The airline industry, after having gone years of struggle with factors that hurt the profits of the airlines, felt another huge boulder on their shoulders when the European Union implemented the EU Aircraft Emission Law.
The Emission Law states that airlines with aircrafts flying over EU airspace had to pay fees for the carbon emissions that the aircrafts emitted. The law has been challenged by many airlines and country governments since its implementation. Some airlines have already started paying the emission fees, but others are still holding out hoping for a resolution to the crisis.
The US Congress announced recently that they would formally express their opposition to the EU Aircraft Emission Law. The situation is expected to create tensions in international trade relations.
The bill opposing the law is expected to go through in the following weeks as both the US Congress and Senate have agreed to pass the bill.
Although countries like the US, China and India have opposed the law, the European Union expressed that any congressional action to oppose the law may lead to trade fight.
The US administration is aiming for the EU to back down and negotiate another policy at the United Nations. International carriers are still having huge problems with the rise in fuel costs so US planning measures to pressure Europe into standing down and discuss other alternatives.
Most of the US international carriers like Delta, US Airways, United Airlines, and American Airlines have routes to Europe and have had to increase fares in order to cover the costs of the taxes imposed by the EU.
The US administration is weighing different strategies in order to force Europe to reconsider their policy. A senior official of the administration said “we are contemplating a wide range of possible steps that we could take, or actions that we might take.”
As a lot of airlines from countries around the world are affected with by Europe’s carbon emission policy, the world is now seen to be waiting on how the US will react to the situation. The US airline industry is one of the most mature industries and the US also has deep relations with Europe.
Talks between the US and Europe are underway, however, the US is still planning retaliatory measures. “The EU is charging big money and then we start charging them big money. Unless there’s an endgame that could be difficult’” said and industry official involved with the talks with Europe.
Any retaliation of the US to influence Europe will have a painful impact on the major couriers in Europe. This may happen though industry analysts say that it would likely not disrupt any services.
Other countries are hoping that there will be a diplomatic solution to the problem. The EU has said that they have always been willing to find a solution. Hopefully a diplomatic solution will be found retaliatory measures by the United States will not have to happen
The EU is charging big money and then we start charging them big money.