Playing hardball the Chinese way

The Chinese don’t like the gouging by the EU in taxing airline emissions. They warned Europe that they wouldn’t pay them and the Europeans didn’t listen. So the Chinese have given them a real world wake up call:

China is blocking orders for at least US$12 billion ($14.5 billion) worth of Airbus jets to protest against the European Union’s emissions trading fees, in a new challenge to the programme aimed at fighting global warming, the planemaker said yesterday.

With some analysts warning of a brewing trade war, Airbus spokesman Stefan Schaffrath said his company was seeing “retaliation threats” from 26 countries, “in particular from China”.

He said 35 orders by Chinese airlines for A330 planes are on hold because China’s Government was refusing to approve them. Orders for a further 10 A380 superjumbos were also under threat, and the combined list prices of the aircraft was US$12 billion. “The economic impact is real,” he said.

Boeing will be licking their lips in anticipation…I bet they have already sent in their deal maker to further undermine the Frogs.

Anytime soon the EU will realise that taxing air isn’t a viable proposition for long term economic viability.


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  • thor42

    Bloody good job! 
    As the saying goes – “If it ain’t Boeing, I’m not going.”  
    Too many Airbus crashes in the last few years for my liking.

    I met an aircraft engineer when I was in Canada in 2002, and he said that the Boeing 737s (at least) were “built like battleships”.

  • Mr_Blobby

    Good on them. Especially when you just know if the Solution to a problem is to tax it, then it’s a con.
    Greedy incompetent lying Governments trying to balance the books, now that it is becoming obvious that they have been fixing the books for decades.
    Carry on like that and the Chinese may not give them the trillion dollar loan they desperately need.

  • Apolonia

    That’s a different approach to JK’s “we’ve made the British govt aware that we disagree with these taxes” 

  • politically unstable

    The Chinese have a simple approach to negotiation – and it’s pretty effective

    • Sarrs

      Is that approach the fact that they don’t negotiate? 

  • MarcWills

    Would love it if AirNZ also took this stance. They are in a deal to replace all their Boeing 737’s with new Airbus 320’s in the next couple of years (I think). This new unilaterally imposed “emissions” tax effects AirNZ more than other airlines which fly into UK as our airline can’t use alternative non-european hubs to the same extent, thereby are unable to avoid the tax like other larger carriers.

    Please, AirNZ, talk to Boeing now if it’s not too late.

    • Gazzaw

      I hear you Marc and I would not lose any sleep at all if Air NZ went 100% Boeing but love em or hate em the Airbus 320 is the better option operationally. Air NZ and the government are adopting the right attitude to the ’emissions’ tax (read revenue earner) – if the Chinese can’t reverse the situation on their own then no one can. It’s all a moot point anyway because despite Rob Fyfe’s statements London is still a ‘chop’ option. The viability of that route is dependent on Europeans flying to NZ not Kiwis flying there. Not a lot of discretional money in Europe right now for longhaul holiday travel. Far better for Air NZ to put their resources into China & India.

  • Anonymous Coward

    The new generation of fuel efficient jet engines that are coming on stream in the next few years have a larger barrell size than current engines.

    They fit beneath the Airbus A20 just fine but they do not fit beneath 737’s without messy compromises.

    To go Boeing just to anoy the Europeans wiil cost an airline heaps more for fuel.

  • Greg M

    Old Chinese saying: “Boeing is the sound it makes when bits fall off “

  • Vij

    Send Doshi, the fake Indian, to sort out the Chinese

    • Patriot

      No such thing as Manmade Global warming – Europe has been frozen every winter lately
      So if the Temp cools down to global cooling — will Europe refund the tax charged as a warming tax , if it cools instead of warms .

      Greece and the super lazy Greeks are burning — Europe uses a crap theory like warming  ( when its freezing )  to impose a rubbish tax on the rest of the world flying to Europe  .

      I would cancel the airbus orders too — if Europe tried to tax us using their airspace to bring them spending tourists — i would also tell Europe that our tourist marketing will be Canada, Japan, USA, Aust, NZ , Africa safaris , — anywhere but Europe .

      That’ll rattle their tax vision .