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Executive summary

Frontier has been asked to prepare this report by the European Low Fares Airline Association (ELFAA)

  1. • carries out a systematic assessment of the literature to set out the evidence on the economic aspects of applying the EU ETS to aviation in an objective and robust manner;
  2. • sets out a framework that focuses the debate on the important economic aspects of including aviation in the ETS and (where possible) comments on the impacts of proposed options;
  3. • draws conclusions about the properties that should be reflected in an effective and well designed application of EU ETS to the aviation sector; and
  4. • addresses the impact that EU ETS may have on competition in the airline sector.  


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Executive summary

Environmental impacts of air transport have been the “hot topic” over the past months and some unfortunate myths have been repeated by various stakeholders. The European Low Fares Airline Association (ELFAA) in this position paper aims to clarify these inaccuracies and break the myths in order to promote sensible discussion of the issues.

Successful liberalisation of air transport in Europe and the resulting emergence of the low fares airlines (LFAs) have brought direct benefits to European consumers and regional development in the form of increased employment, cross border investment and cost efficiencies to small and medium-sized undertakings, among others. LFAs contribute to the development of sustainable tourism and environmentally efficient travel throughout Europe. LFAs are actually minimizing environmental impacts given the highly efficient nature of their operations and the fact that they operate modern, fuel efficient fleets, i.e. make the most of current technological achievements by aircraft manufacturers. LFAs are therefore the most environmentally responsible segment of the air transport industry.


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