Business | Aviation
Gulf airlines will benefit by avoiding new EU tax
Airlines in the Gulf could benefit from proposed European legislation requiring taxes be paid when travelling through European airports, according to officials at Air France headquarters in Paris.
- By Suzanne Fenton, Staff Reporter
- Published: 00:03 June 12, 2008
Paris: Airlines in the Gulf could benefit from proposed European legislation requiring taxes be paid when travelling through European airports, according to officials at Air France headquarters in Paris.
Under proposals being discussed, all airlines using airports in the European Union (EU) will have to put a cap on their greenhouse gas emissions by 2012.
Countries below their quota of greenhouse gas emissions will be able to 'buy' more from those countries above the quota. Similarly, countries exceeding their greenhouse gas emission cap will have to offset it by selling to countries below the quota.
Jean-Cyril Spinetta, chairman and CEO of Air France, said: "Many airlines can benefit from this European legislation. All non-European carriers, for example between India and the US, can go through Dubai instead of Paris or London, and so not pay this taxation by going through Europe."
Spinetta also said the current high price of oil is "a driver" for ecological awareness in the airline industry. "When the price of fuel exceeds one third of the overall cost of the airline cost, like today, there is no need to increase taxation to make airlines more efficient.
"More taxes would further delay our investments," Jean-Cyril Spinetta said.
Around 200 journalists from around the world gathered at Air France headquarters to hear Air France promising to commit itself to reducing its average fuel consumption to 3.7 litres per passenger per 100 km by 2012.
Nearly 1,039 kg of carbon dioxide is released on a Dubai-Paris rountrip. This means each person on the flight is responsible for around 94.9 gm of carbon dioxide per kg.
Spinetta said the new aircraft engines coming into the fleet by 2020 will reduce nitrogen oxide by 20 per cent.
Around 26.6 billion tonnes of carbon dioxide are produced globally by aircraft every year.
Figures show that worldwide, 15 to 17 per cent of CO2 emissions are produced by transport. Of this, sea travel accounts for 1.5 per cent and air travel accounts for 2.65 per cent. Spinetta said that although 2.65 per cent was a low figure, "it's significant, especially as flights develop."
Pierre-Henri Gourgeon, deputy chief executive officer of Air France, said regional hubs such as Dubai were built to reduce carbon dioxide emissions. To connect a network of 100 cities, 4,950 direct routes are needed. By using a hub, the number of routes required plummets to just 100.
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