Freight Transport

Air Transport Association (ATA) president & CEO James May has slammed the European Parliament's October 24th final approval of legislation covering the world's airlines under the European Emissions Trading Scheme (ETS), saying the scheme is contrary to intermational law and bad policy

In a speech delivered before the European Aviation Club in Brussels, May drew attention to a proliferation of new aviation taxes and charges within the EU that are counterproductive to the industry's ongoing environmental progress

"Masquerading under the banner of supposedly ‘protecting' the environment, these measures threaten to stifle the growth of the industry, compromise our environmental progress and, ultimately, raise prices for consumers, leaving them to take alternative, less safe, higher emitting modes of transportation," said May

He also pointed out that the EU legislation adding aviation to the ETS - which is opposed by the US and many other countries - is in violation of international law and reverses the progress being made with ongoing fuel-efficiency and environmental innovations

This European cap-and-trade system would impose an estimated annual cost to airlines (over and above the cost of jet fuel) of several billion dollars in 2012, tripling in 2020

May offered three solutions being pursued vigorously by ATA member airlines, and emphasised the vital connection between energy and environmental issues and the importance of addressing these issues together

• Governments must recognise that policies that siphon money out of aviation are counterproductive; airlines should not be prevented from reinvesting in ever-improving technologies that reduce emissions

• Governments and politicians have dilly-dallied for too long in considering new air traffic management systems; they should get on with the task of building them

• We must all recognize the need for developing alternative fuels, a task that demands the development of comprehensive policies and genuine public, private and academic partnerships

May concluded his remarks by urging Europe and the world away from unilateral action on these important issues, saying: " great challenges are best addressed collectively"

ATA member airlines have already taken significant action to address greenhouse gas (GHG) emissions in their operations, even though commercial airlines account for only 2% of US GHG emissions Between 1978 and 2007, US airlines improved their fuel efficiency by 110%, resulting in savings of 25 billion metric tons of CO₂

Given that the airlines already are highly greenhouse gas-efficient, the ETS would siphon funds away from the US commercial aviation industry, which is spending billions of dollars to replace aircraft with new, more fuel-efficient models Its efforts to retrofit airplanes with new engines, airframes, winglets, fan blades and other design features that improve efficiency would also be compromised by the plan

The Federal Aviation Administration estimates that 90% of the emissions improvements achieved within the industry come from the airlines' continual reinvestment in newer aircraft and technology upgrades The Association of European Airlines estimated compliance costs of the ETS could reach $67 billion a year, taking away funds that would otherwise go to ongoing environmental improvements

IATA has also blasted the European Council of Justice and Home Affairs ministers for rubber stamping - and sealing into law - Europe's decision to bring air transport into the European Emissions Trading Scheme (ETS) from 2012

ATA and IATA are not alone in their opposition to the EU's ETS Last fall, all non-EU countries that are members of the International Civil Aviation Organization, the United Nations body that regulates international aviation, stated their opposition to the proposal on legal and policy grounds The ETS would require US and other non-EU airlines to pay EU entities for the airlines' emissions for the entire length of a flight to and from Europe, without the consent of the airlines' home countries This is in violation of the Chicago Convention and other international treaties