GREEN AGENDA WILL MEAN HIGHER AIR FARES FOR DECADES, SAYS EX-BA BOSS WILLIE WALSH

The green agenda means travellers will suffer higher air fares for decades, the former boss of British Airways has warned.

Willie Walsh, now director general of air industry lobby group IATA, said that an enforced switch to less pollutive aviation fuels would be more costly. He also wanted that “consumers ultimately pay for this”.

Travellers have already been hit by double-digit percentage rises in air fares both this and last year, sparking fears that the era of low-cost flying is over

Although Mr Walsh said that analysis by IATA of more than 800 million fare types showed that, in real terms, fares were broadly flat, passengers should brace for increases even if inflation falls, due to the added cost of airlines switching to sustainable aviation fuel (SAF).

Many countries have announced minimum requirements for SAF use in response to criticism from environmental campaigners. 

In addition, airlines have introduced their own targets after coming under pressure from investors to reduce carbon footprints.

Mr Walsh said the transition to net zero would come with a cost.

He said: “People have asked me, what’s this going to mean for fares? It will mean higher fares. Because sustainable aviation fuel is more expensive than traditional jet kerosene.

“As we transition to net zero, it is going to cost money. And whatever way you look at it, consumers ultimately pay for this.

“We’re going to require more and more SAF, and that means more and more expense.

“I see certainly in the next 10 to 15 years that we’re looking at a significant increase in fuel costs. Unless there’s some compensating reduction in other costs, and I don’t see that then. I think people have to expect that there will be an increase in average fares as we go forward.”

“This is going to impact everybody. But it means fares are going to be higher.”

The warning came as the British boss of Emirates said that there was already significant pressure on fares, as demand for flights continues to significantly exceed supply.

Sir Tim Clark said: “In winter last year, for every seat we sold another five people wanted it… We could have put it out to auction if we’d wanted to.

“People who used to fly at the old fare levels and piling in at the new fare levels.

“It just doesn’t seem to make sense in the way we used to understand it. All I know is that we’re moving – so we’ll take it.”

Mr Walsh previously called for the EU to introduce new laws to prevent striking French air traffic controllers from causing havoc for British holidaymakers this summer.

French law dictates that domestic flights must be able to continue during industrial action. However, international flights are currently banned from flying over the country while air traffic controllers are out on strike.

Yesterday Ryanair joined Mr Walsh’s calls as it cancelled 400 flights, blaming strikes at French air traffic control on Tuesday. 

The low-cost airline said the vast majority of services affected were not ones landing or taking off from France, but so-called overflights travelling through its airspace.

Meanwhile, Mr Walsh, who ran British Airways and its parent IAG between 2005 and 2020, said that he would return to using Russian airspace if he was still in charge of the airline.

Economic sanctions against Russia currently prevent many Western airlines from using the country’s airspace, forcing them into lengthy detours.

But Mr Walsh said: “I would fly through Russian airspace if I could. So the idea that people won’t fly through Russian airspace doesn’t make sense. What we want to see is Russian airspace open to everybody.

“There is no safety or security concern that I can see flying through Russian airspace – lots of airlines are doing it.

He continued: “We want to see Russian airspace open to everybody. And as soon as that happens the better. And clearly we want to see the war end in Ukraine. And we want to get back to airlines being able to operate in a more normal environment.

“If I was running BA, would I have a concern? No, I wouldn’t.”

Mr Walsh’s remarks were at odds with those made by another industry heavyweight at IATA’s annual general meeting in Istanbul.

Scott Kirby, chief executive of United Airlines, the world’s biggest airline, said: “I think it creates a safety issue, a security issue. If one of those because they have US citizens, if a US citizen lands in Russia, a prominent US citizen. I mean, would you want to land in Russia?  

“If there’s a mechanical issue or medical issue. You’re going to land in Russia. And what’s going to happen if an airline lands in Russia with some prominent US citizens on board?

“That is a potential crisis in the making. I think we should solve it before the crisis happens. It may require the crisis before it gets solved. But I think we should probably solve it before the crisis.”

But Mr Walsh said: “You cannot make the safety argument. Aircraft are safely flying through Russian airspace today. And that’s that so it’s not a safety or security concern for airlines to fly through Russian airspace.

“The reason airlines are flying through the Russian airspace is because it’s close to certain airlines because of the geopolitical situation. And there’s nothing we can do to change that other than to continue to call for the end of the war in Ukraine.”

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2023-06-06T15:07:55Z dg43tfdfdgfd