Carbon regulations could cripple European airlines

According to the Daily Telegraph, British Airways chief executive officer Willie Walsh believes the carbon emission regulation will put European airlines at a distinct disadvantage. In order to cope, many companies may be forced to reduce staff levels in 2011, when the emission regulations are introduced.

Walsh reportedly put his thoughts in writing and sent them to Stavros Dimas, the European Union Environment Commissioner. Walsh is strongly against focing airlines to purchase carbon credits to compensate for any emissions above a pre determined level. Doing so, Walsh said in his letter, could double carrier’s costs.

The Telegraph reports Walsh predicting in his letter to Mr. Dimas that airline traffic would find more cost efficient means to avoid the carbon regulations, such as flying through Middle Eastern hubs, taking away business for European airports.

Currently, airline predicts the costs of the next 11 years will be around £36 billion. But if the proposed regulations are accepted, those costs could rise to as much as £91 billion, according to research cited by the Telegraph from the Association of European Airlines.

www.britishairways.com