Airlines hit out over Dutch plan to phase out EU fossil fuel subsidies
Airline bosses have criticised a Dutch plan for an EU-wide phaseout of fossil fuel subsidies, saying such a move will be fanciful until there are affordable greener travel alternatives. Ryanair boss Michael O’Leary and Lufthansa CE Carsten Spohr were among European airline executives who said at a briefing last week that train fares remained too expensive to replace air travel, and policymakers’ plans to make aviation more sustainable by cutting support would backfire. The Dutch government announced last month that it spent up to €46.4bn in 2023 supporting the use of fossil fuels, either through direct subsidies or tax schemes that indirectly led to more polluting energies being used. More than €3.6bn went to airlines, as fuel supplied for use in aviation is currently fully exempt from taxation in the EU. Rob Jetten, the Dutch climate minister, told the Financial Times that reforming the tax system and cutting subsidies was “crucial” to delivering the clean transition, and that governments should “redesign the rules of the market”. He added, however, that fossil fuel subsidies, particularly ones that resulted from international agreements such as for airlines and shipping, “need to be tackled from the EU level”. But O’Leary, the Ryanair boss, said: “Until you have some affordable alternative that you can offer to voters and to consumers across Europe, it’s all just pie in the sky.” Ourania Georgoutsakou, managing director of the industry body Airlines for Europe, added that increasing fuel taxes for airlines would increase costs which “at some point will impact the passenger”. Fuel is one of the single biggest expenses for airlines, and accounts for about 25% of their operating costs. Aviation is also among the toughest sectors to decarbonise, with alternatives to jet fuels still at an embryonic stage. The airline industry last week reiterated calls for more support to increase production and lower the cost of so-called sustainable fuels, which are significantly less polluting than kerosene.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-10-17/general/airlines-hit-out-over-dutch-plan-to-phase-out-eu-fossil-fuel-subsidies
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Airlines hit out over Dutch plan to phase out EU fossil fuel subsidies
Airline bosses have criticised a Dutch plan for an EU-wide phaseout of fossil fuel subsidies, saying such a move will be fanciful until there are affordable greener travel alternatives. Ryanair boss Michael O’Leary and Lufthansa CE Carsten Spohr were among European airline executives who said at a briefing last week that train fares remained too expensive to replace air travel, and policymakers’ plans to make aviation more sustainable by cutting support would backfire. The Dutch government announced last month that it spent up to €46.4bn in 2023 supporting the use of fossil fuels, either through direct subsidies or tax schemes that indirectly led to more polluting energies being used. More than €3.6bn went to airlines, as fuel supplied for use in aviation is currently fully exempt from taxation in the EU. Rob Jetten, the Dutch climate minister, told the Financial Times that reforming the tax system and cutting subsidies was “crucial” to delivering the clean transition, and that governments should “redesign the rules of the market”. He added, however, that fossil fuel subsidies, particularly ones that resulted from international agreements such as for airlines and shipping, “need to be tackled from the EU level”. But O’Leary, the Ryanair boss, said: “Until you have some affordable alternative that you can offer to voters and to consumers across Europe, it’s all just pie in the sky.” Ourania Georgoutsakou, managing director of the industry body Airlines for Europe, added that increasing fuel taxes for airlines would increase costs which “at some point will impact the passenger”. Fuel is one of the single biggest expenses for airlines, and accounts for about 25% of their operating costs. Aviation is also among the toughest sectors to decarbonise, with alternatives to jet fuels still at an embryonic stage. The airline industry last week reiterated calls for more support to increase production and lower the cost of so-called sustainable fuels, which are significantly less polluting than kerosene.<br/>
