Northstar

The Indispensable Travel Industry Read Feature Highlight Hong Kong expects another good year for 2012 Vol. 3 Issue 09 | 20 March 2012 | www.travelweeklyweb.com | Published by Travel & Meetings Group, Ten Alps Communications Asia Pte Ltd News Singapore hotel rooms the most expensive in Asia Pacifi c News Page 3 A Lufthansa 380 – similar to the ones on order on Chinese airlines Amadeus: Best IT company, 2012 Air Transport News award EU Emissions Trading Scheme: China suspends Airbus orders China has blocked the purchases of Airbuses – A330s and A380 superjumbos – worth billions, in response to the implementation of the European Unions' Emissions Trading Scheme (ETS). Though Airbus had announced that China had blocked the purchase of 35 long haul A330s and 10 Airbus A380, latest reports have indicated that there is another suspension on the order of 10 more Airbus jets. Though the name of the airlines involved were not released, there has been speculation that the A380s were for Hong Kong Airlines. It is expected that the total sum involved in the suspension would amount to more than US$12 billion. Airbus, which has been badly affected by the action, and chiefs of airlines like British Airways, Lufthansa, Airfrance, Virgin Atlantic, Air Berlin and Iberia – have collectively warned of the dire consequences which threatens more than 1000 jobs at Airbus and another 1,000 in other related industries. French aerospace and defence group Safran and Germany's MTU also reportedly The EU had insisted the tax was necessary to joined in letters, sent to French Prime Minister Francois Fillon, German Chancellor Angela Merkel, Spanish Prime Minister Mariano Rajoy and British Prime Minister David Cameron. All these four countries helped establish Airbus. The EU ETS, implemented on January 1, imposes levy charges for carbon emissions for fl ights in and out of Europe. More than two dozen countries, including India, Russia and the United States have strongly opposed the ETS, saying that it violates international law. European airlines are opposed, not just because it would cost billions to airlines, but because it would spark a trade war. reduce carbon emissions of around 20 per cent by 2020 Carriers will begin receiving bills only in 2013 after this year's carbon emissions have been assessed. EU is insistent that the charges are manageable as carriers need only to add between four and 24 euros ($5.25 and $31.50) to the price of a round- trip long-haul fl ight. A Chinese official to the EU had suggested recently that Chinese airlines would not buy European airplanes as long as the EU insists on including foreign airlines in its emissions trading system (ETS). It was sensible to opt for Boeing instead. However, an official of the Civil Aviation Administration of China had subsequently said that the government won't dictate the carriers' purchases. Page 7

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