Monday 14 November 2011

FAA sticks the boot in

The US Federal Aviation Administration (FAA) has made an official submission to the UK’s Department of Transport’s consultation on Sustainable Aviation. It is unusual for a foreign government agency to get so closely involved in UK policy making, but in certain circumstances this can be useful in ensuring that policy takes into account a range of stakeholders including key allies and trading partners. In this case it looks like the FAA is lobbying to defend the status quo and resist efforts to drag aviation into the 21st century.

The UK is taking a lead in developing sustainable policy for aviation; which – if it is to be effective – must tackle deep-rooted resistance from a highly conservative and globalised industry. The current policy framework locks the industry into an outdated framework in which aviation fuel for international flights is free of tax. This anachronism dates back to the end of the Second World War when aviation was seen as a key component of building the peace and emissions from the small fleets of aircraft were not seen as a threat to the global climate. Agreed in Chicago in 1944, the Convention on International Civil Aviation still rules aviation today. Article 24 prevents countries from levying tax on fuel carried on board aircraft. No country will lead in taxing aviation fuel as airlines would reconfigure their operations not to need to pick up fuel in that country and shift long-haul hubs to other jurisdictions. There is a stalemate in which all commercial decisions are taken on the assumption that aviation fuel is tax-free and will remain so.


The green aircraft designs needed in the 21st century are on the drawing board but have little chance of getting into the air as the engineers have to compete with conventional 20th century gas guzzlers burning cheap fuel. Even the newest plane on the block, the Boeing 787 Dreamliner is just the final model of 20th century aviation, more efficient, yes, but nowhere need the efficiency needed in the future. The Dreamliner has a future beyond the introduction of a tax on aviation fuel, for passengers who can afford high ticket prices such as time-poor business passengers and the rich, but those of more modest means will fly in highly efficient, but slower, aircraft. To develop these new aircraft requires a proper business case by levelling the playing field through removing the tax exemption for aviation fuel. The oddity is that there is a much better aviation industry waiting to launch if only policy makers could understand fully the opportunity.

The FAA does not agree, according to the UK newspaper, the Sunday Times who have seen the submission. The Office of Environment and Energy at the FAA expresses their ‘serious concerns about the UK’s approach to aviation’ and climate change worried that the policy will constrain aviation rather than support sustainable growth. There is also dislike that the UK is taking a more realistic viewpoint to the extent that biofuel can replace conventional aviation fuel. My detailed examination of aviation shows that the UK government is not being bold enough in the policy it proposes. To me the FAA viewpoint looks like stuck in the past trying to defend the indefensible.

Advanced orders now being taken for Peter McManners’ next book Fly and Be Damned: What now for aviation and climate change?

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