The financial performance of U.S. airlines improved from “razor thin margins to paper thin margins” during the first half of the year, as passenger airlines collected 2.1 cents in profit for every dollar of revenue, according to trade organization Airlines for America (A4A). In a quarterly media briefing on August 22, A4A said airlines benefited from a small decrease in fuel prices, their largest cost.
Small airlines face the prospect of fines for failing to meet the European Union’s April 30 deadline for submitting carbon credits under the emissions trading scheme (ETS), according to carbon trading specialist CF Partners. Although the European Commission agreed last November to suspend the application of ETS for flights to and from points outside the EU, the cap-and-trade scheme still applies to flights between EU airports.
Jet Aviation expanded its management support service offerings to help aircraft owners and operators comply with the upcoming April 30 deadline for emissions allowances under the European Union Emissions Trading Scheme. All operators that are required to surrender emission allowances must open a union registry account in their appointed member state and submit the allowances by the deadline or face penalties. Jet Aviation is providing union registry account opening and administration services to help operators comply with the regulations and avoid non-compliance fines.
Some business aviation and smaller airline operators are facing the prospect of fines for failing to meet the European Union’s April 30 deadline for submitting carbon credits under the emissions trading scheme (ETS), according to carbon trading specialist CF Partners.
The International Air Transport Association (IATA) called for governments to reach a consensus on a global approach to market-based measures (MBMs) to help aviation manage its carbon emissions during this week’s Greener Skies Conference in Hong Kong.
NBAA and the General Aviation Manufacturers Association (GAMA) are closely watching developments at the International Civil Aviation Organization (ICAO) in Montreal involving the European Union Emissions Trading Scheme (EU-ETS). On Tuesday, GAMA president and CEO Pete Bunce said at the organization’s yearly press briefing that both associations are also working closely with the International Business Aviation Council on this matter.
Despite the European Union’s decision to postpone enforcement of its Emissions Trading Scheme (ETS) for international flights until next fall, President Obama signed a bipartisan measure on November 27 that orders the U.S. Secretary of Transportation to prohibit U. S. aircraft operators from participating in the EU carbon tax plan.
“With final passage of this act, the President and Congress stand as one in declaring that the EU-ETS is an overreach, it’s wrong, and it won’t fly with operators based here in the U.S.,” said NBAA president and CEO Ed Bolen.
ETS is still in full force for all flights between airports in the 27 European Union states, and also in the so-called European Economic Area (also including Iceland, Norway and Liechtenstein) as well as Switzerland and Croatia. The European Commission has made it clear that non-European operators will still be required to complete the monitoring, reporting and verification (MRV) process for carbon dioxide emissions from intra-European flights. They will also be required to submit carbon credits covering these emissions. Legal opinion seems to be in agreement that the new U.S.
The “high level group” formed by the International Civil Aviation Organization (ICAO) to develop a global agreement on reducing carbon emissions from the air transport industry convened for the first time on December 12. The group aims to draft a plan for adoption at the next ICAO Council, scheduled for September and October 2013.
President Barack Obama closed the legislative loop on U.S. refusal to comply with the European Union’s emissions trading scheme (ETS) on November 27, when he signed S.1956, legislation that orders the Secretary of Transportation to prohibit U.S. aircraft operators from participating in the carbon tax plan. The legislation also calls for the government “to conduct international negotiations to pursue a worldwide approach to address aircraft emissions.”