Europe's low-fare airlines warn that a pending CO2 cap-and-trade requirement by the European Union will wipe out profits and stifle growth. To avoid profiteering by carriers that simply pass higher costs along to customers, the EU plans to force airlines to buy 15% of available pollution permits from other companies. But a study commissioned by the European Low Fares Airline Association found that purchasing just 3% of such permits would cost members $5.5 million a year. "We get tax after tax, conceived in the name of the environment, which rob the industry of the cash to invest in technology," says IATA director general Giovanni Bisignani.

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