Hong Kong Airlines could cancel an order for 10 Airbus superjumbo A380 jets, a report said yesterday, as Chinese opposition to the EU’s airline carbon emissions fee intensifies.
Beijing has banned its airlines from complying with the EU scheme, which was imposed from Jan. 1, although no airline will face a bill until next year.
UNDER PRESSURE
Hong Kong Airlines, a subsidiary of Chinese carrier Hainan Airlines, said it was under pressure to cancel the acquisition — reportedly worth about US$3.8 billion at list prices — following China’s decision.
The airline might review its fleet expansion plan if the order is dropped, the newspaper report quoted a source from the firm as saying.
The 10 jets were intended to serve its European and North American markets.
NO CHANGE
Hong Kong Airlines could not be immediately reached for comment. A Singapore-based spokesman for Airbus said: “there is no change to the status of the order” at the moment.
The European aircraft manufacturer has reportedly said it plans to deliver the first A380 to Hong Kong Airlines in 2015.
OPPOSED
China was among more than two dozen countries including India, Russia and the US that oppose the EU scheme, which is imposed on airlines taking off or landing in Europe.
The EU has said the carbon tax will help the 27-nation EU achieve its goal of cutting emissions by 20 percent by 2020 and that it would not back down, despite claims the charge violates international law.
EXTRA COSTS
China has said it fears its aviation sector will have to pay an additional 800 million yuan (US$125 million) a year on flights originating from or landing in Europe, and that the cost could be almost four times higher by 2020.
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