Welcome to the June edition of the GBTA Europe Advocacy Newsletter designed to keep you up to date with what’s happening in relation to business travel in Brussels, and how GBTA is advocating on your behalf.

Click here for the EU jargon buster.

Summary
GBTA Action in the EU

Feature of the Month

Navigating the Air Travel Turbulence: GBTA's Plea for the Summer of 2023

With summer around the corner, the business travel sector braces itself for potential turbulence. Memories of last year's air travel chaos — marked by delays, cancellations, and misplaced luggage — raise concerns for the upcoming travel season. At GBTA, we implore the industry's key players to take proactive measures to ensure smoother operations this year.

Cancellations are the top concern, as exemplified by the recent disruptions caused by the British Airways technical glitches. The airline industry must ensure adequate preparation to prevent such occurrences from repeating. The International Air Transport Association (IATA) has already echoed this sentiment, urging all involved — airlines, airports, ground handlers, and air navigation service providers — to deliver on their capacity promises.

More strikes across European airports are worrying, particularly those involving airport staff and air traffic controllers. Labour unrest, such as those witnessed in France, has already resulted in significant flight cancellations. We urge for swift and just resolution of labour disputes to prevent extensive disruptions to the air travel network.

Traveller compensation for unavoidable delays continues to cause confusion and potentially could lead to inflated ticket prices if demands for compensation increase— a situation that needs to be mitigated to ensure affordable business travel.

In line with the views expressed by European Transport Commissioner Adina Vălean, we believe concerted efforts are needed from all industry stakeholders to prevent a rerun of last year's chaos. Effective and strategic planning, along with the execution of plans, is the way forward.

As we brace for the summer of 2023, it is crucial that we do not underestimate the challenges ahead. All stakeholders should act decisively to ensure the stability of the sector, especially given the crucial role of business travel in the global economy. At GBTA, we look forward to seeing these steps in action for the benefit of all our members and the broader business travel community.

For more information on the GBTA actions in the EU, please contact clogan@gbta.org.

Other Key Points

1. Transport & sustainability - Developments on the legislations relevant to achieving the EU's climate targets

CSRD - First set of reporting standards is out for feedback
Under the umbrella of the Corporate Sustainability Reporting Directive (CSRD), the European Commission has presented a nuanced framework for comprehensive sustainability reporting standards. This latest draft enriches the initial blueprint prepared by the European Financial Reporting Advisory Group (EFRAG), reflecting the evolution in EU's sustainability discourse.

Key updates include a flexible, company-led materiality assessment for all disclosure requirements, allowing firms to determine what's most critical for their sustainability reports. A phased implementation of specific reporting requirements will help reduce the initial burden, particularly benefiting smaller businesses. Optional disclosures, such as biodiversity transition plans, add further operational flexibility, supporting companies in aligning their unique circumstances with regulatory demands. To ensure coherence with the broader legislative landscape, the Commission anticipates technical modifications to align with existing EU rules and regulations.

Looking ahead, by June 2024, sector-specific standards and proportionate standards for listed SMEs and non-EU companies will be developed under CSRD. Feedback to these proposals has been mixed, with some stakeholders expressing concern about a perceived reduction in reporting obligations, while others see this as a positive step in integrating relevant factors through a dual-materiality lens.

In terms of timeline, a public consultation is open until July 7, 2023, for stakeholders to raise concerns on these standards. The Commission is planning to adopt the act swiftly after the comment period. The adopted act will then be reviewed by the European Parliament and Council for at least two months.

EU Taxonomy
The EU now requires airlines to fuel their flights with at least 15% sustainable aviation fuel by 2030 to unlock green financing, under the EU Taxonomy. This intensified climate push, aimed at the transport and manufacturing sectors, could have business flyers buckling up for a potential rise in ticket costs. View more about EU Taxonomy here.

2. Other updates

GBTA and Allies Champion Integrated Booking in New MDMS Regulation
A consortium of travel associations, including GBTA, is urging the EU to maintain its ambitious scope for the Multimodal Digital Mobility Services (MDMS) regulation. MDMS, designed to simplify the planning, comparison, and digital purchase of tickets for multi-modal transport in the EU, is on the brink of having its final proposals released.

However, our group expressed concern over potential dilution of MDMS's core aim of integrated booking, arguing that merely offering access to ticketing data without integrated booking and ticketing options would hinder its objectives, promote anti-competitive practices, and obstruct the shift toward more sustainable transport. The coalition advocates for a third-party channel booking and ticketing system, fostering fair, reasonable, and non-discriminatory conditions. View more details on our joint position here.

Rethinking airline compensation rules
IATA has put forth a plan suggesting that the entire air transport ecosystem, not just airlines, shoulder the responsibility of compensating passengers for flight delays or cancellations. Citing causes beyond airlines' control such as air traffic control failures, strikes, or infrastructure issues, IATA is pushing for a shared compensation model. It's a move that could rewrite the rules of who pays when flights don't take off on time. More about this here.

Kerosene Tax: A Roadblock to Green Aviation?
Airlines for Europe (A4E) has contested recent research from Transport & Environment, arguing that slapping a kerosene tax on EU flights won't help the aviation industry access crucial decarbonizing technologies or boost green fuel production. The study suggests that with more kerosene taxes, hydrogen planes, envisioned by Airbus by 2035, could be cheaper to run than their fossil-fuel counterparts. Read more here.

New flight emissions tracker on the market
EASA (The European Union Aviation Safety Agency) and Google, in collaboration with Lufthansa, have launched the Flight-Emissions Tracker, aiming to establish a "standardized framework for estimating emissions" and provide "reliable, trustworthy data" on the carbon footprints of flights. More on this new tool here!