The Chinese government is reported to have blocked an order from Hainan Airlines’ subsidiary Hong Kong Airlines for 10 Airbus A380 aircraft.
Air Transport World reports that the Hong Kong-based carrier had to postpone the order – due to be announced at last week’s Paris Air Show – because Beijing failed to approve the deal, in part to express its disapproval of Chinese carriers’ inclusion in the EU Emissions Trading Scheme starting next year.
Under the scheme, airlines will have to cut CO2 emission by three percent in the first year, and by five percent from 2013. All airlines flying in and out of the EU will have to meet the reduction numbers.
In a recent statement, the China Air Transport Association noted it would urge the Chinese government to “impose much tougher retaliation measures” against the EU over the ETS, which it said could “severely impact” the “friendly cooperative relations between Chinese and European carriers as well as European aircraft manufacturers”.
The organisation estimated that the ETS would cost Chinese carriers US$123.6 million annually
