Monday, April 30th, 2012

Lots of losers and a few winners from ETS in business aviation

Richard Koe

EBACE is supposed to sum up the big issues for business aviation so it makes sense that the EBAA will invite debate on this year’s launch of the emissions trading scheme (“EU-ETS: Here to Stay Despite the Turbulence – Are You Ready” May 13).

Richard Koe

This month’s Aviation Intelligence Reporter looks into the implications of ETS for biz av. The AIR view is that the industry needs to move fast to be prepared for 2013 trading implementation. Yes, business aviation got a raw deal – it gets the airline one-size-fits-all treatment, despite being a niche of its own, it’s not yet recovered from recession, and after all it generates just 0.4% of global emissions. But ‘clemency’ and ‘private jets’ won’t go hand in hand any time soon, so operators should get their house in order.

Business aviation’s beleaguered defenders have the impression that national governments (and by extension the public opinion they pander to) would simply prefer business aviation to disappear under the weight of ETS and a recent flurry of additional ‘lear jet’ levies.

There might be more than a grain of truth there, but at least ETS exempts aircraft below 5700kg MTOW. This means that most turbo props and very light jets won’t be required to purchase allowances and more importantly won’t be tied up with administration.

This should give a relative boost to the charter sector that does most to expand participation and lower prices across the industry. If the taxi jet market resembles anything like its forecast size in 5 years then the ETS break may have contributed to a rise rather than a fall in overall business aviation activity.

Posted by admin on April 30th, 2012 | Filed in Uncategorized | Comment now »

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