China Southern and other big Chinese carriers refuse to pay the EU's carbon emissions tax.

The European Union’s plan to impose a carbon tax on flights in and out of the region has drawn criticism from around the world, but Chinese airlines have now become the first to flat-out refuse to pay the tax.

Part of the European Union’s emission trading scheme (ETS), the tariff went into effect at the start of the year and is tallied based on the entire route of a flight, not just the portion that uses European air space. Uncooperative airlines could face fines of 100 euros per ton of emissions, and eventually be banned from European airports.

“China will not cooperate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax,” said Cai Haibo, deputy secretary-general of the China Air Transport Association (CATA), according to Reuters.

China is far from alone in its opposition to the new tax. The Air Transport Association, along with three U.S. carriers, filed suit in Europe last year to have the tax blocked, arguing that the International Civil Aviation Organization (ICAO), a UN agency, is the appropriate body to impose such a tax. Legislation has been introduced in Congress that would formalize U.S. opposition. India’s civil aviation ministry has reportedly told airlines not to submit the data that the EU requires under the ETS. And Australia’s Qantas Airlines has threatened a lawsuit.

Although airlines would not actually pay until March of 2013, the ETS began affecting flights January 1, so passengers could begin to see fare increases soon.

Estimates differ on how much the tax will cost airlines, and how much airlines would pass on to passengers. The European Commission puts the cost at two to 12 euros (about $2.50 to $15) per passenger per flight, but aviation analysts have come up with other figures. One told Dubai’s Gulf News that he believed the cost would come to $20 to $30 per trip, just for short hauls within Europe. A spokesperson for Cathay Pacific told Reuters that the ETS would add about $6.44 to a ticket from Hong Kong to Europe. And Tony Tyler, director general of the International Air Transport Association (IATA), estimates the ETS’ cost to airlines in 2012 will reach 1.2 billion euros ($1.53 billion).

Photo: Heurik Manuel Pajer, Wikimedia Commons

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It seems intuitive that having airline pilots who aren’t fatigued would be optimal for both passengers and carrier owners—not to mention the men and women in the cockpits. But it wasn’t regulated until today, when the Federal Aviation Administration (FAA) issued a landmark ruling that addresses jetlag and requires pilots to fly shorter shifts and get longer rest periods.

A February 2009 Colgan Air crash in upstate New York that killed 50 people due to two exhausted pilots—coupled with years of lobbying by safety advocates—were the catalysts for the FAA to make these changes, the most extensive updates to the existing flight, duty and rest regulations that largely date back to the 1960s.

The new rules take research on circadian cycles and jetlag into consideration and apply to certificate holders and their flight-crew members operating under 14 CFR Part 121, which applies to the majority of flights flown by the U.S. public. Cargo carriers are currently exempt.

Highlights of the changes include:

• The maximum Flight Duty Period (FDP) a pilot can be scheduled for is limited to between nine and 14 hours, depending on the time shifts begin and how many time zones will be crossed. This time now includes time spent commuting to work, wait times and administrative duties.
• The maximum number of hours a pilot can be scheduled at the controls is limited to eight or nine, depending on start time.
• The length of continuous time off during a seven-day period has been extended from 24 hours to 30 hours. Additional time off is required for individuals whose internal clock may be off because of traveling back and forth between different time zones.
• Minimum rest periods are now 10 hours between each FDP, a two-hour increase over previous rules. The pilot must have an opportunity for eight hours of uninterrupted sleep.
• With a two-hour nighttime sleep opportunity each night, pilot performance improves sufficiently to allow up to five nights of consecutive nighttime operations.
• Carriers can create an alternative Fatigue Risk Management System (FRMS) of processes to manage and mitigate fatigue and meet an equivalent level of safety. It must be approved by the FAA and regularly monitored.
• Carriers’ Fatigue Risk Management Plans for fatigue-related education and training, mandated by Congress in 2010, must be updated every two years.

Airline companies have two years to adapt to the new rules.

According to the filing, “[t]he underlying philosophy of the rule is that no single element of the rule mitigates the risk of fatigue to an acceptable level; rather, the FAA has adopted a system approach, whereby both the carrier and the pilot accept responsibility for mitigating fatigue.” In other words, pilots also are responsible for making sure they get the adequate rest they need during their off hours.

The FAA estimates the costs of the rules at $297 million, but with benefits valued at $247 to $470 million. Additional details can be found in the 314-page ruling on the FAA website.

Photo: Adpowers (flickr)

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After several months of increasing speculation by investors, the parent company of American Airlines, AMR Corporation, filed for Chapter 11 bankruptcy protection today. It is the last of the major U.S. carriers to do so, and the only one that didn’t turn a profit in 2010.

Rising jet-fuel prices and labor costs, combined with increased competition due to mergers of other carriers—pushing the once largest domestic carrier to the No. 3 slot—are the main reasons behind the filing. According to the Wall Street Journal, AMR stock stopped trading early on Monday and closed at $1.62, down 54 percent over the past three months.

What does this mean for travelers with American Airlines tickets and miles?

In the short-term, not much. According to a statement released by the Fort Worth, Texas-based company, AMR has $4.1 billion in cash to ensure the uninterrupted supply of goods and services, and will be conducting business as usual. The airline expects to:

• Provide safe and reliable service;
• Fly normal schedules;
• Honor tickets and reservations, and make exchanges and refunds as usual;
• Fully maintain AAdvantage frequent-flyer and other customer-service programs, and ensure all AAdvantage miles and elite status earned by members remain secure and intact;
• Provide Admirals Club access and similar amenities to members and eligible customers;
• Remain an integral member of the oneworld alliance, of which American is a founding member; and
• Continue its codeshare partnerships.

That noted, airlines in bankruptcy protection typically do tend to reduce their schedules while they try to regain their financial bearings, which could have long-term affects for certain destinations.

One short-term advantage for travelers is that after a Chapter 11 filing, the airline often offers substantial sales in an attempt to maintain customers who might be leery about flying on a bankrupt carrier.

Also, members of American’s AAdvantage frequent-flyer program should keep their eyes peeled for special deals too, such as even more offers bonus-point earnings or reduced miles for redemption, as the airline will want to make sure it keeps its most loyal customers during the restructuring.

In a separate announcement, the AMR board of directors has appointed Thomas W. Horton chairman, CEO and president of American Airlines, succeeding Gerard Arpey, who has decided to retire.

Photo: American Airlines

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With the launch of Google Flights, the mega search engine has now officially unwrapped its first ITA Software-powered flight search tool.

Google Flights (google.com/flights) looks to be a work in progress and currently offers only results for round-trip economy-class flights for a limited number of U.S. cities.

Even so, the map-based functionality and query volumes it can generate in association with Google search and Google Maps make it a formidable competitor to existing flight search engines.

When someone types in a query on Google.com, like “flights from Chicago to Denver,” a “Flights” link shows up in the left bar which will take the user to the Google.com/flights page.

The tool also has a number of attractive features beyond traditional flight search. For example, you can explore possible destinations based on airline, flight time and price. You can choose to find destinations within three hours and $300 from San Francisco, and all the possible destinations will show up on the map as a solid blue dot. Hover over one of the dots to find the cheapest available flight for that route.

To compare multiple locations, you can enter up to five airport codes in the “from” and “to” fields. Once you have the destination figured out, the calendar visualization tool makes it easy to find the best date to get the lowest price.

As far as booking is concerned, Google Flights is currently offering booking links only for the airline websites in question, leaving everyone else in the lurch.

Kayak, which is among those most threatened by Google’s $700 million acquisition of ITA Software and foray into flight search, put out a statement which says, “We’re confident in our ability to compete, and we believe our flight search technology is superior.”

The Fairsearch coalition created to oppose the Google-ITA merger also had a fairly predictable response with a post titled “In travel search, the other shoe drops.”

The shoe has dropped, but it would be premature to say that Google is going to throw them out of flight search mid-air, without a parachute.

In a blog post on the Inside Search blog, Google engineering director Kourosh Gharachorloo said that they are working to “create additional opportunities” for others in the travel industry who might want to participate.

“This is just an early look: the takeoff, not the final destination!,” said Gharachorloo. “We’re working hard to improve this feature and look forward to sharing more updates.”

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