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IPFS News Link • New World Order

Airline industry split widens over EU carbon 'tax' row

A split widened within the aviation industry Tuesday over EU charges for carbon emissions, as Europe's low-cost carriers accused Chinese and US rivals of "gunboat" diplomacy against the system.

A day after China barred its airlines from complying with what many consider a tax, the head of the International Air Transport Association (IATA) warned that several nations view the EU scheme as an "attack on sovereignty".

"Non-European governments see this extra terrestrial tax as an attack on their sovereignty," International Air Transport Association (IATA) director general Tony Tyler said in a speech to the European Aviation Club.

Airlines have denounced the system as a new tax and warn that it would cost the industry 17.5 billion euros ($23.8 billion) over eight years. The IATA claims to represent 84 percent of global passenger and cargo traffic.

But the head of the European Low Fares Airline Association, who claims to account for 43 percent of flights within the EU, said the United States and other opponents should work harder to develop their own plans to reduce harmful emissions -- which would then trigger exemptions.