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FINANCIAL NEWS
New EU tax to cost Etihad Airways USD719m
02 Aug 2011
(MENAFN) Etihad Airways said that a new European Union tax aimed at capping airlines’ carbon emissions could cost Abu Dhabi flag carrier up to USD719 million over the next eight years, reported Arabian Business.
Etihad also said that airlines landing within the EU from the beginning of the year 2012 would have their carbon dioxide emissions capped at 97 percent of their average 2004-06 levels and 95 percent in 2013. The company added that this new tax could cost the Gulf carriers billions of dollars.
Abu Dhabi flag carrier explained that airlines would face fines that could reach USD143 for every tonne of carbon dioxide they release into the atmosphere above the limit. This comes in a bid to reduce pollution by five percent through 2020.
Etihad Airways’ head of environment, Linden Coppell, said that the cost of complying with the Emissions Trading Scheme (ETS) could reach about USD717 million by the year 2020.
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