What are the wider implications for operators?
The challenges of the ETS for aircraft operators go beyond the immediate legal obligations. The costs for emission allowances will effectively introduce an additional commodity price risk into an operator’s business model, which will require management and become a value driver in the marketplace. This needs to be considered both in short-term and long-term decisions. Additional costs per passenger are estimated at € 1.50 – € 3.50 Aviation in EU ETS – an incentive for efficiency, September 2008 . Whether this can be passed through to customers depends upon the competitive position of the company compared with other operators, and on whether there are alternative modes of transport. Capital replacement cycles mean that major abatement options should be analysed over the long term (wing and fuselage profiles, next-gen engines). Carriers also need to check if contractual relations (especially regarding leasing arrangements) are appropriate for EU-ETS consequences. Purchasing emission righ
