Emirates Airline predicts huge carbon costs

New EU environmental legislation aimed at restricting companies from releasing carbon emissions could cost one airline up to $1 billion (£611 million).

Bosses at Emirates Airline have predicted the ruling - which comes into effect in 2012 - will force the firm to fork out at least $500 million.

CO2 emissions throughout European airspace will be limited to 97 per cent of those released between 2004 and 2006, with fines incurred for any extra pollution.

According to Emirates' senior vice-president of public, industry, international and environmental affairs Andrew Parker, the law will affect the enterprise's profits for between eight and ten years.

"Europe is very large in terms of our global network. This will have a very significant financial impact on Emirates," he remarked.

A number of US-based airlines have also declared their disapproval of the scheme, with American Airlines president Tom Horton recently telling the Financial Times that the proposals are "unwise".

Posted by Claire Manning