27-Jun-2011 9:46 AM

Hong Kong Airlines' A380 order in doubt due to EU ETS dispute

Hong Kong Airlines, which stated it would announce an order for A380 equipment at the Paris Air Show, reportedly failed to progress with the agreement, as China blocked the order in protest against Europe’s plan to bring international airlines into its emissions trading scheme from 01-Jan-2012 (Financial Times/Reuters/Gulf Times/Handelsblatt, 24-Jun-2011). Airbus CEO Tom Enders had previously expressed concern to the EU climate commissioner, Connie Hedegaard, that it was “madness to risk retaliation” from such influential players as China over the issue. Hong Kong Airlines is also reportedly behind an order for 15 B747-8s, which was attributed as being for an "undisclosed customer". Hong Kong Airlines is 46% owned by HNA Group, the parent of Hainan Airlines Co Ltd. The A380 agreement is reportedly in the Airbus order book, although the signing ceremony was reportedly cancelled due to uncertainty regarding the order. Aircraft purchases from Chinese airlines require Chinese government approval. 

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