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Lufthansa CEO Carsten Spohr has warned that European airways could also be compelled to extend fares and danger shedding site visitors to non-EU carriers due to the brand new mandate for using sustainable aviation gasoline.
The EU final week took an enormous step towards introducing minimal SAF fueling necessities, referred to as ReFuelEU Aviation, which is able to apply from 2025—beginning at an preliminary 2 % mixing combine after which rising through the years to in the end attain 70 % by 2050.
However Spohr mentioned that whereas the method on SAF was proper “in precept,” European airways may lose out as a result of the EU’s rules weren’t “competition-neutral.”
“At the moment, the necessary mixing quotas solely apply inside Europe, together with feeder flights to our hubs,” mentioned Spohr.
“Non-European airways aren’t required to replenish with the sustainable—however costly—gasoline at their hubs. It will make tickets from European airways dearer as a result of no airline can compensate for the extra price.”
Spohr’s feedback have been included in a pre-released copy of a speech he is because of give at Lufthansa’s annual common assembly subsequent week.
He added that increased costs to pay for SAF would “enhance the probability” that passengers would select to make use of connections exterior Europe due to decrease airfares, even when that journey concerned detours.
“Finally, which means that of their present type, these EU rules solely result in a shift in carbon emissions,” mentioned Spohr. “On the identical time, it might be like a subsidy programme for airways exterior Europe, which—on high of all the things else—have considerably worse environmental and social requirements.
“Unfair local weather safety rules put European airways at a drawback. In doing so, they’re harming not solely us but additionally the local weather.”
Spohr added that assist was wanted on this situation from politicians in Brussels, Berlin and different European capitals.
Lufthansa’s CEO additionally revealed that presently solely 3 % of the group’s passengers took benefit of sustainability initiatives, comparable to making flights carbon-neutral and its just lately launched “inexperienced” fares.
Spohr mentioned the group’s carbon-neutral platform, which permits passengers to pay for sustainable gasoline, was “nonetheless utilized by too few passengers” after being launched greater than three years in the past.
“The extra price of carbon-neutral kerosene deters many. For a flight throughout the North Atlantic, the surcharge provides as much as round €400—not everybody can or needs to afford that,” he added.
Initially printed by BTN Europe.
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