The Civil Aviation Administration of China issued a directive, authorized by the State Council, to notify all domestic airlines of the ban. A statement on the State Council’s website said: “Without the approval of relevant government departments all airlines in China are prohibited from participating in the EU’s emissions trading scheme.”

It added: “China will consider adopting necessary measures to protect the interests of Chinese individuals and companies, pending developments.”

China is not alone in its opposition to the scheme, the US, Russia and India are also against it; with the US Congress expected to pass a bill to formally oppose the scheme in the next few weeks.

It is estimated that Chinese airlines would have to pay 800 million yuan ($125 million) this year towards the scheme. This figure could be up to four times higher by 2020 as Chinese flights to and from Europe increase.

However, the EU ambassador to China, Markus Ederer, said that with free credits taken into account, the added cost per passenger on a flight from Beijing to Brussels would be only 17.5 yuan or 1.9 euros.

“I leave it to you to make a judgment on whether this is too much for saving the Earth, combating climate change and making headway together,” he said.

Meanwhile, some foreign airlines have started to include the cost in their air fares. US carrier Delta has added a $6 surcharge for return flights between the US and Europe, and Germany’s Lufthansa indicated it would raise its fuel surcharge.

There are also some analysts which say that Chinese airlines may actually pay the tax so as to avoid damaging business in Europe and to keep flight routes open.

There is likely to be poor visibility and freezing fog from 18:00 hrs on Sunday, with as much as 15cm of snow covering the whole of the southeast.

Heathrow chief operating office Normand Boivin, said: “This decision ensures that the greatest number of passengers can fly with the minimum amount of disruption. It also means that those passengers whose flights are cancelled will know in advance, and can make alternative arrangements or rebook in relative comfort.”

Gatwick Airport is also warning of possible disruptions to schedules on Sunday, and will update on their Twitter feed (@Gatwick_Airport).

Details of flight cancellations will be published by British Airways later today, and Virgin Atlantic are offering passengers to option of  re-booking travel for next week.

So far, BAA has sold Gatwick and is in the process of selling Edinburgh, but lodged the appeal to argue that Stansted did not serve the same market as Heathrow (which it also owns), therefore it was not anti-competitive to operate both. However, the Competition Appeal Tribunal rejected BAA’s argument.

Ryanair, which was in favour of the ruling, said that BAA had doubled passenger charges since the first ruling, and as a result, reduced passenger numbers from 24m to 18m during that time.

Ryanair’s head of communications Stephen McNamara said: “During this four year period Ferrovial (BAA’s parent) and BAA Stansted have doubled passenger charges, slashed traffic and have now announced that BAA will pay a divided of €240m to Ferrovial and its other shareholders in 2012.

“Ferrovial and the other owners of Stansted are unfairly enriching themselves at the expense of UK passengers/visitors who are suffering higher charges and third-rate service at Stansted while the CAA’s “inadequate” regulatory regime does nothing to protect airport users.”

BAA said it would consider the ruling carefully before making any official comment.

It’s Parent, AMR, had filed for bankruptcy in November and said it needs to cut staff costs by 20%, restructure debt, aircraft leases, and ground older aircraft.

It hopes to start negotiations with unions shortly as it also plans to change contracts, health benefits and pensions. Unions have responded by saying that the plans are worse than expected and they plan to fight the proposed changes.

In a letter to employees, chief executive Thomas W Horton said: “We are going to use the restructuring process to make the necessary changes to meet our challenges head-on and capitalise fully on the solid foundation we’ve put in place.”

Options are being offered by UK based low cost airlines, Easyjet and Ryanair to passengers hit by the cancellations. Spanair also said it was working with Vueling, Iberia and Air Europa to find alternatives for passengers.

The airline made the decision to cancel flights when applications for government-backed loans fell through and talks with Qatar Airways about taking a stake in the company ceased.

The airline said it was finalizing an agreement with IATA to get refunds for those with tickets that had yet to travel; and a statement on its website advised customers with reservations to contact their credit card company, insurance company or travel agency.

The Spanish government says it is taking legal action against the airline for suspending its flights without proper warning, a case which could result in a 9million euro fine.

Spanair was the country’s fourth largest airline, and this situation has led to suggestions that Europe’s debt crisis may spark airlines from the Mediterranean to the Baltic to consider mergers or risk failure.

The Etihad Flight EY045 to Dublin veered off its line in dense fog as it prepared to take off from the southbound runway at 3.19am. The Airbus A330-200 was carrying 208 passengers and crew, but none were injured, however there was some damage to the aircraft’s tyres.

According to flightstats.com, at least 35 flights were cancelled and 150 were delayed by over an hour.

China has already threatened legal action and declared it will not cooperate with the scheme. The most recent opposition has come from India, who has warned retaliatory measures are being considered. A meeting between delegates from the countries against the ETS is to be held in either New Delhi or Moscow in the near future, the result of which could affect flights to hundreds of destinations.

Chris Goater, a spokesman for the International Air Transport Association (IATA), said: “Retaliatory measures have been mentioned, and they must be avoided. It could result in a patchwork of different taxes on aviation, with airlines being taxed by two or three different governments. Airlines already have incredibly thin profit margins, so they could certainly result in higher air fares.”

The cost of the tax is being passed onto customers, as this month, Ryanair introduced a fee of 21p (€0.25) per person per flight to cover the cost of the ETS. A spokesperson for the airline, Stephen McNamara, warned that if other airlines hold off doing this, then they will be forced to raise their prices sharply when they finally do, which will impact more so on customers.

Lufthansa said it expects the scheme to cost it around £109 million this year, and has increased its fuel surcharge on European and long-haul flights by £2.50 and £8.40 respectively.

Flights have become much more expensive already with the introduction of the Air Passenger Duty Tax, billed as an environmental tax when it was introduced in 1994. There are calls for this to be lowered to offset the new ETS.

What do you think about the ETS? Please leave comments in the box below.

Ryanair is advising passengers to check its website for information as it might have to cancel all flights to and from Brussels Charleroi Airport.

“If we are forced to cancel flights a list of affected flights will be published on our homepage on Friday 27th January,” it said.

Eurostar announced this morning that services to and from Brussels will be cancelled from 22:00 CET on 29th January to 22:00 CET on 30th January. Trains will only run to and from Lille Europe station, but there will be a limited coach service from there to Brussels Midi stations, however these are likely to be very busy.

Eurostar will allow exchanges free of charge regardless of ticket conditions, but subject to availability.

Most fixed charges will be around £14 for a non-stop domestic flight, doubling on a one-stop flight. The new rules mean that a truer price will be shown on advertisements.

Passengers will also be allowed to cancel their reservation within 24 hours if they make their booking at least a week before departure,  without incurring a charge.

A lawsuit is pending in the US Court of Appeals for the District of Columbia as some airlines challenge the US Department of Transport over their decision.

The panel is expected to provide oversight and advice on the CAA’s regulatory approach, and will be  sufficiently independent to hold the CAA to account and act in consumer’s interests.

CAA chair Dame Deirdre Hutton said: “The panel will provide a consumer perspective on all aspects of the CAA’s work. But its main focus will be on how regulation affects the everyday passenger experience.

“We want the panel to shine a light on the passenger experience of air travel and suggest practical solutions to problems they identify.”

The successful applicant will be expected to play a significant part in shaping their role and that of the panel, which will consist of seven consumer and aviation experts.