China has told Airbus directly that there will be potentially severe consequences if Europe goes ahead in requiring China to participate in the Emissions Trading Scheme next January first.   The scheme requires airlines to buy carbon credits to offset pollution created by flights to and from European countries.

China’s response is somewhat loud and even hysterical but it isn’t poorly targeted.   By threatening Airbus directly, they send a very direct message to France and Germany and even the United Kingdom.  All countries who benefit considerably from sales of Airbus aircraft.  Airbus is to France and Germany’s economy as Boeing is to the United States.  And the United Kingdom’s aerospace industries do a healthy business with Airbus as well.

Already Germany and the UK are working to find an alternative to requiring China to participate in this and this is bad business.  Permitting a threat like this to inspire such a reaction puts you in the position to be not treating all trading partners the same and it puts you in a weak position when it comes to your future business in that country.

Filed under: Airline News by ajax