easyJet chief says green campaigners have a point

-
Aa
+
a
a
a
25 May 2005Terry Macalister

The no-frills carrier easyJet yesterday accepted there was legitimate public concern about the impact of flying on climate change and said it would welcome a dialogue with green campaigners.

The chief executive, Ray Webster, said he would not object to a fuel tax linked to carbon emissions being imposed as long as it was fair and did not "price the industry out of existence".

His comments come amid mounting frustration among environmental activists that jet fuel is not taxed in the way that petrol is for road vehicles. There has been speculation that airlines could be targeted for protests by green groups, which last week disrupted production at vehicle manufacturer Land Rover.

"In principle we agree with the concern [about climate change] and I personally - as a New Zealander - certainly do. But this issue is best tackled by working together rather than confrontation," said Mr Webster.

Travellers already pay air passenger duty of £5 a ticket but was not related to the fare or the fuel used, said easyJet.

It would be fairer to align any taxes with a specific objective, such as cutting greenhouse gases, said Mr Webster.

The airline boss said easyJet should be one of the last to be criticised when it came to harming the environment.

"By the end of 2006 we will have one of the youngest fleets in the world with an average of two years old. Very modern aircraft are more efficient and cause less pollution than the older ones operated by many traditional carriers," he said.

But Mr Webster pointed out that airlines were not best-placed to take any extra tax because few were making profits unlike airport operators, such as BAA, which were acting as virtual monopolies.

He was speaking after easyJet reported increased pre-tax losses of £22m, up from a deficit of £19m in the first half of 2004, despite revenues growing 26% to £553m.

Shares in the firm slumped 5% to 236p as the company expressed it was comfortable with analysts' full-year profit forecasts of between £50m and £55m, which will be lower than 2004.

The company launched 40 routes and raised passenger numbers by 25% in the six months to March but was undermined by rising competition and high fuel prices.

http://www.guardian.co.uk/print/0,3858,5201061-103676,00.html