Boeing and Air China today signed an agreement for the purchase of five 747-8 Intercontinentals. Air China is the first Chinese carrier to contract the passenger version of the new 747-8. The agreement requires Chinese government approval, at which time it will be posted to the Boeing Orders & Deliveries website. “Air China has been operating 747s since the 1980s,” said He Li, vice president of Air China. “The new, high capacity Boeing 747-8 Intercontinental will deliver exceptional economics and a great flying experience to our customers.”
Using 787-technology GEnx-2B engines, the aircraft will be quieter, produce lower emissions and achieve better fuel economy than any competing aircraft. It also increases cargo volume by 26%.
So the 747-8 is gaining orders, we will have to wait until the turn of the year to see if this aircraft type is doing well. Boeing remains disappointed at this stage.
EU GIVES ETS LIMIT GUIDANCE
The European Union told airlines yesterday to trim their carbon emissions by 3% on flights to the continent next year to fall within new pollution limits.
The limit is designed to encourage airlines to reduce greenhouse gases that contribute to global warming by switching to cleaner fuels or economizing on fuel consumption with lighter aircraft or more efficient flight patterns.
Yesterday the European Commission, the EU’s executive, set the 2012 cap at 212.9 million tons of CO2, about 3% less than the annual average the airlines emitted in 2004-2006. The cap will be reduced the following year by another 2% of that three-year average, where it will remain until 2020. “Emissions from aviation are growing faster than from any other sector,” Connie Hedegaard, the European commissioner for climate action, said in a statement. “Firm action is needed.” The EU says the impact of the measure on airline tickets “will probably be minor.” It calculated that a round trip ticket from Brussels to New York will cost an extra $16.75 (at today’s conversion) if the full price of carbon is passed on to the customer.
In fact, the airlines will receive more than 80% of allocations for free. But officials in the European Commission say it’s likely the companies may take advantage of the scheme to raise prices by the full value of the allocation, reaping a “windfall” profit.
In its current form ETS looks like it will be a bonus for European airlines and give them an edge over many other regions as it is likely that this will become a global template for taxation within the decade. If oil falls back toward the end of the year then it will create a good margin for the airlines as they increase ticket prices on the back of the ETS.