CO2 ruling could add €50 to air fares - O'Leary

EUROPEAN PARLIAMENT: A DECISION by the European Parliament to include aviation in its CO2 Emissions Trading Scheme (ETS) could eventually cost consumers an additional €50 on every flight, the chief executive of Ryanair has warned.

MEPs yesterday voted for the aviation industry, estimated to account for some 3 per cent of Europe’s carbon dioxide emissions, to be included in the scheme from 2012 onwards.

The agreement states airlines must cut emissions by 3 per cent in the first year compared to 2005 levels, and by 5 per cent from 2013 onwards. The ETS began in 2005 and it applies to major energy and industrial concerns which collectively account for some 40 per cent of the EU’s total greenhouse gas emissions.

Michael O’Leary of Ryanair said the ruling, which parliamentarians described as an “enormous stride” in safeguarding the environment against greenhouse gases, would not reduce emissions, but instead “further damage European airlines” at a time when oil costs some $140 a barrel.

“These clowns in the European Parliament seem determined to destroy the European airline industry with these discriminatory taxation penalties,” he said.

“Aviation is not the cause of, nor the solution to, CO2 emissions or global warming. Increasing taxation on air travel will have no effect on either emissions or global warming, it will just raise the cost of air travel for ordinary European consumers.”

German MEP Peter Liese, the author of the report resulting in the ruling, said he was confident the measures could make a significant impact in protecting the environment. The regulations will apply to all flights starting and landing in Europe.

Mr Liese said “a global agreement is our final goal” and that the revenues generated from the auctioning of emissions permits should be used to fund measures to combat climate change, research on clean aircraft and low-emission transport. Meanwhile, a new regulation debated yesterday could mean passengers will soon be able to see exactly what they have to pay for their flights when booking online.

Under the regulation, fares displayed would have to include all taxes and charges that are generally added to the basic ticket price as the online booking process proceeds. The ruling should come into force later this year.

Fine Gael MEP Jim Higgins said it should be the end for “grossly misleading airline advertising”.

This article appears in the print edition of the Irish Times