BEIJING--The trade group representing the world's airlines
reiterated its call for a comprehensive global solution on the
contribution of aviation emissions to climate change, criticizing
the European Union's unilateral move on reducing airlines'
pollution emissions as creating discord at a time when the industry
is still struggling with a deepening global economic crisis.
The call comes at a particularly tough time for the airline
industry, which is expected to post a net profit of $3 billion this
year, less than half the $7.9 billion the industry made in 2011,
according to the International Air Transport Association.
Airline executives are gathering in Beijing for a three-day
conference to discuss issues such as high oil prices, intensifying
competition, and increased taxation on the airline industry.
"Europe's unilateral and extra-territorial inclusion of
international aviation in its emissions trading scheme from 2012 is
creating discord when we need harmony," said IATA Director General
Tony Tyler.
"I think it's a good thing that China's response has been strong
to the ETS, mandating its carriers not to be a part. We hope Europe
realizes that it's taking a wrong approach and it finds a way to
reverse its position."
The European Union's move to require all airlines to participate
in the E.U.'s Emissions Trading Scheme has prompted outcries and
threats of a trade war. It said in May that a total of 10 airlines
from China and India failed to meet a March 31 deadline to report
their 2011 carbon dioxide emission data, raising the possibility of
penalties or a ban from flying to Europe if they miss the next
deadline in mid-June.
China Eastern Airlines Corp. (0670.HK) Chairman Liu Shaoyong
said on the sidelines of the meeting that the Shanghai-based
carrier would continue to comply with the Chinese government's
decision of not submitting its carbon dioxide emissions data to the
E.U.
He reiterated that the carrier supports a multilateral approach
of reducing global carbon emissions through the International Civil
Aviation Organization, a Montreal-based agency of the United
Nations, at its 2013 Assembly.
China has banned its airlines from complying with the E.U.
program, and has suspended some orders made by its airlines with
European aircraft manufacturer Airbus, including 10 Airbus
380s.
"It's very unfortunate to end up being the scapegoat on ETS
because we are European and everybody knows who Airbus is," said
John Leahy, Airbus's chief operating officer for customers, in an
interview with Dow Jones Newswires.
Rival Boeing Co. (BA), despite taking advantage of the trade row
by taking orders from Airbus, echoed the industry's view that the
new program would increase the burden on airlines and "make them
less profitable and less likely to buy an environmentally friendly
airplane."
"Everybody looks at ETS as a potential windfall for us. But I
think ETS is a bad thing for the entire market. It's bad for our
customers, it's not going to do anything to reduce the
environmental footprint of airplanes," said Mr. Albaugh.
Write to Joanne Chiu at Joanne.chiu@dowjones.com and Jeffrey Ng
at Jeffrey.Ng@dowjones.com