Austrian Airlines: EU should build launch pad for sustainable fuels

Company

• Common goal must be climate-friendly flying at global level
• Funds from environmental levies should be used nationally to develop and promote sustainable fuels
• CO2 package “Fit for 55” should not lead to competitive disadvantages for European companies

The “Fit for 55” package of measures presented today by the EU Commission aims to reduce greenhouse gas emissions by at least 55 percent by 2030. The package sets the course not only in terms of climate policy, but also in terms of industrial policy. In the aviation sector, the package includes a tightening of emissions trading, the introduction of a kerosene tax for intra-European flights and a rapidly increasing mandatory blending rate for the more expensive sustainable aviation fuels (SAF).

For years, Austrian Airlines has been working to reduce the company’s ecological footprint in the long term. The question is not WHETHER to make flying more environmentally friendly, but HOW. Together with the Lufthansa Group, Austrian Airlines aims to halve CO2 emissions by 2030 and to operate in a CO2-neutral manner by 2050.

Regional measures within the framework of “Fit for 55”, such as emissions trading, an intra-European kerosene tax or blending quotas, can lead to a shift of transfer flights to hubs outside the EU. If, for example, a passenger on the way from Stuttgart to Tokyo changes planes in Vienna, a kerosene tax would be imposed on his feeder flight. However, if the passenger changes planes in Istanbul instead of Vienna, no kerosene taxes would apply. Thus, no flight is avoided, but only shifted to the detriment of the environment through longer routes, and also to the detriment of European network airlines, such as Austrian Airlines. “We welcome the European efforts towards more climate protection, also for aviation. However, the measures should not distort competition, otherwise we don’t protect climate but the domestic economy will be harmed to the maximum,” says Austrian Airlines CEO Alexis von Hoensbroech. “The European institutions should not put additional hurdles in the way of domestic aviation, but build the launch pad for the use of climate-friendly sustainable fuels.”

The greatest lever for climate-neutral flying lies in the use of sustainable fuels, which can reduce emissions by up to 80%, which is why a corresponding blending quota is to be welcomed. This will bring demand and thus boost production. “For the planned quota for sustainable fuels, however, a financing mechanism must be found that includes all suppliers equally and does not leave the burden resting on European wings only,” explains Austrian CEO Alexis von Hoensbroech. “By earmarking environmental levies, such as the revenue from stricter emissions trading or from a kerosene tax, for the promotion of sustainable fuels, it would be possible to accordingly compensate for the competitive disadvantage. Airlines that do a lot for climate protection should not be disadvantaged compared to those that do little or nothing,” concludes Alexis von Hoensbroech.

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