Middle-east airlines Emirates and Etihad Airways warned of higher ticket prices recently as they look to pass on costs of a European Union carbon trading scheme to passengers. Tim Clark, President, Emirates, the world’s largest long-haul airline, told the Gulf News newspaper that the company would spend over Euro 40 million (USD 52.68 million) in 2012 to purchase additional emission allowances.
"Unfortunately, while we always try to make our fares as competitive as possible, the additional costs of the EU Emissions Trading System programme will almost certainly have to be passed on to customers, but how this will be done has not yet been determined," Clark said, according to the Vancouver Sun. Under plans to tackle climate change that came into effect on January 1, 2012; airlines touching down or taking off in the 27-nation European Union and three neighbouring nations must account for their CO2 emissions as part of an expansion of the world’s largest carbon market. Abu Dhabi’s Etihad Airways echoed Emirates’ views. Etihad will end up bearing an extra cost of Euro 310 million over the next nine years, Linden Coppell, Head of Environment, Etihad said. “It is inevitable that such a cost would have an impact on fare levels. This is why we want to ensure we have a fair global system," Coppell said. The statements from the Gulf airlines come close on the heels of German carrier Lufthansa recently warning of higher ticket prices.
Click here to see the original article>"Unfortunately, while we always try to make our fares as competitive as possible, the additional costs of the EU Emissions Trading System programme will almost certainly have to be passed on to customers, but how this will be done has not yet been determined," Clark said, according to the Vancouver Sun. Under plans to tackle climate change that came into effect on January 1, 2012; airlines touching down or taking off in the 27-nation European Union and three neighbouring nations must account for their CO2 emissions as part of an expansion of the world’s largest carbon market. Abu Dhabi’s Etihad Airways echoed Emirates’ views. Etihad will end up bearing an extra cost of Euro 310 million over the next nine years, Linden Coppell, Head of Environment, Etihad said. “It is inevitable that such a cost would have an impact on fare levels. This is why we want to ensure we have a fair global system," Coppell said. The statements from the Gulf airlines come close on the heels of German carrier Lufthansa recently warning of higher ticket prices.