Hong Kong Airlines says it may cancel order due to ETS
Hong Kong Airlines is threatening to cancel an aircraft order with Europe’s Airbus – directly because of the growing tensions between China and the European Union on including airlines in the EU’s emissions trading scheme. Hong Kong Airlines is backed by China’s fourth-biggest carrier, Hainan Airlines. It is now considering whether to stop its USD$3.8 billion order for 10 Airbus A380s.
“We cannot do something which is against our country’s interests,” Yang Jianhong, the airline’s president, told the South China Morning Post.
This is the second time that the same airline has threatened to axe its A380 deal due to the ETS controversy. It earlier said it would withdraw the acquisition, but it signed the order eventually. However, it now says it may cancel that order – the latest sign of the possibility that a wider trade war could begin as a result of the ETS dispute.