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HONG KONG (Reuters) - Hong Kong Airlines Ltd has threatened to cancel an aircraft order with Airbus due to growing tensions between China and the European Union over the bloc's emissions trading scheme, a local newspaper reported on Thursday.
The Hong Kong-based regional carrier, which is backed by China's fourth-largest carrier Hainan Airlines Co Ltd <600221.SS>, said it was under pressure to cancel its order for 10 Airbus A380 aircraft with a list value of $3.8 billion, the South China Morning Post said.
"We cannot do something which is against our country's interests," the newspaper quoted airline President Yang Jianhong as saying.
Delegates from 26 countries opposed to a new EU carbon tax on airlines are meeting in Moscow to consider possible retaliation, amid fears of a trade war.
China, India, Russia and the US are among the countries opposed to the EU fee, which took effect on 1 January.
Critics say the EU has no right to impose taxes on flights to or from destinations outside Europe.
Actually EU should be charged/taxed for the pollution they have already caused. That amount should be used towards nature conservation.Good.
The EU is trying to tax the rest of the world, to pay for their own economic incompetence. But we'll get the money back one way or another.
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BBC News - Countries rally against EU carbon tax on airlines