Brussels, 02/06/2008 (Agence Europe) - The Association of European Airlines (AEA) is opposed to the European Parliament environment committee's proposals that aim to introduce sanctions for non respect of the European Emissions Trading Scheme (ETS) by civil aviation (see other article). According to the airlines, whose senior directors met on Thursday 29 May with Matthias Reute, Director General of DG TREN, the ETS is no longer relevant since its adoption in December 2006 (EUROPE 9332). As it currently stands, such a system would generate costs of €15bn a year for AEA member companies. This cost is disproportionate when European aviation emissions only account for 0.5% of global CO2 emissions (around 3% in Europe). The AEA considers that if global aviation is not included in the emissions quota system, the European proposal will be ineffective. The AEA is proposing to speed up implementation of the Single Sky programme instead (the new air traffic control system). The modernised version of this system is expected to be adopted on 17 June and the AEA believes that its advantages will be much more perceptible (12% of emissions quotas at least and €3bn in annual savings). Chairman Peter Hartman, CEO of KLM, and a member of the AEA said: “The ETS was designed at a time of $40 (per barrel) oil”. He added that “we now have $130 oil - and it could go higher… at a time of 6% industry growth; we now have 3% growth”. Hartman also stated: “We welcome the sustained efforts of Dr Ruete and DG TREN in support of this vital project, but we do not see the same enthusiasm and commitment from the member states who continue to manage European airspace as a patchwork of national associations of exclusive resources”. According to Hartman, the Single Sky will “reduce the emissions problem, at the same time as freeing resources for us to invest in a genuine low-carbon future”. Addressing the Commission, the KLM directors clearly opposed the ETS and said that it was a “clumsy political compromise which will generate huge costs that neither airlines nor their passengers can afford”. The AEA believes that the combination of crude oil prices, industrial recession, rising inflation and declining income margins could lead to losses in the sector in 2008 (in 2007, AEA members had net profits of €3.7bn). (A.By)