Airlines setting foot and taking off in Europe are soon going to be included in the European Union’s Emission Trading Scheme (ETS) and are expected to pay 15% of their permits in ETS auction starting 2012, according to this Reuters article.
With skyrocketing fuel prices, guess who’s going to pay for the imposed cap and trade scheme under the heading “Environmental taxes and surcharges”?
According to BusinessGreen.com, airline ticket prices are expected to rise by EUR 10 for short haul flights and between EUR 30 and EUR 40 for longer haul flights.
Of course, this proposal do not fly well with the Association of European Airlines (AEA). The group forecasted plummeting profits for the industry and market share as well as greenhouse gas emissions shifts from European carriers to non-European rivals.
“It is unacceptable that we should face the prospect of having to buy permits to purchase fuel – at grossly inflated prices – to zigzag our way around Europe’s patchwork airspace.”
AEA said it prefers the European Commission’s revised Single European Sky (SES) program as a way to cut aviation emissions.
The revised SES program is expected to optimize air traffic management in Europe which has the potential to reduce fuel consumption and emissions by 10% per flight.
Public advocates are not far from the scene demanding the European Parliament to include the aviation industry in the EU ETS as soon as possible.