British Airways Owner Warns Green Fuel Mandates Could Kill European Aviation
The chief executive of British Airways’ parent company has said planned environmental charges on airlines would “kill” the European aviation industry and push up fares. Luis Gallego, the chief executive of International Airlines Group (IAG), has warned the proposed green charges – which are more burdensome for UK carriers – would hike prices for passengers and cause damage to the aviation…
Luis Gallego, the chief executive of International Airlines Group (IAG), which owns British Airways, has warned that proposed green fuel mandates could kill the European aviation industry and lead to higher fares for passengers. These mandates require airlines to increase the amount of sustainable aviation fuel (SAF) they use, currently at 3.7%, which is set to rise to 10% by the end of the decade.
Gallego stated that oil companies producing SAF are not meeting the demand, and European airlines would face a significant cost disadvantage compared to global competitors. He emphasized the need for a level playing field for European aviation, stating that failing to implement this would result in the death of European aviation but not in saving the planet.
This comes after UK ministers held consultations on the green fuel plans, with one official suggesting a common sense approach to aviation fuel would help keep costs down and make holidays more affordable for families. The UK-based firm IAG, which also owns Vueling and Aer Lingus, has seen its pre-tax profit fall by 16% to 3bn in the nine months to the end of September due to soaring fuel costs, triggered by the closure of the Strait of Hormuz following the Middle East conflict.
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