Air Malta could see its running costs go up next year through the introduction next January of new EU rules aimed at forcing the aviation industry to lower its carbon emissions as part of the EU strategy on climate change.
A spokesman for the government said it was too early to quantify the financial effect the Emissions Trading Scheme (ETS) will have on the national carrier but predicted it would be “limited”.
“Air Malta operates a young and modern fleet which it utilises efficiently,” the spokesman said.
“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 further adding efficiency to its operations.”
Asked whether the new rules will have an impact on flight prices, the government spokesman did not rule out increases but said “it is up to individual operators to make such decisions based on their commercial strategies”.
Recent progress in implementing the Single European Sky airspace reforms will also mean that all operators in the EU will benefit from more efficient air traffic management zones, which will in turn reduce flight times and aircraft emissions.
“All these should limit the effects on Air Malta’s running costs,” the spokesman said.
As Air Malta is on the point of undergoing major restructuring following its near financial collapse, requiring the EU’s green light for rescue aid, the new rules are being considered another burden it will have to carry next year. Until now, airlines, considered to be among the biggest polluters, were excluded from the EU’s emissions scheme. The EU’s ETS, in force since 2006, forces the 27 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.
All flights arriving or departing from EU airports regardless of nationality or operator will now be included in the scheme.
As all other airlines, Air Malta will be allocated 85 per cent of its permits for free while the other 15 per cent, if needed, will have to be bought either from the international markets or from industries holding such permits.
Malta was not among the most enthusiastic when the Commission was negotiating this initiative in 2008, arguing that airline companies operating from the periphery of the EU would be heavily penalised.
However, it now seems its resistance has mellowed. The spokesman said: “The scope of the inclusion of aviation within the EU Emissions Trading Scheme is to mitigate the impacts of carbon emissions resulting from aviation, which in the EU have almost doubled since 1990. This will have long-term benefits on the air quality of Europe, including Malta, and the health of its citizens.”