Airlines in Europe may need to buy carbon permits or pay fines after data showed the carriers’ emissions in 2012 exceeded their allocation of free allowances by about 30 percent, according to Bloomberg New Energy Finance.
The biggest expansion of Europe’s carbon market is pitting Deutsche Lufthansa AG against Japan Airlines Corp. and Delta Air Lines Inc. in a contest for free permits as traders struggle against computer hackers.
Airbus SAS and Rolls-Royce Group Plc began investigating why an engine on a Qantas Airways Ltd. A380 superjumbo exploded in mid flight, forcing an emergency landing in the worst incident since the aircraft began service in 2007.
Deutsche Lufthansa AG is bidding to stop Dubai-based Emirates serving more German cities as part of a campaign to undermine its rival’s business model, Tim Clark , the Middle Eastern carrier’s president, said in an interview.
A shutdown of European airspace that cost carriers $1.7 billion following a volcanic eruption in Iceland was exacerbated by a lack of research into the effects of ash on jet engines and over-reliance on computer modeling.
Emirates, the biggest international airline, is rattling rivals in Europe and Asia with a growth splurge that may be as game-changing for long-haul carriers as the expansion of Ryanair Holdings Plc and Southwest Airlines Co.
Airlines will be the second-largest sector in the European Union’s emissions-trading system, after power generators, when aviation joins next year with a carbon- dioxide limit of 213 million metric tons.
Boeing Co. 747 jumbo jets are being brought out of desert storage as surging bookings spur carriers including British Airways Plc and Cathay Pacific Airways Ltd. to return their biggest planes to traffic.