China threatens trade war over EU jet emissions tax
The "environmental squeeze" that helped prompt British Airways owner IAG's takeover of BMI is set to ignite a trade war between China and Europe after the EU's top court upheld a move to charge airlines using the Continent's airspace for their greenhouse gas emissions.
Beijing yesterday threatened disruptions to trade with the EU after the European Court of Justice ruled on Wednesday that the emissions tax would go ahead as planned on 1 January. The move added China's voice to that of America, which last week warned that it would take "appropriate action" if the proposed charges were not amended or delayed.
The state-run Xinhua News Agency, which acts as the Chinese government's mouthpiece, said: "This is a trade barrier in the name of environmental protection and will strike a blow to passenger benefits and the international airline industry. It will be difficult to avoid a trade war focused on an aviation 'carbon tax'." The European Commission has calculated that costs per passenger could rise by about £21 on a return transatlantic flight as a result of the emissions charge.
The ruling from the European Court of Justice will intensify the pressure on airlines exerted by environmental concerns, adding to the woes of an industry already reeling from high fuel costs and the weak US and European economies.
The takeover of BMI, by BA and Iberia owner IAG, was prompted by its desire to secure lucrative landing slots at Heathrow, after a third runway at the international airport was finally ruled out last year on environmental grounds.
Edward Stanford, an analyst at Oriel Securities, said: "Heathrow landing slots are as rare as hen's teeth. The only way to get more is to buy another airline which has them."
BA is expected to utilise BMI's landing slots far more efficiently, by significantly increasing the size of the planes using many of them.
- 1 Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
- 2 Question Time's 'passionate highlander' is the William Wallace of the Better Together campaign
- 3 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 4 Tony Abbott embarrasses Australia by praising Japanese WWII military, ‘getting on the sake’ and posing for ‘crotch-shot’ photo opportunity
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Question Time's 'passionate highlander' is the William Wallace of the Better Together campaign
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...