With the Obama administration, U.S. Congress and the world’s governments now united in their opposition to the application of the European Union Emissions Trading Scheme (EU ETS) to international aviation, Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, appropriately ended its private lawsuit against the EU ETS and urged the administration to accelerate its work to reverse this unilateral tax.

“Our legal action was critical in bringing to light that the EU ETS violates international law and is an exorbitant money grab, which are now key points in the governments’ unified opposition to the scheme,” said A4A President and CEO Nicholas E. Calio. “There is a clear path for the United States to force the EU to halt the scheme and protect U.S. sovereignty, American consumers, jobs and international law.”

A4A and its members remain steadfastly opposed to the application of this cap-and-trade tax scheme to U.S. airlines and aircraft operators, and are committed to seeing it overturned. A4A has long maintained that world governments, as signatories to the Chicago Convention, are best situated to enforce international laws and obligations and drive to a global solution within the International Civil Aviation Organization (ICAO).

ICAO has authority to address violations of the Chicago Convention under Article 84 of that treaty, and also is working to complete the global framework for aviation greenhouse gas emissions provisionally agreed at its 2010 Assembly.

A4A and its member airlines are committed to reducing greenhouse gas emissions from aviation and, with fuel-efficiency improvements saving over 3.1 billion tons of carbon dioxide since 1978, have a strong record of improvement.

A4A maintains that the unilateral and extraterritorial approach taken under the EU ETS not only violates international law, but imposes costly policies that siphon away funds the airlines need to continue to invest in technology, operations and infrastructure improvements that bring real environmental benefit.

Image Courtesy of   Walter G Arce / Shutterstock.com

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Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, today commended Congress for its bipartisan leadership in passing the FAA Modernization and Reform Act of 2012, a comprehensive bill that will help make air travel even more safe and efficient for passengers and shippers while avoiding further tax increases for customers and airlines.

“We commend Congress for passing a responsible bill that recognizes that commercial aviation is central to America’s global competitiveness and a key enabler of job growth and U.S. productivity,” said A4A President and CEO Nicholas E. Calio.

“Holding the line on federal aviation taxes and fees paid by airlines and their customers enables carriers to work toward being sustainably profitable, so they can maintain jobs and service to communities and invest in their product. This bill also recognizes that safety is our highest priority and includes several provisions that help us build on our strong safety record.”

• Safety: the bill will further enhance aviation safety by promoting the sharing of safety data by airlines and airline employees with the Federal Aviation Administration (FAA) and establish a risk-based inspection system for aircraft repair stations located overseas.
• NextGen: the bill will help accelerate deployment of the most cost-beneficial NextGen air traffic management system technologies. Specifically, the bill will require FAA to expedite implementation of performance-based navigation procedures at major airports, which will help airlines to further improve on-time performance, reduce fuel burn and aircraft emissions, and mitigate noise.Importantly, the bill also includes performance metrics and deadlines to ensure that air travelers, shippers and airlines realize the benefits of NextGen in an expedited, cost-effective manner.
• Taxes and Regulations: the bill holds the line on aviation taxes paid by passengers, shippers and airlines, which have doubled over the last 20 years and now constitute $61 of a typical $300 round-trip domestic ticket. This is critically important to the economic viability of the airline industry, which has lost more than $50 billion since 2001 and is now facing record-high jet-fuel prices.The bill also ensures that any future regulations governing the air transportation of lithium batteries are consistent with international standards.
• EU Emissions Trading Scheme: the bill reaffirms the US position that the European Union (EU) should not extend its emission trading scheme (ETS) to non-EU airlines, and calls for the US government to use all “political, diplomatic and legal tools” to ensure the scheme is not applied to US carriers. In lieu of the ETS, Congress urges the EU to work with ICAO to develop a global, consensual approach to greenhouse gas emissions.
• Environment: in addition to accelerating the deployment of performance-based navigation procedures, which will help reduce emissions and aircraft fuel burn, the bill strengthens FAA research and development programs in the areas of alternative jet fuel and the use of advanced materials in aircraft.

“A4A and its members deeply appreciate the leadership and the tireless work of Senate Commerce Committee Chairman John Rockefeller (D-WV) and Ranking Member Kay Bailey Hutchison (R-TX), as well as Aviation Subcommittee Chairwoman Maria Cantwell (D-WA) and Ranking Member John Thune (R-SD), in bringing this critical legislation to a successful conclusion.

“We also commend the leadership and tenacity of House Transportation and Infrastructure Committee Chairman John Mica (R-FL), Ranking Member Nick Rahall (D-WV), Aviation Subcommittee Chairman Tom Petri (R-WI) and Ranking Member Jerry Costello (D-IL) who understand well the importance of a strong commercial aviation industry and made this bill and its passage a priority.

“Finally, A4A thanks House Speaker John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV), for removing the roadblocks to getting the bill approved and bringing bipartisan resolution to this much-needed and overdue bill.

“This bill saw many extensions, yet thanks to the leaders in both the House and the Senate, today we have a strong, multiyear bill.”

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