BA owner warns green fuel charges will damage aviation

Summarised from 2 outlets · Updated 9 Nov, 12:08 · Archive

Luis Gallego, chief executive of British Airways' parent company IAG, has warned that planned environmental charges on airlines would harm the industry and raise fares.

Luis Gallego, chief executive of British Airways' parent company International Airlines Group, has warned that planned environmental charges on airlines would 'kill' European aviation and raise fares for passengers. He said the proposed rules requiring higher sustainable aviation fuel use would be more burdensome for UK carriers and create a cost disadvantage against global competitors.

Currently, British airlines' fuel mix must be 3.7 per cent sustainable aviation fuel. Under the proposed rules, this amount would rise next year and is expected to reach 10 per cent by the end of the decade. In consultation, UK ministers are considering rules requiring airlines to buy more expensive second or third-generation sustainable fuel made from non-food waste or by electricity.

Gallego told the Financial Times: 'We have mandates for things that do not exist.' He warned that oil companies producing sustainable fuel are not generating enough supply to meet mandated targets. He said the aviation industry should have 'a level playing field, otherwise we're going to kill European aviation, but we're not going to save the planet.' UK ministers say a 'common sense approach' to aviation fuel rules will enable carriers to keep costs down and make holidays cheaper for families.

How it is being reported

• British Airways owner warns green charges will ‘kill’ aviation industry and hike faresThe chief executive of British Airways’ parent company has said planned environmental charges on airlines would “kill” the European aviation industry and push up fares. Luis Gallego, the chief executive of International Airlines Group (IAG), has warned the proposed green charges – which are more burdensome for UK carriers – would hike prices for passengers [...]City AM · 9 Nov, 11:43
• BA parent says onerous green charges will ‘kill’ Europe’s aviation industryLuis Gallego says planned environmental charges that are more onerous for UK carriers will lead to higher fares and damage the industryFinancial Times · 9 Nov, 05:00

In this story: Luis Gallego · International Airlines Group · British Airways · UK · Europe

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log