Freight Transport

Cathay Pacific chief executive Tony Tyler says that the European Emissions Trading Scheme (ETS) will lead to unfair distortions

Tyler has warned that the competitive distortion resulting from the European Parliament's decision to unilaterally and extra-territorially bring all flights into and out of Europe into the European ETS would be significant for airlines in Asia

Tyler said that Cathay Pacific is lending its backing to the "chorus of disapproval" over the EU proposals, including those if the ATA and IATA

Once the system comes into effect, Cathay Pacific's non-stop flights to Europe (eg London) will attract an emissions charge from the moment of pushback in Hong Kong to touchdown at Heathrow and vice versa However, a Middle East carrier making the same journey on a two sector basis, ie from Hong Kong with an aircraft-change stopover in the Middle East, will be charged only for the Middle East-Europe leg

"The market has naturally created a difference in price for a non-stop and a one-stop journey to Europe," said Tyler "Yet the European proposal will add a much greater cost to the non-stop product than the one-stop product - distorting the market to the detriment of the non-stop carrier How can that be considered fair?"

He also questioned the logic of such a decision, saying that a carrier flying an efficient great circle route non-stop does no more or less harm to the environment that another flying a longer distance

Tyler said that the right answer is to develop a global scheme that includes all flights This would eliminate any competitive distortion within the market and would also be legal and more politically acceptable to airlines from outside the EU

"We wholeheartedly support the IATA position that an ETS is the best market-based way of addressing the impact of aviation's emissions on climate change," said Tyler, "but, vitally, it must be a global ETS And the body best placed to address this is ICAO - a UN agency set up specifically to address international aviation issues"

Tyler emphasised that it is critical for the aviation industry to speak as one voice to refute some of the distortions and misrepresentations that have grown up around the industry's role in global warming

He said one measure that would have significant positive benefits was the proposal for a Single European Sky for air traffic management "Put this in place and you save up to 12% flying time in Europe for all the carriers involved - a 12% fuel burn saving and the collateral reduction in associated emissions All through improving air traffic infrastructure by straightening routes and implementing new, more efficient procedures"

In Asia, the IATA-led introduction or modification of two air routes between China and Europe had led to significant fuel savings, with more in the pipeline