Airbus, Other European Aviation Firms Protest EU Carbon Tax Fallout

March 12, 2012
Nine leading European aviation companies have written to political leaders in Germany, France, Britain, and Spain

March 12--PARIS/ROME -- Nine leading European aviation companies have written to political leaders in Germany, France, Britain and Spain asking for action to offset a backlash from an environmental tax on flights operating in European Union aerospace.

One of the co-signatories of the letters, French aeroplane manufacturer Airbus, said in a statement issued Monday that China has suspended 12 billion dollars worth of Airbus orders.

China is one of the countries -- others include the US, Russia, Indian and Japan -- opposed to the EU Emissions Trading Scheme (ETS) which levies a charge on flights in the EU based on carbon emissions.

"Airbus estimates that this will jeopardize more than 1,000 Airbus jobs in Europe and at least another 1,000 in the supply chain," the statement added.

Other signatories of the letters include chief executive officers from Air France, Air Berlin, British Airways, Iberia, Lufthansa, Virgin Atlantic, MTU Aero Engines and Safran, the Airbus statement said.

"The nine CEOs expect the list of suspensions, cancellations and punitive actions to grow as other important markets continue to oppose ETS," it added.

The nine CEOs urged European leaders to find a "compromise solution," through the United Nations International Civil Aviation Organization.

Copyright 2012 - dpa, Berlin