22 Dec 2011

Airline emissions tax upheld

6:52 am on 22 December 2011

Air travellers to Europe are likely to pay more after the European Court of Justice found that plans by the European Union to levy an emissions tax on airlines are valid.

The decision means all airlines flying to and from the 27 members of the EU, which include Air New Zealand, will face a tax on emissions from the start of next year.

Airlines will now be subject to an emissions trading system, which is used to charge industries such as oil refineries, power stations and steel works for carbon dioxide emissions.

Air New Zealand, along with American and Asian carriers, opposed the move and argued the charges violate climate change and aviation pacts.