China May Fines European Airlines in Carbon Dispute, FAZ Reports

China may impose penalties on European airlines if the European Union carries out its plan to impose carbon trading on carriers, the Frankfurter Allgemeine Zeitung reported, citing comments by a Chinese official to Deutsche Lufthansa AG (LHA)’s chief executive officer that were confirmed by an unidentified spokesman for the German airline.

Li Jiaxiang, who heads China’s aviation regulator and is also the nation’s deputy transport minister, told Lufthansa CEO Christoph Franz about the plan in Beijing, the newspaper said. China fears that its state-owned airlines may struggle to compete on European routes if the EU’s carbon-trading plan pushes up costs, the FAZ reported.

To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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