CEO says rights to fly to Shanghai denied in escalating ETS dispute
Lufthansa has been denied rights to operate flights to Shanghai with an Airbus A380 as part of China’s retaliation to the European Union’s Emission Trading Scheme, the airline’s chairman and CEO Christoph Franz believes. He blames ETS for distorting the global airline market.
“The EU ETS is further increasing the already distorted level playing. [The European airline industry] cannot accept retaliatory measures against the EU ETS in whatever form, landing rights or other. Some days ago, Lufthansa once again did not get authorisation to use an A380 to Shanghai,” Franz told a meeting of the European Aviation Club in Brussels.
In a blunt message to European regulators, he added that Lufthansa wants an ICAO-led solution to the issue. “Listening and nodding is not enough,” he said. “We are in favour of a global solution. However, in the meantime there is distortion. This distortion started for Lufthansa in the second half of 2011 when we started hedging and buying CO2 certificates. We are trapped in a corner.”
Lufthansa has said that it will have to buy at least 35% of the ETS certificates it needs for 2012, creating an estimated cost of €130 million – a sum that will be passed on to passengers.
[pictured: Lufthansa crew; courtesy Star Alliance]