Leading aviation figures speaking on a panel at the Farnborough Air Show highlighted the progress they are making to reduce emissions, as well as their frustration at government efforts on this front.

Boeing Commercial Airplanes head Scott Carson captured the general mood when he noted that "we can tax this industry into oblivion and damage the global economy--and accomplish nothing" to help the environment.

The industry is in accord regarding environmental issues, said IATA Director General Giovanni Bisignani. "No other industry is as united, responsible or ambitious" in its approach to emission reduction, he said. Bisignani noted that airlines already have a massive incentive to increase fuel efficiency--the industry's projected fuel bill this year, if oil stays at $135 per barrel, is $190 billion. Next year it could go beyond $250 billion, he said.

Bisignani was scathing in his assessment of governments' "rush to implement economic penalties" for aircraft emissions. He highlighted the EU proposals to include airlines in an emissions trading scheme. "Europe has failed to understand it can't make global policy alone."

Similarly, the U.K. government's proposed air passenger duty is a "big embarrassment" for that country.

"Governments think green, but see cash," Bisignani believes. "The only time you see governments acting fast [on environmental issues] is when they are lining their own pockets with taxes."

Marion Blakey, president of the Aerospace Industries Association, said technology advances will be the "workhorse" of aviation emissions reductions. Manufacturers have a "terrific track record" in this regard, and the industry has "no intention of resting on its laurels."

She noted that the U.S. airline industry in particular is "on its knees" at the moment, and big changes are likely. However, when the industry emerges from the current crisis, it will "leave behind in the desert its less fuel efficient aircraft."

Blakey said efforts to address aviation emissions "have got to be global in scope," and policy can't be made on a parochial or piecemeal basis. Real progress will only come through a global commitment and linked efforts, she said.

British Airways CEO Willie Walsh noted it is the airlines, rather than equipment manufacturers, that are in the front line when it comes to public criticism of aviation's environmental impact. The debate on this issue has been "more intense" in the U.K. than in any other country.

BA and Rolls-Royce are offering a joint tender to test alternative fuels. Selected suppliers will provide enough fuel for laboratory tests and a full range of testing on an engine test bed. Results should be available early next year.

Like other airlines, BA supports emissions trading in principle, but he "has serious reservations" about the emissions trading scheme proposed by EU. "I doubt whether any thought was given to the impact on airlines," he said. It threatens to become bogged down in legal challenges. Walsh is also highly critical of the U.K. government's plan for additional passenger duties.

Airbus CEO Tom Enders noted that taxes don't make aircraft more efficient or upgrade fuel efficiency. In fact, they have the opposite effect because such taxes mean less money will be available to airlines to replace aging and less-efficient aircraft.

Meanwhile, Boeing's Carson said he and Enders are in such accord on this issue that they "could deliver each other's speeches." However, communicating the industry's case to the public needs to improve.