Leading European aviation companies decry carbon tax

Seven leading European aviation companies including British Airways and Virgin Atlantic have giveb a written complaint to political leaders about a recently introduced EU carbon tax.

According to the signatories, the pollution levy threatened jobs and trade. They were concerned about trade-related retaliation by countries not in compliance with the Emissions Trading Scheme (ETS).

The tax is being opposed by both the US and China, who are among 20 others including India.(See: India, 22 other countries move to counter EU carbon tax)

According to Airbus CEO Thomas Enders, the measure was threatening over 1,000 jobs (at Airbus) and another thousand through the supply chain.

EADS chief, the parent company of Airbus, Louis Gallois, last week told reporters that the purchase of planes made by European manufacturers had been suspended because of the levy.

According to an Airbus spokesman who spoke to the Financial Times, the ETS issue which started out as a discussion over environmental legislation was turning into a traded conflict.