Long legal dispute between Europe and China may be ahead
A long legal dispute between Europe and China could get underway as China issued a state “ban” on airlines in the country from joining the EU’s Emissions Trading Scheme. Chinese airlines cannot now increase their fares or add passenger fees to absorb the scheme’s impact. This ban comes several weeks after the China Air Transport Association announced that its members were against the ETS, which enforces a charge on flights in EU airspace based on carbon emissions. It says the plan is unacceptable as it would cost Chinese airlines €95 million.
Analysts say that it’s hard to see how the EU will react. “They would be able to stop the Chinese airlines from flying to the EU, but that could see retaliatory action by China,” says one.