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easyJet: taxation on air travel simply will not work!

easyJet Press Release 17/10/06

Posted with express permission of the easyJet Press Office

In response to today?s publication of a report by the Environmental Change
Institute at Oxford University easyJet, Europe?s leading low-fares airline,
is calling for the findings to be put in to perspective and for practical
solutions to be implemented to deal with the impact of aviation on the
environment.

It is clear airlines still have their part to play in safeguarding the
environment, but it is important to put this in to perspective - the
European Commission?s own calculations confirm that aviation accounts for
just 3% of CO2 emissions in Europe.

easyJet takes its environmental responsibilities very seriously and as a
result the airline is one of the world?s most environmentally-efficient
airlines. easyJet flies brand new, quiet and fuel efficient aircraft using
the latest technology. With its point to point network and some of the
highest load factors in the industry, no resources are wasted and every
aspect of the business is efficient.

Calling for greater taxation on air travel is sloppy thinking and risks
damaging the European economy as a whole (3.1 million jobs and ¤221bn of
GDP in the EU-15 are dependent upon aviation, accounting for 8% of Europe?s
GDP). Aviation is also a key driver for integration with the new Member
States and growth under the EU?s Lisbon Agenda.

Taxation is a blunt instrument that will only put more money into the
pockets of Governments, whilst discriminating against the poorest in
society, who until recently were priced out of the sky. Crucially, and most
importantly, it does not benefit the environment.

A balanced debate is required to ensure practical and workable solutions
can be found to address the environmental issues and the EU Emissions
Trading Scheme is a key initiative, providing the largest possible
proportion of European flights is included.

Applying ETS only to intra-European short-haul travel would only cover 20%
of Europe?s flying ? or 1% of total EU emissions; this would appear to be
insufficient and would only represent ?tokenism? on the part of the EU.
Much greater coverage could be obtained by including ex-EU flights in the
scheme of classifying airports as the ?installation?, rather than airlines,
thereby ensuring that every take-off and landing is covered ? regardless of
the destination of the aircraft.

Any Emissions Trading Scheme must also:

· Ensure that allowances are being allocated fairly: airlines must
not be given an incentive to do nothing for the next few years ? so
allowances must not be based on historical usage.

· Guard against distortion of competition: environmentally-
efficient low-cost airlines operating brand-new, clean and quiet aircraft
must not be penalised in favour of inefficient traditional airlines with
old, dirty aircraft.

· Be pan-European: the allocation process must have harmonised
rules and administration through the entire EU to avoid favouritism and
illegal protection of national champions.

In addition to ETS, significant improvements to the efficiency of the
European aviation industry and serious reductions in CO2 levels could be
made with changes to the Air Traffic Management system and the stamping out
of illegal subsidies given to ailing national airlines.

The 19th-century style air traffic management in Europe is in desperate
need of fundamental reform. Airlines are faced with over 30 local air
traffic control providers, rendering it impossible to fly the most direct
paths between two airports. An estimated 12% of kerosene (and CO2
emissions) could be saved by optimising air traffic control in Europe.

Whilst the EU must stop turning a blind eye to the increasing direct and
indirect subsidies given to national airlines. These subsidies prevent a
consolidation of the sector and allow flag carriers to operate uneconomical
routes with old, polluting, half-empty aircraft.

With so much potential to improve the efficiency of the European aviation
industry, which would reduce impact of operations on the environment, it
would be fundamentally wrong to increase taxation to price consumers out of
the market, instead of introducing measures to directly tackle the problem.

- ENDS -

For more information please contact the easyJet press office:

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