From 2012 on every international airline, flights from and to the EU area will have to participate in the mandatory EU CO2 Emissions Trading Scheme (ETS). According to Merrill Lynch the total cost of the ETS will be significant for the aviation sector and amount to about US$4 billion annually. We estimate that airline operators could see an increase in costs of more than 3% – if an operator fails to prepare carefully already in 2009, this could be even higher.
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