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India Bucking the EU System

From January 1st, European Union imposed a carbon levy on air travel. In support of this, carriers air carriers submit their emission stats.

In a March statement, India opposed the EU Joint declaration. It appears that the government of india has boycotted the directive and forbidden its carriers to comply under the concept that it is a trade levy in disguise. India follows China, who in February forbade its carriers to comply.

The cost of the measure will add from 4 to 24 euros to the cost of each round trip flight.

Expect to see backlash escalating trade conflict with countries opposing the ETS as governments resist or comply and trade repercussions ensue such as China’s suspension of 12 billion in Airbus orders.

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Ill-Run PIA Approaching EU Banned List

Forty uncertified defects found on PK-734 operated by A310 at Paris on 9 Aug 2011 leads the European Union to declare CAA regulatory control “unreliable.” A ban will likely be imposed in March 2012.

DGAC France has been authorized to perform routine inspections on PIA on behalf of EASA since November and has found and documented problems. Pia’s poorly maintained fleet of old Boeing 747 and A310 fleet is already banned. The supposedly penniless airline is making payments on new Boeing 777s and is arranging financing of 1.5 billion for 5 more, and possible 5 more after that.

Flakey and unreliable scheduling of flights has resulted in bad credibility and lack of confidence in the national airline; and that lack of credibility is trickling down to the financing. As recently as March 2, a flight was delayed over 24 hours, and the scene at the airport was described as pure chaos.