In an unpopular decision worldwide, the European Union has decided that its Emissions Trading Scheme (ETS) will not cease. Airlines fear that retaliatory measures by other countries will cause a trade war, with flights taxed more than once by different authorities, which will cost the customer enormously.

Europe claims that it is prepared to be flexible within its framework, but completely dropping the scheme is out of the question.

Speaking at the Aviation Leadership Summit at the Singapore Airshow, Siim Kallas, vice president of the European Commission said: “Europe will implement its system with difficulties, with conflicts, with court cases, whatever, the system will be introduced. We’re not trying to dominate the world. The EU has asked for years and years, there must be a world solution for carbon emission.”

He added: “We are serious about negotiating and we have people who are active in finding solutions.”

Under the scheme, airlines will be allowed a certain amount of carbon emissions, but over a certain limit they will then have to purchase ‘carbon credits’, if they do not cooperate, they will face hefty fines.

Chinese airlines have already been banned from joining the scheme by the State Council, with America and India also voicing their opposition. Representatives from at least 27 countries are due to meet in Moscow next week to discuss the situation and possible retaliation.

Singapore Airlines CEO Goh Choon Phong said an airline flying direct from Singapore to Europe pays more than an airline flying to an intermediate point and then on to Europe, which is one of the reasons for opposing the scheme.

Asia Pacific Airlines said  it fears that there will be a trade war between continents, which will leave airlines stuck in the middle of the battle.

Etihad Airways is the latest airline to introduce a new charge to its passengers to cover the cost of the ETS, charging $3 per passenger for flights into and out of Europe.

James Hogan, Etihad Airways president and chief executive officer said: “As an airline we are strongly opposed to the unilateral measures imposed by the European Union on our flights into and out of Europe, especially as they include areas outside European airspace.

“We have invested many millions of dollars to ensure we operate a young and highly efficient fleet but are still being penalised.”

Despite this opposition, many governments are in fact in favour of a carbon emission trading scheme, however they believe it should be worldwide and not imposed by the EU.

Chinese airlines have been banned from complying with the European Union’s Emissions Trading Scheme (ETS), and are also banned from raising air fares or adding new charges to cover the cost of the scheme.

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.

The European Union ruled that all airlines flying to and from Europe will have to pay a new emissions tax which started on 1st January this year. However, this has caused concern from international airlines not based in the EU, and China’s biggest airlines are the first to declare that they will not pay the tax, with the United States and Russia also strongly opposed to it.

The China Air Transport Association (CATA) told the BBC that its members would not cooperate with the Emissions Trading Scheme and pay the tax. CATA represents airlines including air China, China Southern Airlines, China Eastern and Hainan Airlines. If they don’t comply they could be fined or even banned from flying to EU countries.

China is considering retaliatory measures against EU airlines if any of its airlines are forced to pay the tax.

This seems like an almost impossible situation, how do you think this should be resolved? Should non-EU airlines be charged the tax or should the EU change their decision in order to save retaliation against our own airlines?

Happy New Year to all our readers! Before we move on to this year’s news, here’s a round up of some of the biggest stories we covered on this blog in 2011, it certainly was an eventful year!

January started with the troubled BMI threatening to withdraw its Heathrow – Glasgow route after passenger charges at Heathrow were raised (this was confirmed a month later). Ryanair returned to Manchester with four new routes. And the political troubles in Egypt disrupted flights.

Spiraling conflict in Egypt caused complete cancellation of routes to popular holiday destinations in February. Meanwhile, Which? launched a super complaint on airline card fee charges,the cost of Qantas’ engine troubles were revealed, and airlines flying from the UK finally started to show clearer air fares.

March brought faster flight times under a deal signed by traffic controllers. But by far the biggest news of the month was the huge tsunami which hit Japan and led to re-routing of flights to avoid possible radiation risk, and advice to leave Tokyo.

A Skyscanner survey found Spain back in favour for British holidaymakers in April.

In May Belfast Airport started to charge for going for a cigarette break, and the ongoing battle between Unite and British Airways was finally settled!

More natural disasters happened in June with violent aftershocks in Christchurch, New Zealand and volcanic eruptions in Chile.

The News of the World phone-hacking scandal broke in July with airlines withdrawing their advertisements as a result.

In August research revealed the use of smartphones were ruining people’s holidays.

The Rugby World Cup was held in New Zealand in September, where Wales’ hopes were dashed.

The first biofuel passenger flight took place in October, however green campaigners claimed it wasn’t as environmentally friendly as everyone thought.

Europe announced a ban on body scanners at airports in November, but the UK decided to go against the decision.

Finally, December saw 150mph winds hit parts of Scotland, which is where we are now at the start of 2012 as tremendous winds continue to batter the UK once more.

So, what travel news is in store for 2012? Keep up to date here!

Katla picture taken by Flickr user leszekwasilewski

The Icelandic volcano, Katla, could be set to have its most powerful eruption in nearly a century, according an expert.

It has been monitored since a disturbance back in July, and with it’s 6.2 mile crater, an eruption could cause severe flooding if it melts the glaciers above it, the BBC has reported.

Ford Cochran, National Geographic expert on Iceland said: “This difficulty is very apparent when you compare the last two eruptions in Iceland – Eyjafjallajokull in 2010 and Grimsvotn in 2011.

“Eyjafjallajokull, which brought air traffic to a halt across Europe, was a relatively small eruption, but the unusual chemistry of the magma, the long duration and the weather pattern during the eruption made it very disruptive. ”

“There have been more than 500 tremors in and around the caldera of Katla just in the last month, which suggests the motion of magma. And that certainly suggests an eruption may be imminent.”

Iceland is unique in that it straddles two tectonic plates. The last Katla eruption in 1918 caused a huge glacier meltdown, sweeping icebergs into the ocean, producing huge amounts of water.

It’s a hot issue among airlines as previous articles have shown, so now Air France have waded in to the green flight issue to claim that it has completed the world’s lowest CO2 emissions flight.

The commercial 80-minute flight from Toulouse to Paris emitted only half the greenhouse gases of other flights of the same length, according to the airline. It achieved this by using a mix of sustainable biofuels, optimised flight procedures and reduced onboard mass.

It was powered by a mix of conventional kerosene and biokerosene made from hydrogenated used vegetable oils. The airline claims this is a renewable, sustained energy source without the environmental or social impacts linked to agricultural biomass.

Other fuel-efficient measures taken during the flight included taxiing with one of the two engines shut down, climbing and descending continuously rather than in steps, and taking the shortest possible flight path. The aircraft was also fitted with a lighter seat, now used across the Air France short-haul fleet.

Whether for promotion or a genuine interest in cutting carbon emissions, airlines are starting to pull their finger out with technology relating to greener fuel sources. Last week saw the first passenger flight using a mix of normal and biofuel and this week sees the announcement by Virgin Atlantic to develop a new low carbon aviation fuel with half the carbon footprint of the standard fossil fuel alternative.

The airline is developing the fuel with LanzaTech. The fuel will use waste gases from industrial steel production which will be captured, fermented and chemically converted using Swedish Biofuels technology for use as a jet fuel.

“The revolutionary fuel production process recycles waste gases that would otherwise be burnt into the atmosphere as carbon dioxide,” said Virgin.

LanzaTech estimates that its process can apply to 65% of the world’s steel mills, and could be extended to processing and chemical industries, which is a brilliant commercial prospect.

It will take 12-18 months of development before the first trial flight, then the airline plans to use the fuel on flights from Shanghai and Delhi to London Heathrow within three years.

Virgin president Sir Richard Branson, said: “This partnership to produce a next generation, low-carbon aviation fuel is a major step towards radically reducing our carbon footprint, and we are excited about the savings that this technology could help us achieve.

“With oil running out, it is important that new fuel solutions are sustainable, and with the steel industry alone able to deliver over 15 billion gallons of jet fuel annually, the potential is very exciting.

“This new technology is scalable, sustainable and can be commercially produced at a cost comparable to conventional jet fuel.”