SEVEN MAJOR EU AIRLINES OPPOSE THE IMPOSITION OF CARBON TAXES

Seven leading EU airlines attacked the imposition of a carbon emissions tax in letters addressed to their national leaders. Airbus, British Airways, Virgin Atlantic, Lufthansa, Air France, Air Berlin and Iberia warned against the economic consequences of the introduction of this measure. They argued that the tax is an unacceptable threat to their industry because it can endanger employment and trade in the sector. The introduction of the tax could cost them billions of dollars in lost contracts, expensive airfares and thus reduce passenger traffic.

The projected profits of international airlines are expected to reach some 0.6% or $3.5 bn this year, according to statistics of the International Air Transport Association (IATA). According to the forecast of the organisation, in 2012, the total turnover in the sector is expected to reach $600 bn. The analyses also show that EU airlines could lose $600 mln. If the estimates prove precise, the global airline industry would have lost $26 bn in total profit out of $5.5 trln from 2001 to 2012. "The global economic crisis and high fuel prices are testing international airlines," commented for Klassa daily, Yordan Karamalakov, Branch Manager of the International Air Transport Association (IATA), Bulgaria. According to him, these factors and additional charges to be imposed by the European Commission, will threaten some airlines with insolvency.

This year, 85% of the required carbon emission quotas will be granted free of charge to the airlines, while the remaining 15% must be purchased. The plan is, in the next few years, the amount of free emissions to decrease at the expense of those which will be traded on the open market. Bulgaria Air, Bulgarian Air Charter, BH Air and Air Via are the four Bulgarian companies which received free allowances for 2012.