Emissions trading could damage the travel industry as much as Air Passenger Duty, former Monarch Airlines managing director Tim Jeans told an SPAA dinner last night.
Speaking at the travel trade association’s 81st annual dinner in Glasgow, Jeans said the emissions trading scheme will be a “deal changing tax” for the industry. The EU has given a start date of January 2012 for airlines to join its Emissions Trading System.
Under the scheme, the aviation sector would have to buy carbon permits to cover its emissions, creating another form of tax on air travel.
Jeans said while the government had admitted APD was a cash cow, few politicians would speak out against a genuine green tax. “This could be as big a tax as APD and there will be little or no lobby to fight it. The reality is this would change the industry forever.”
The travel industry, led by Abta, is concerned that emmissions trading will come in but there will be no reduction in APD meaning the aviation industry will end up paying twice for its environmental impact.