American Airlines chief opposes EU air monitoring scheme

American Airlines president Tom Horton has questioned the feasibility of the EU's plans to boost air quality by forcing companies to pay to release carbon emissions.

European leaders are implementing an initiative whereby airlines that exceed their CO2 allocation when flying among the 27 EU member states will be charged to release extra pollutants into the atmosphere.

However, Mr Horton has told the Financial Times that the system is "unwise", as the airline industry is already facing tough times.

Profits among the world's major operators are being squeezed by high oil prices and the International Air Transport Association has predicted revenue will reach just $4 billion (£2.4 billion) this year, which is a significant fall from the industry's $18 billion profits in 2010.

The firm has been joined by other US-based carriers in challenging the EU ruling in court.

European Commission spokesperson Isaac Valero recently told AFP that the body was confident the courts would side with the EU on the matter.

"This is not a tax, a levy or a charge. This is a pollution ceiling," he was reported as saying.

Posted by Claire Manning