Isra-Mart srl: China's Objection To EU ETS Hits A380 Order

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China’s opposition to the European Union’s (EU) inclusion of non-European airlines in its emissions trading system (ETS) is taking on greater force.

The Chinese government has blocked progress on Airbus’s sale of 10 A380s to Hong Kong Airlines because of the government’s opposition to the EU policy, industry officials say. EU representatives, however, shrug off the situation, and note there are no plans to exempt any airlines from the ETS in January.

The U.S. also has objected to the EU legislation, arguing it breaches international agreements on airline taxation. The U.S. Air Transport Association has filed a legal case against the EU. Airbus announced last week it had a purchase agreement from an unannounced customer for 10 Airbus A380s. Although Airbus officials would not name the airline, they signaled it is the same customer, also yet officially unannounced, buying 15 Boeing 747-8s. Officials say that buyer is Hong Kong Airlines.