Airlines hit out at jet-fuel tax burden from Europe’s green deal

Leading airlines attacked Eu plans to impose a region-wide kerosene tax as part of a sweeping new environmental strategy, saying investment in sustainable fuels and electric planes would be more effective in reducing carbon emissions. Chiefs of four of the region’s five biggest carriers raised their concerns with EU Transport Commissioner Adina-Ioana Valean in Brussels Tuesday, with Ryanair Holdings Plc’s Michael O’Leary leading criticism of measures set to be unveiled in the so-called Green Deal package this week. Higher duties will do nothing for the environment while reaping “untold economic damage,” O’Leary said, describing the policy as a government tax grab “dreamt up here in Brussels or designed by cyclists in Holland.” He spoke after meeting with Valean as chairman of the Airlines for Europe lobby group alongside the heads of Lufthansa, IAG and EasyJet. Airlines are pushing back against the kerosene levy as the EU moves to overhaul energy-taxation laws unchanged since 2003 as part of a commitment to reducing greenhouse-gas emissions to net zero by mid-century. Aviation finds itself in the firing line as the auto industry and other sectors make strides toward slashing CO2 output, and with many fuels long subject to taxes. A4E said in a statement that an incentive-based system coupled with increased investment in sustainable fuels would be a more positive way forward, together with an acceleration of the Single European Sky project, which it estimates would by itself cuts carbon emissions by 10%.<br/>