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Due to High Fees for Greenhouse Gas Emissions, Airlines Face Significant Costs

Air carriers are facing significant costs due to high fees for greenhouse gas emissions, abuse of passenger rights, and security procedures due to problematic passengers, it was stated on Wednesday at the Aviation Day – Croatia panel discussion, organized by the International Air Transport Association (IATA) and Croatia Airlines.

The discussion included Croatian representatives in the European Parliament, representatives from the Ministry of the Sea, Transport and Infrastructure, the Ministry of Environment and Nature Protection, the Ministry of the Interior, the Civil Aviation Agency, the Croatian Chamber of Economy, Zagreb Airport, IATA, and Croatia Airlines.

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Lana Marić-Štimac, the coordinator of relations and affairs with IATA at Croatia Airlines, told Hina that the regulation limiting carbon dioxide emissions is very rigidly imposed on air carriers, although they are not responsible for carbon dioxide emissions to the extent that is usually considered.

Thus, aviation has been a participant in greenhouse gas emissions trading systems since 2010, while, for example, shipping minimally enters such systems, despite having a far greater impact on global emissions.

The meeting highlighted that data from the global emissions trading system clearly shows that in the last five years, the price of emission units has steadily increased, causing Croatia Airlines’ annual costs to rise from several hundred thousand euros to more than several million euros, significantly affecting the company’s overall operations.

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Regarding passenger rights, Marić-Štimac emphasizes that they are not disputed, but “become irrational.” For example, compensations are being sought for delays, flight cancellations, and denied boarding despite reservations, even in cases of force majeure that companies cannot influence.

Extremely high compensation claims are emerging, and representatives of companies intercepting passengers offer them mediation services with commissions reaching up to 30 percent of the awarded compensation, says Marić-Štimac.

A particular problem is security issues with passengers who create disturbances on aircraft, to which, adds Marić-Štimac, there is a lack of legal regulation that would allow for their treatment. Besides jeopardizing flight safety, such passengers cause significant costs to carriers arising from forced landings and delays in reaching destinations, which are borne exclusively by the airline.

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In addition, the carrier is subject to very high monetary fines if it transports a passenger without the appropriate entry documents for Croatia, but in many cases, these are transit passengers, whose documents the national carrier is unable to control.

All of this, says Marić-Štimac, are exhausting and hard-to-bear costs that can lead to increased prices or limitations on existing passenger benefits.