Hong Kong Airlines is considering cancelling its order for 10 Airbus A380 aircraft, reflecting growing tensions between China and the European Union over the EU's controversial emissions trading scheme.
The airline said it was under pressure to call off the purchase of the largest jet produced by Airbus after the Civil Aviation Administration of China told mainland carriers not to comply with the emissions trading scheme, saying it breached international law.
'We cannot do something which is against our country's interest,' the airline's president, Yang Jianhong, said.
An Airbus spokesman said HK Airlines' purchase had been included in the aircraft maker's end-of-year order book. It did not say if the airline might face a compensation claim if the order was cancelled.
The emissions trading scheme is the EU's boldest initiative on climate protection in aviation to date, and is hailed by proponents of more stringent action to curb global warming.
But many airlines and governments oppose it because of cost and sovereignty concerns. The scheme covers all flights to and from Europe, even if the flight path is mostly over international waters or countries outside the region.
As a result, 23 nations including China at their meeting in Moscow last week jointly said they were ready to enter a trade war that could add to the cost of airfares to Europe. They also agreed to co-ordinate any retaliatory action against European-based airlines that fly internationally, such as Air France and British Airways.