Airlines to pay for emissions

Air Malta, which is trying to avoid bankruptcy through a bold restructuring plan, will have to cater for another burden next year, as it will have to start paying for its emissions like all airlines flying in and out of the EU.

However, although it is too early to calculate the commercial bearing of the EU’s Emission’s Trading Scheme (ETS) on Air Malta, sources close to the airline said the impact should be “limited”.

The European Commission yesterday moved a step closer to introducing this scheme as it decided on the benchmarks on which emissions will be calculated. Brussels said these benchmark values will enable airlines to calculate their free allocation of allowances up to 2020.

One benchmark has been calculated for the trading period in 2012 and another for the trading period starting in January 2013.

The EU executive said that during the first year, 2012, airlines will receive 85 per cent of their required carbon emission permits for free. The share of free allowances will then fall to 82 per cent in the third ETS trading period from 2013-2020.

The aviation industry is regarded as a major global pollutant of greenhouse gas emissions and the Commission wants to bring the industry under control, encouraging it to use the latest technology and cut on waste.

However, many airlines complained that the new system – which will see them trading part of their emissions and buying additional permits if they want to fly longer and develop more routes – will have an impact on consumer prices. Malta was not considered to be among the “most enthusiastic” when the Commission was negotiating this initiative in 2008 as the government argued that airline companies operating from the periphery of the EU, such as Air Malta, would be heavily penalised.

A study conducted by airlines a few years ago found that prices for European flights had to increase by €10 per ticket from 2012.

The fallout on Air Malta has still to be established. “Although it is too early to quantify the financial burden if any, Air Malta operates a young and modern fleet which it utilises efficiently,” a government spokesman said when contacted.

“Furthermore, while rapidly growing airlines are expected to shoulder significant costs due to resultant increases in their emissions, Air Malta has an established route network and is in the process of making its operations more efficient.”

Until now, airlines were excluded from the EU’s emissions scheme. The ETS, in force since 2006, forces member states’ heavy industries to pay for permits, called EU allowances, for each tonne of carbon dioxide they emit into the atmosphere.

The aviation sector is responsible for around two per cent of the world’s carbon emissions. From January 1, 2012, all flights arriving or departing from EU airports regardless of nationality or operator will be included in the scheme.

New Air Malta booking fees

Air Malta will today start charging €10 for online bookings, while it has increased its service charge for those buying their tickets through a call centre or sales outlet by another €10.

The airline said charges per ticket will now be €10 when booking online through www.airmalta.com, when there was previously no charge, and €15 when booking through a call centre and its sales outlets (from the previous €5).

This was the first time the service fees had changed since 2008, the airline said. It explained that these revised rates reflected the new distribution channel strategy being adopted, in line with current airline business models.

Air Malta also announced that as from today, customers who book Saver and Special Offer fares online will be offered the possibility to pre-select seats at a nominal fee of €10 per seat. Customers who book Flexi and Club fares will continue to be offered this service for free.

These changes are part of a wider set of online services that will be announced in the coming weeks and months.