BUSINESS NEWS Airline emissions: Aviation sector responds to EU proposals to cut emissions. Ian Taylor reports


Airfares in Europe ‘could go up 16% due to carbon plans’


EU proposals to cut airline emissions threaten to increase fares in Europe by an average 16% by 2030, according to a report commissioned by airports association ACI Europe. The report, an Assessment of the


Impact of the Fit for 55 Policies on Airports by economics consultancy Oxera, was published last week. The European Commission


released its ‘Fit for 55’ package of proposals – which aim to cut greenhouse gas emissions by at least 55% of 1990 levels by 2030 – in two batches in July and December last year. But ACI Europe noted it


tabled the package “without a comprehensive assessment of its impact” on aviation and said: “Oxera’s report shows the EC proposals will result in significant fare increases, reducing demand and impacting on EU air connectivity.” The report suggests intra-EU


flights will see the greatest impact. Fares for flights within Europe would rise by 16% by 2030 under the proposals, leading to an 11% reduction in demand, according to Oxera.


It warned regional airports would


be worst affected, “hurting regions highly dependent on tourism”, with the impact on flights beyond the EU mitigated by travellers using hubs located in other regions “especially the Middle East and Asia”. The report suggests fares for


flights beyond the EU would increase by just 2% by 2030 as a result of the proposals, leading to an estimated 4% reduction in demand. Extending its analysis to 2050,


Oxera estimates there would be further increases in fares and a 12% reduction in demand for intra-EU flights and a 9% reduction beyond the EU.


Iata chief Walsh ‘disturbed’ by MEPs’ rejection of proposed EC climate laws


The European Parliament rejected key parts of the EC’s proposed climate legislation last week as MEPs from right and left refused to compromise on a deal. A majority opposed a “watered


down” review of the EU emissions trading scheme (ETS) for aviation, leading it to be referred back to


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the parliament’s environment committee. MEPs also failed to agree plans for a carbon border tax. However, they did agree to


expand the scope of the ETS to include all departures from the European Economic Area from 2024. That drew criticism from Iata, which warned it would


ACI Europe called for remedies


to address the impact of Fit for 55 proposals, including financial support for the sector, incentives for use of sustainable aviation fuel, and the allocation of revenues from fuel taxes and the EU emissions trading scheme (ETS) to aviation decarbonisation. It also urged the EU to prohibit


member states from setting different national targets. ACI Europe director general


Olivier Jankovec said the EU’s Fit for 55 package threatens “unwelcome and unanticipated consequences” and warned: “The process will be costly and lengthy.”


The EU’s ‘Fit for 55’ proposals could have ‘unwelcome consequences’, ACI Europe warns


Airlines body seeks tweaks to ‘Fit for 55’ plans


Lobby group Airlines for Europe (A4E), which represents Europe’s leading carriers, warned adjustments are needed to the ‘Fit for 55’ proposals agreed by EU transport ministers this month. Ministers finalised the EU


Council’s position on both the ReFuel EU Aviation proposal, which mandates the use of sustainable aviation fuels at EU airports, and the Alternative Fuels Infrastructure Regulation (AFIR), which will require EU airports to supply electricity to aircraft while stationary. A4E called for adjustments to


the proposals during ‘trilogue’ negotiations between the EC, European Parliament and Council of Ministers. It reported Europe’s airlines


support an EC target of 2% SAF in aviation fuel by 2025 and 5% by 2030, describing these figures as “realistic”. The association also expressed support for a proposal to exempt small airports from being required to supply electricity to stationary aircraft.


Willie Walsh


cooperation to tackle aviation’s climate change impacts.” He argued the International


“threaten the prospects for major global decarbonisation efforts”. Iata director general Willie


Walsh called the parliament’s decision “disturbing”, claiming: “It endangers international


Civil Aviation Organisation assembly in September this year would be “unlikely” to adopt a long- term goal for decarbonising the sector “if Europe attempts to force third countries to adopt solutions developed for its internal market”. Iata suggested it would also


weaken Corsia, the carbon offsetting scheme agreed by many governments.


16 JUNE 2022 45


PICTURE: WTTC


PICTURE: Shutterstock/Karolis Kavolelis


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