Foreign carriers have already indicated that they will hike fuel surcharges to satisfy this requirement.
Trade publication Aviator Aero offers a reaction from South Africa:
Industry publication Aviator Aero reports South African Airways will ratchet up fares starting next month:China and Russia, who I don't often agree with, is responding differently.
South African Airways (SAA) is preparing to raise its fuel surcharge on flights to and from Europe by between 1.00 and 2.00 Euros per passenger on flights booked from 1 July 2012 in order to comply with the European Union's Emissions Trading Scheme (EU ETS). …
"We fully support Government’s proposal that the EU suspend its ETS for two years so that a globally acceptable and equitable solution can be reached through negotiation at the UN's International Civil Aviation Organisation (ICAO), which is the body mandated to set and implement global civil aviation standards and regulations," explained SAA CEO, Siza Mzimela.
"At the same time, as a responsible airline, we are taking steps to comply with the EU ETS, but we are doing this under protest. This will ensure that SAA can continue providing air services to London, Frankfurt and Munich without disruption or sanction," added Mzimela.
First AIN Online about Russia:
Russia has raised the stakes in the increasingly bitter dispute over the European Union's imposition of its controversial emissions trading scheme (ETS) by refusing to grant new overflight rights to Finnair and abandoning a commitment to allowing new rights to be issued free of charge. The Russian government confirmed that it had deliberately singled out Finnair for punishment as an EU-based carrier and that it intends to punish other EU airlines in the same way—probably starting with Scandinavian Airline System, since Russia is currently in a standoff with the governments of Sweden, Norway and Denmark over traffic rights.
China, for one, isn’t going along with the plan. The head of a national airline body said Wednesday that China would respond in kind to any EU penalties, such as fines or impounding of aircraft. For their part, EU officials have been reluctant to state publicly what they would do to airlines that don’t comply with the rules. But pressure is growing for a compromise that avoids a trade war. Airbus is already complaining of retaliatory measures by China and other countries, which are suspending orders for aircraft. A tit-for-tat escalation would be a disaster for an industry that struggles to make a profit at the best of times, which certainly isn’t the situation in Europe today. China’s bellicose stance may be a tactic to force Europe to the negotiating table, a prospect that was held out recently by a European envoy in Beijing. Or it might be frustration at the EU’s stance. Expect more sabre-rattling in the months ahead, though EU ministers clearly have even weightier issues on their mind (think existential dread) that may delay any common negotiating position.Not surprisingly, President Obama and his hapless Transportation Secretary, Ray LaHood, responded with dead air:
Even Transportation Secretary Ray LaHood agrees, telling lawmakers at a recent Senate Commerce Committee hearing that he opposes the EU's approach on both "legal and policy grounds." According to Politico, Secretary LaHood also said that "[t]he Obama administration strongly opposes the European Union's emissions trading system for airlines." What LaHood could not say was whether or not the administration would support legislation addressing this matter.Technorati tags:
The bill introduced in the Senate by John Thune is very similar to the bill passed in the House in that it would prevent Europe from forcing their emissions tax onto U.S. airlines. An endorsement from President Obama would surely help push the bill through the Senate and with his signature would become law.
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