A preliminary opinion issued by the advocate general in the European Court of Justice rejected contentions by the Air Transport Association (ATA) that the European Union (EU) is violating the Chicago Convention by unilaterally imposing its Emissions Trading Scheme (EU ETS) which threatens to drive up airline costs when they can least afford it and when they need it to replace ageing fleets.

ATA, who brought the suit to which the Advocate General Juliane Kokott responded, estimates inclusion in the EU ETS would cost US airlines more than USD3 billion through 2020. Estimates provided by the Association of European Airlines have projected emissions charges to be paid by European carriers at over EUR17 billion between now and the end of the decade.

Despite the preliminary opinion and the fact that it is likely to be sustained by the full court, opposition within Europe is growing with the Netherlands Aviation Secretary urging changes or postponement citing the competitive impacts it will have on European hubs.

The failure to build a new runway at Heathrow, its slot restrictions, tax policies and the growth of Middle Eastern carriers who are forging global connections over their Middle Eastern hubs have already put European airlines at a competitive disadvantage. The imposition of the ETS would likely exacerbate this situation.