Air companies condemn EU over hydrocarbon tax

Airbus and six other European air companies are criticizing leaders of 4 EU states for the hydrocarbon tax, Gazeta.ru reports.

Airbus, British Airways, Virgin Atlantic, Lufthansa, Air France, Air Berlin and Iberia sent a letter to the UK, France, Germany and Spain, warning them about economic repercussions within the framework of the International Civil Aviation Organization (ICAO). The companies state billions of dollars of losses and the need to reduce thousands of workplaces.

The document was addressed to British Prime Minister David Cameron, French Prime Minister Francois Fillon, German Chancellor Angela Merkel and Spanish Prime Minister Mariano Rajoy. It was signed by Safran and German enterprises under the MTU trademark.

China prohibited purchases of Airbus planes due to the hydrocarbon law, resulting in the company’s losing $12 billion. Head of the International Air Transport Association (IATA) said on Tuesday that the law may provoke trade wars. Danish Minister for Climate Martin Lidegaard said on Friday that the EU will keep the law in force for its air space until a solution is found.

The hydrocarbon law was adopted on January 1. First bills will be sent in 2013. Over 20 states, including China, Russia and US, condemn the law. The EU insists that the bill will reduce emissions of carbon dioxide by 20% by 2020. EU authorities say that air companies may increase ticket prices by 4-24 euro.