Under a law of European Union, all airlines that fly in and out from Europe must possibly reduce greenhouse gas emissions and with carbon dioxide from their planes, beginning next year, or spend half fines and fees.U.S.-based airlines that began to find out steady earnings only this year soon after a steep drop in demand during the economic downturn are fighting the law, stating EU has no appropriate to impose such a program on non-European airlines.
United Continental Holdings Inc., the parent organization of Continental and United airlines; AMR Corp., the parent of American Airlines; and the Air Transport Assn., the business group for the country's airlines, argued towards the law at the European Court of Justice last week. China-based airlines also have protested the plan. A choice is expected afterwards this year or early next year.
The EU Commission launched the cap-and-trade emission plan in 2005, and has targeted utilities and producers. Beginning next year, greenhouse fuel emissions from airlines might be capped at 97% of the typical 2004-06 amounts and 95% in 2013.
Airlines that don't utilize all their allowances can market the excess to these carriers that exceed the limits. The fine for violating the program is one hundred Euros, or about $142, for every single a lot of open greenhouse gases in which airlines emit over the limit.
Steve Lott, a spokesperson for the airline trade group, stated the emission cap rule "violates worldwide law and is poor policy." He added which the International Civil Aviation Organization features a voluntary plan to minimize emissions by 1.5% for each year until 2020.
Lott declined to explain whether United States based airlines may boost fares if the European court supports the emission program for U.S. airlines. But he added that "when a business faces higher expenses, it should recoup them one way or another."