Australia: New CO2 Taxes Hit Travelers

New Australian CO2 Taxes Hit Travelers

Australia recently passed a new carbon dioxide tax on air passengers in an effort to combat what the Labour government sees as an epidemic of climate change. Rather than hurting the bottom line of airlines, Qantas has already led the way in passing those costs along to consumers. According to Air Transport World, the emission tax "will cost Qantas up to (U.S. $124 million) a year and passengers will foot the bill."

Qantas said in a statement, “In the context of the significant challenges facing the global aviation industry, the Qantas Group will be unable to absorb the additional costs associated with the carbon price and there will be a full pass-through to customers.” Those costs are expected to add between A$3.50 and A$8 per flight segment, further burdening the Australian visitor with additional travel costs.

What effects the new carbon tax will have on air travel demand remains to be seen, though European air passengers have already altered travel arrangements to avoid German carbon taxes. Australia's center-left government will either prevail in expanding taxation into a new frontier, or be forced into an embarrassing retreat.

Posted by Nick Stone on 1:35 AM. Filed under airlines, Australia, global warming, Qantas, World . You can follow any responses to this entry through the RSS 2.0