BAE Systems and EADS: Why the deal collapsed

“If I wasn’t a born optimist, I would not have started this project.” So declared Tom Enders earlier this week, in a letter to employees marking his 100th day as EADS chief executive.

Only now has it become clear just how optimistic Enders was being.

Enders the optimist tried to achieve in one month what his predecessors had failed to do in the previous 12 years – resolve the political tensions at the heart of EADS once and for all through a merger with BAE Systems.

He even convinced BAE Systems that he could achieve this. However, even for an optimist, it proved impossible

Enders saw a merger with BAE as a means of facilitating the end of France and Germany’s grasp on EADS.

The US Air Force Thunderbirds F-16s at the Constanta Air Show 2011 in Romania

China bans its airlines from paying EU carbon tax

Beijing hardens line against European Union emissions levy that is also opposed by the US and India.

China has banned its airlines from paying the new European Union carbon charge, state news agency Xinhua has reported – stepping up the international battle over the scheme.

The levy applies to all airlines flying to and from EU countries. Companies that do not comply face fines and ultimately could be banned from using EU airports.

The Civil Aviation Administration of China (CAAC) said on Monday that airlines were not allowed to pay the EU charge, increase freight costs or add other fees, according to Xinhua. It cited authorisation from the state council, China's cabinet.

Hinting at possible retaliation, Xinhua added: "China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue."

The EU's ambassador in Beijing, Markus Ederer, told a press briefing it hoped to resolve the issue through negotiation. Beijing's announcement came one week before a China-EU summit.

Although the scheme came into force from 1 January, fees do not have to be paid until March 2013. Supporters believe including aviation in the emissions trading scheme is crucial because the industry's carbon output is soaring.

Airlines urge U.N. deal to avert carbon trade war

A passenger plane flies over a barbed wire fence as it approaches an airport
in this February 23, 2010 file photo. Credit: Reuters/Tim Wimborne

Global airlines called on Sunday for a U.N.-brokered deal to prevent a row over aviation emissions between China and the European Union spilling into a damaging trade war.

The call by the head of the International Air Transport Association (IATA) comes amid signs that the EU may be willing to soften a unilateral stance that also risks souring efforts to resolve Europe's sovereign debt crisis with Chinese support.

In an interview, IATA Director General Tony Tyler said airlines had become wedged between conflicting domestic laws after China ordered its airlines not to join the EU's compulsory market-based system for regulating airline emissions.