easyJet: taxation on air travel simply will not work!

Citation

(2007), "easyJet: taxation on air travel simply will not work!", Aircraft Engineering and Aerospace Technology, Vol. 79 No. 2. https://doi.org/10.1108/aeat.2007.12779baf.001

easyJet: taxation on air travel simply will not work!

easyJet: taxation on air travel simply will not work!

In response to the recent publication of a report by the Environmental Change Institute at Oxford University easyJet, one of Europe's leading low-fares airline, is calling for the findings to be put into perspective and for practical solutions to be implemented to deal with the impact of aviation on the environment.

It is clear, airlines still have their part to play in safeguarding the environment, but it is important to put this into perspective - the European Commission's own calculations confirm that aviation accounts for just 3 per cent of CO₂ emissions in Europe.

easyJet states that it takes its environmental responsibilities very seriously and as a result the airline is one of the world's most environmentally- efficient airlines. easyJet flies brand new, quiet and fuel efficient aircraft using the latest technology. With its point to point network and some of the highest load factors in the industry, no resources are wasted and every aspect of the business is efficient.

Calling for greater taxation on air travel is sloppy thinking and risks damaging the European economy as a whole (3.1 million jobs and e221 billion of GDP in the EU-15 are dependent upon aviation, accounting for 8 per cent of Europe's GDP). Aviation is also a key driver for integration with the new Member States and growth under the EU's Lisbon Agenda.

Taxation is a blunt instrument that will only put more money into the pockets of governments, whilst discriminating against the poorest in society, who until recently were priced out of the sky. Crucially, and most importantly, it does not benefit the environment.

A balanced debate is required to ensure practical and workable solutions can be found to address the environmental issues and the EU Emissions Trading Scheme is a key initiative, providing the largest possible proportion of European flights is included.

Applying ETS only to intra-European short-haul travel would only cover 20 per cent of Europe's flying – or 1 per cent of total EU emissions; this would appear to be insufficient and would only represent “tokenism” on the part of the EU. Much greater coverage could be obtained by including ex-EU flights in the scheme of classifying airports as the “installation” rather than airlines, thereby ensuring that every take-off and landing is covered – regardless of the destination of the aircraft.

Any Emissions Trading Scheme must also:

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  Ensure that allowances are being allocated fairly. Airlines must not be given an incentive to do nothing for the next few years – so allowances must not be based on historical usage.

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  Guard against distortion of competition. Environmentally- efficient low-cost airlines operating brand-new, clean and quiet aircraft must not be penalised in favour of inefficient traditional airlines with old, dirty aircraft.

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  Be pan-European. The allocation process must have harmonised rules and administration through the entire EU to avoid favouritism and illegal protection of national champions.

In addition to ETS, significant improvements to the efficiency of the European aviation industry and serious reductions in CO₂ levels could be made with changes to the air traffic management (ATM) system and the stamping out of illegal subsidies given to ailing national airlines.

The nineteenth-century style ATM in Europe is in desperate need of fundamental reform. Airlines are faced with over 30 local air traffic control providers, rendering it impossible to fly the most direct paths between two airports. An estimated 12 per cent of kerosene (and CO₂ emissions) could be saved by optimising air traffic control in Europe.

Whilst the EU must stop turning a blind eye to the increasing direct and indirect subsidies given to national airlines. These subsidies prevent a consolidation of the sector and allow flag carriers to operate uneconomical routes with old, polluting, half-empty aircraft.

With so much potential to improve the efficiency of the European aviation industry, which would reduce impact of operations on the environment, it would be fundamentally wrong to increase taxation to price consumers out of the market, instead of introducing measures to directly tackle the problem.