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The European Union’s Emissions Trading Scheme (EU ETS), which now affects almost 500 passenger airlines, will have a long-term impact on ticket prices. “In past year, we have invested in the consultancy and processes to be able to comply to new standards. We are happy to say, that Estonian Air is fully prepared for the new ETS Scheme,” said Tero Taskila, the CEO of Estonian Air. “The airline has gone a great length to reduce its emission output by investing in latest aircraft and engine technology. Our pilots can perform more safe and fuel efficient operations than ever before. Despite all this, the new costs from Emission Trading Scheme will occur,” added Taskila.
EU has estimated that airlines would need to increase ticket prices 6-9 Euros per flight segment in order to recover the additional costs. This would mean that return ticket prices would increase 12-18 euros in Europe when the ETS scheme becomes in force.
“Estonian Air is committing itself to provide carbon neutral growth by 2020. This means, that the airline will keep on investing in flight equipment, processes and people to reduce the emissions. The other big element in helping reducing the emissions is the aviation infrastructure. Air Navigation, Airport Operations etc. will have to become more efficient in future for us to offer lower emissions per flight. We are also looking at flying using alternative fuel, but it is pity that ETS scheme does not provide any benefits for flying with less carbon intensive fuel. This puts the airlines in difficult position, because the opportunity to invest ETS money to alternative fuel sources would have made a real direct impact to environment, but now we are just paying ETS taxes, without seeing how it is used to enhance the environmental impacts,” said Taskila.
AS Estonian Air, Estonia’s national carrier, provides both business travellers and tourists direct air link from Estonia to European cities. Estonian Air is the biggest operator at Tallinn Airport.
Estonian Air focuses on improving the connection between Estonia and the rest of the world with the aim of increasing competitiveness as a network carrier hub. In 2012 Estonian Air will increase flight frequencies and open new destinations in European’s most important cities as well as regional centres in Scandinavia.
Estonian Air flies to 25 destinations in CIS, Scandinavia and Europe. The airline has recently announced new destinations for next summer, such as Helsinki, Riga, Jyvaskyla, Hannover, Vienna, Venice, Kokkola/Pietarsaari, Joensuu, Kajaani and Tbilisi.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
