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International Air Carrier Association
Emissions Trading: time for a reality check
Monday, May 26, 2008

Speaking after the IACA Board of Directors’ meeting in Brussels, IACA’s President, Christoph Mueller, called on the European Parliament’s ENVI committee to recognise the harsh reality of the current aviation business environment and to vote for a workable and affordable Emissions Trading System (ETS).

IACA’s Board continues to support the inclusion of aviation into the EU ETS and remains committed to addressing their members’ environment responsibilities.  However, it has serious concerns with the Rapporteur’s (Peter Liese MEP) punitive draft amendments which recommend 100% auctioning from 2013 and a closed trading system for aviation.

“This industry is simply not a state to cope with the huge additional costs that 100% auctioning would bring,” said Christoph Mueller.

IACA estimates that if 100% auctioning was introduced in 2013, it would mean €15bn per year in additional costs which they are unlikely to be able to absorb.

“The current economic downturn and record fuel costs are already hitting the industry hard and we are seeing the impact of these on a daily basis.  Any further pressure on costs would have serious consequences for the sector, as well as for the wider European economy, tourism and regional connectivity,” continued Mueller.

“IACA remains committed to the ETS only if it is well designed, manageable and affordable.  We urge the Parliament and the Council to vote for a reasonable and efficient system.  A punitive design would blatantly disregard today’s economic realities.”

Vicky Karantzavelou - Monday, May 26, 2008
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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