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Emirates chief slams British, EU aviation policies

14 July 2008, 08:57 CET

(LONDON) - The president of Emirates airline on Monday criticised the policies being imposed by Britain and the European Union on airlines that he said were stifling moves towards greater efficiency.

In a comment piece in the Financial Times, Tim Clark wrote that the aviation industry was going through "the greatest crisis" in its history, and while it was working towards becoming more environmentally friendly, the EU's emissions trading system and Britain's aviation duty were holding it back.

"We will not achieve this (eco-efficiency) -- or indeed survive as profitable entities -- if punitive taxes, charges and unfair trading schemes continue on their present trajectory," Clark wrote.

EU lawmakers voted overwhelmingly last week to force airlines to rein in their fast-growing greenhouse gas emissions from 2012, as the sector struggles to cope with soaring fuel prices.

Under a draft law, all airlines operating in the 27-nation European Union, including foreign carriers, will have to participate in the bloc's emissions trading scheme (ETS), the EU's main mechanism for fighting climate change.

In Britain, meanwhile, the government has sought to impose an air travel duty that would be higher for long-haul flights compared to shorter trips.

Clark wrote that the EU's ETS was "nothing more than an aggressive tax designed to hurt one of the world's most important industries."

"The UK government's aviation duty proposal is equally alarming," he added.

"Notwithstanding an oil armageddon, aviation should be able to grow and facilitate economic prosperity through greater efficiency," Clark wrote.

"Sadly, the policy levers I mentioned above offer few positive incentives to do so. Profitable airlines that reinvest in new aircraft allow manufacturers to create better models. Without profitability, the eco-efficiency model fails.

"Governments should be encouraging, not punishing, such a formula."

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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