Sunday, June 26, 2011
In an effort to strong-arm the European Union into granting Chinese air carriers an exemption from the Union's Emissions Trading Scheme, the Chinese Government has blocked a $3.8 billion Hong Kong Airlines order for 10 Airbus aircraft. See Pilita Clark, China Blocks Billion-Dollar Airbus Order, Fin. Times, June 24, 2011 (available here). While the move is not enough to seriously impact Airbus's financial position, other States may follow suit unless the EU makes compromises on the applicability of the ETS to third-country carriers.