Airlines Fretting Over New Fuel Laws

While a variety of bills are making their way through Congress, a Senate bill sponsored by Sens. Joe Lieberman (I-Conn.) and John Warner (R-Va.) is furthest along. It calls for capping carbon dioxide emissions from power plants, transportation and manufacturing sources in order to reduce greenhouse gases 70% by 2050, through a cap-and-trade plan.

With the bill expected to come up for Senate debate in June, the ATA is preparing for a hearing on airline emissions and the environment Tuesday, before the House Aviation Subcommittee.

The legislation is aimed primarily at the energy industry, not surprisingly since power plants produce about 38% of the country's carbon emissions, while automobiles account for about 25% and aviation another 2%.

Were it to take effect as contemplated, in 2012, the bill would set greenhouse gas emission caps based on energy use in 2005, and would sell emissions permits allowing continued energy use at those levels. Proceeds from the sales would fund various causes, none of which pertain to commercial aviation. Additionally, energy companies could buy and sell permits generated by users who reduce consumption.

"With all the early work we've done to reduce carbon dioxide emissions, we would like to get credit for that," says McGraw. "We'd like to see the baseline set fairly so that folks who invested early don't get penalized."

Among Northwest's improvements, the company has replaced 22 aging DC10s with A330s, which are 35% more fuel efficient. In its narrowbody fleet, it replaced Boeing 727s with 73 Airbus A320s and 57 A319s, which are 30% more fuel efficient. It has also ordered 72 new 76-seat jets and has 18 Boeing 787s on order, with options for 50 more.

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