1. Presentation by Mr. Arturo BENITO Director Fleet Planning & Environment IBERIA Chairman of the Infrastructure & Environment Committee of the AEA Brussels 24 October, 2005 ECCP STAKEHOLDERS’ CONFERENCE

2. AEA EBAA EEA ERA IACA A SINGLE VOICE FOR A JOINT MESSAGE

3. AVIATION CO 2 IN EUROPE

4. EMISSIONS CONTAINMENT POLICY – FOUR PILLARS  TECHNOLOGICAL PROGRESS  INFRASTRUCTURE IMPROVEMENTS  OPERATIONAL MEASURES  ECONOMIC INSTRUMENTS

5. ACARE ACTION Environmental objectives: 80% reduction in NOx 50% reduction in fuel burn and CO 2 per passenger km 50% reduction in perceived noise per aircraft movement Proposals include airframe and engine technologies, alternative fuels  INDUSTRY EXPENDITURE ON RT&D OVER 14% OF TURNOVER ANNUALLY

6. AN EXAMPLE OF TECHNOLOGICAL INNOVATION 4.3 l/100pkm average specific fuel consumption of the entire passenger fleet in 2003 30 % Reduktion seit 1991 Source: Lufthansa

7.  IPCC REPORT - EMISSIONS REDUCTION OF 6- 12%, IF ATM IMPROVEMENTS IMPLEMENTED WITHIN 15 YEARS  EU TO INTENSIFY EFFORTS TO DEVELOP THE SINGLE SKY AND SESAME PROGRAMMES  POLITICAL & BUDGETARY SUPPORT NEEDED FROM THE TEN-T 2. INFRASTRUCTURE IMPROVEMENTS

8.  IPCC REPORT - EMISSIONS REDUCTION OF 2-6% THROUGH OPERATIONAL MEASURES  EU TO PROMOTE ICAO CIRCULAR 303 WHICH IDENTIFIED OPERATIONAL MEASURES TO LIMIT/REDUCE AIRCRAFT EMISSIONS. 3 3. OPERATIONAL MEASURES

9.  TAX – NOT LEGALLY APPLICABLE TO INTERNATIONAL FLIGHTS; NEGLIGIBLE ENVIRONMENT BENEFITS   CHARGES – COST-RELATED, EITHER REVENUE- NEUTRAL OR REVENUES DIRECTED TO ENVIRONMENTAL R&D   EMISSIONS TRADING SYSTEM – RECOGNISED BY ICAO AS POTENTIALLY ENVIRONMENTALLY EFFECTIVE AND COST-EFFICIENT APPROACH 4. ECONOMIC INSTRUMENTS

10.  COVERAGE - CO 2 ONLY  GEOGRAPHICAL SCOPE – IDEALLY WORLDWIDE, BUT IF IT IS AN EU ETS: INTRA-EU ROUTES 3.TRADING ENTITY - AIRCRAFT OPERATOR 4. ALLOCATION METHOD: ALLOWANCES TO BE GRANTED TO THE AVIATION SECTOR AT EU LEVEL, BASED ON GRANDFATHER RIGHTS 5.EU ETS COULD BE AN INTERIM OPTION INTERPLAY WITH KYOTO - OBJECTIVE: EXTENSION OF THE PROTOCOL BUT RESTRICTED TRADE WITH THE OTHER SECTORS CURRENTLY COVERED BY THE  DISTRIBUTION METHOD – BENCHMARKING, TO TAKE INTO ACCOUNT EARLY EFFORTS MADE BY AIRCRAFT OPERATORS 7.MONITORING METHOD - MEASURED TRIP FUEL BY AIRCRAFT OPERATORS AVIATION INDUSTRY PROPOSAL – EMISSIONS TRADING

11. 11 EQUAL ACCESSIBILITY - AIR

12. SUSTAINABLE MOBILITY AVIATION IS THE ONLY MODE OF TRANSPORT WHICH CONNECTS CARGO AND PASSENGERS FROM THE PERIPHERAL REGIONS OF EUROPE TO THE CENTRE, AND EUROPE TO THE REST OF THE WORLD.