Europe's emission scheme may cost Emirates $1billion

Europe's emission scheme may cost Emirates $1billionThe controversial European Union Carbon Emission Scheme is going to significantly affect Dubai's flagship airline-Emirates, having 24 per cent operations in Europe. The airline, according to rough estimates, is likely to suffer a loss of up to $1 billion during the first eight to ten years of the scheme. The airline, operating dozen of routes to European countries, would have to pay fees for all flights to and fro from Europe.

Andrew Parker, senior vice-president of Public, Industry, International and Environmental Affairs, said, "Europe is very large in terms of our global network. This will have a very significant financial impact on Emirates. We'll have to pay tens of millions of dollars in the first few years, which will increase to hundreds of billions of dollars.”

The new scheme makes it mandatory for the airlines to buy permits for 15 per cent of the carbon emissions they produce during the flight. Every airline producing one ton of carbon dioxide will have to pay fine up to Dh520.6. The scheme drew wide spread criticism from airlines operating across the region.