The European airline industry is in the spotlight on climate change
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Market Insight 21 December 2023 21 December 2023
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UK & Europe
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Predictions 2024 - Climate Change
The sector is in the front line when it comes to regulatory and public pressure and increased litigation at a corporate and Board level.
As we head into 2024, European airlines are very much in the front line of both regulatory and public opinion when it comes to addressing the challenges of climate change. This comes as part of wider moves in Europe to enact more precise compliance with net zero targets. While the aviation industry has made plenty of progress on and remains fully committed towards those goals it is in the spotlight.
We expect to see more countries following the recent examples of France and Spain next year by looking at restricting short haul flights when there is an alternative to travel by train as well as other airport hubs to look at the example of Schiphol where the Dutch government is trying to reduce the airport’s capacity. Both developments have significant implications for the industry.
Again, the airline industry will be very visible when it comes to anticipated climate change litigation in 2024. NGOs are paying particular attention to any suggestion of greenwashing when it comes to public declarations from the major airlines along the lines of the KLM action earlier this year. As well as any perceived damage to the environment by the sector. There is also a growing risk of the threat of more direct action to airplanes in terms of physical impairment.
Finally, we believe we will see more potential litigation not just focused on the airlines as corporate entities but also on the Directors of those companies for any perception of failing to lead their organisations in a responsible and appropriate way.
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