India May Ban European Airlines Over Carbon Tax

India May Ban European Airlines Over Carbon Tax
The Wall Street Journal, 26 May 2012

Nikhil Gulati

NEW DELHI – India may ban European carriers from flying into the country if the European Union includes airlines in its emissions control system, a senior Indian government official said Friday.

"We will take retaliatory actions to counter steps taken by [the] EU. If Europe bans our carriers we will ban theirs as well," the official told reporters.

India and 26 other nations have protested against the EU's planned rules requiring all airlines to hold permits that allow them to emit carbon dioxide during any flight landing at or taking off from any airport in the region.

The potentially costly procedure will be an additional burden for Indian carriers, already reeling from huge financial losses. India has already barred its carriers from participating in the EU system.