Dubai could gain from EU aviation carbon-trading plan: US official

(DUBAI) - Dubai's position as a global aviation hub could be enhanced if the European Union introduces a carbon-trading scheme for aircraft, the head of the US civil aviation regulator said on Thursday.

Marion Blakey, admininistrator of the Federal Aviation Administration, said more aircraft could begin using the airport as a hub to avoid the extra cost of the scheme.

"Dubai might benefit from the (carbon-trading) policy ... Air traffic could be diverted to it," she told reporters after meeting aviation officials in Dubai, a member of the United Arab Emirates (UAE).

Dubai has the busiest airport in the Middle East, handling almost 29 million passengers last year.

The European Commission has proposed including airlines in an emissions trading system, which currently only applies to power generators and energy-intensive industries.

The plan would see airlines landing and taking off in the EU participate in the scheme.

The emissions trading system puts a limit on the amount of carbon dioxide that energy-intensive companies can emit.

If a company overshoots its target, it must buy permits from companies that have undershot their pollution targets.

Dubai airport forecasts that it will handle 33 million passengers this year, rising to 70 million by 2008 through terminal expansion projects.

The facility handled a total of 237,258 flights in 2006, according to its website. It is connected to more than 194 destinations through a network of 113 international airlines.

Another Dubai airport, which aims to be the world's largest and to handle 120 million passengers a year, is now under construction.