Holiday Lettings news - 'Punitive' emissions trading scheme would break airline industry warns IACA

'Punitive' emissions trading scheme would break airline industry warns IACA

The International Air Carriers Association (IACA) has said that a "punitive" emissions trading scheme (ETS) would be the final straw for many airlines and lead to more bankruptcies.

The IACA's president, Christoph Mueller, met with MEP Peter Liese to discuss a more reasonable design for the inclusion of the aviation industry into the EU's ETS. If a poorly designed scheme were to get approved, more bankruptcies would be inevitable, Mueller said:

"We've already had 24 airline bankruptcies this year and we expect more. What more evidence do policymakers need to see that the aviation industry is in severe financial trouble? A punitive ETS scheme on top of this would be the final straw and add insult to injury.

"This is the last chance for policymakers to show courage and change course in light of the fact that the economic reality for airlines is drastically different to when the inclusion of aviation into the EU ETS was first proposed."

Mueller added that spiraling oil prices have already had a similar effect to that which an ETS scheme would achieve, and that any more financial pressure would hinder the development of, and investment in, more efficient fleets.

"We urge all parties involved...and the European Parliament...to go for a system which reflects the economic climate of today, and one which will allow airlines to continue providing mobility to Europe," Mueller concluded.

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