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China airlines will refuse to pay any charges under the European Union's new carbon trading scheme. But other Asia Pacific carriers, which are already battling a weak travel market, are likely to pass on the extra cost to passengers.
The China Air Transport Association, or CATA, says China will not cooperate with the European Union on the Emissions Trading Scheme. Therefore, Chinese airlines won't impose surcharges on customers relating to the emission tax. CATA represents the country's four major airlines: flag carrier Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines.
EU's carbon trading program was launched in 2005 as one of the bloc's major efforts to combat climate change. From January 1st this year, all airlines using EU airports are included in the cap-and-trade scheme. ETS has triggered much opposition and criticism among international carriers. Chinese airlines and Australia's Qantas Airways would take legal action against EU's move.