There have been a number of interesting stories in the media over the couple of weeks in relation to aviation and the environment. The Guardian reported on a CAA survey which revealed that only 7% of air passengers are willing to pay more for their flights by offsetting their carbon emissions. Moreover, the survey showed that a very small number of travellers - 9% - have chosen to fly less often in the last year because of environmental considerations.

British Airways is investing in a factory that will convert tonnes of household rubbish into enough jet fuel for all its flights from London City airport twice over. The Sunday Times reported this weekend that the partnership with Solena will lead to significant cuts in greenhouse gas emissions from aircraft. The aviation industry has set out how biofuels will play a role in reducing emissions to 2000 levels in 2050.

As reported by David Millward in the Daily Telegraph, the Emergency Budget produced by the Treasury decided to press ahead with November’s punitive hikes in flight tax of over 50 per cent. The rises mean that from November a family of four travelling economy will pay up to £340 in tax to fly from the UK. A family flying premium economy will pay up to an eye watering £680.

EADS Chief Executive Louis Gallois warned this week that there is shortage of skilled workers for the aerospace industry in the UK. As reported in the media, Gallois voiced his concern that the aviation industry is having to look to India, China, USA and Singapore because of the lack of British skilled engineers. As he said, "if we want a strong industry, we have to have engineers." The Secretary of State for Business, Innovation and Skills, Vince Cable, gave a major speech to the Cass Business School this week, and his comments make for interesting reading in the light of the concerns expressed by EADS. Cable made clear that his central task was "to make sure Britain is a place where enterprise and innovation are made easier...where people have the skills we need." As he explained how government would do this, Cable said that Britain must make it easy to invest from abroad. This echoes previous comments from Chancellor George Osborne, who stated that the UK is "open for business."

The new Government has been warned that it would be "crazy" to further increase the taxes on flying at a time when the industry is reeling from a series of body-blows - including the volcanic ash crisis. Brian Wilson, the former Energy Minister who chairs the pressure group Flying Matters, said: "There is talk of the Tory-LibDem coalition doubling taxation on aviation because it is one of the easier things for them to agree on. They must be told that this is not a victimless offence but an absolutely crazy assault on one of Britain's most important industrial sectors, both for manufacturing and services."