European Union Carbon Tax To Face A Mounting Battle From Countries And Airlines Around The World by Kane Minks

European Union on World Map. Kane Minks

by Kane Minks

The EU airline carbon tax may soon crash to the ground as a coalition of powerful nations threatens to launch a trade war against the European Union. Russia, China, America and India have formed an anti-carbon tax coalition to oppose the EU carbon tax and are planning retaliation against the EU if it doesn’t back down.

The EU’s Emission Trading Scheme (ETS) demands that carriers flying into European airspace pay a tax on carbon emissions. The law came into effect at the beginning of the year. The ETS requires all airlines to give the EU emission data so that a tax can be calculated and collected. Many airlines have told the EU to go fly a kite.

The airlines in the U.S. have requested that President Obama stop the EU action by filing an Article 84 complaint at the UN’s civil aviation governing board, which is called the International Civil Aviation Organization (ICAO). The U.S. airlines, which are represented by Airlines for America, said that an Article 84 action would create a global framework for dealing with carbon emissions. This UN mechanism allows nations to settle disputes.

Eco-fascists and the head of the ICAO oppose the Article 84 action, claiming that the process would gum up the effort to charge passengers and the airlines a tax as soon as possible. The UN and the EU could realize tens of billions of dollars from this carbon scam. The Eurozone, with a number of countries facing imminent economic collapse, is engaged in desperate schemes to prop up their falling house of cards.

Meanwhile, the U.S. Congress is getting into the act by writing a bill that would shield U.S. airlines from the EU carbon scheme. Senator John Thune, a republican from South Dakota, and Senator Claire McCaskill, a democrat from Missouri, have co-sponsored the bill.

Internationally, the EU is standing alone on this carbon scheme and facing severe consequences if it goes ahead with this tax. The U.S. has called this carbon scheme an attack against its sovereignty. The government of India has formally backed its airlines and their decision not to give the EU any carbon data. China has threatened the EU with a trade war. Punishment against the EU could include limiting flights from Europe and refusing to buy aircraft from European manufacturers.

Under the EU carbon tax scheme, passengers will be expected to pay a punitive tax on every ticket they buy. This will increase airline travel expenses and make Europe a less desirable destination for tourism and business. The world is trying to save the EU from its’ big mistake.

Kane Minks

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Airline Industry in a Quandary Over Fuel Surcharges and the Search for More Efficient Planes by Kane Minks

Aircraft leaves a contrail in sky. Kane Minks

by Kane Minks

The airline industry has been adding fuel surcharges to the tickets of passengers for some years, and increasing them as fuel costs jump. Yet, there have been no reduction in charges since 2009 despite decreases in fuel costs.

A study by Carlson Wagonlit Travel found these facts and more, demonstrating that the airline industry has been profiting off their customers through unreasonable fuel surcharge fees. The study found that fuel surcharges have risen 53 percent since 2011, a stark contrast to the 24 percent increase in airline fuel costs in the same study time frame. Clearly the airlines are using the fuel fees as a way to increase profits. They may find it more difficult to justify the exorbitant charges going forward.

A new law requires all airlines based in the U.S. advertise the full fare, which includes all of the components that make up the ticket price. The fuel surcharges must be disclosed, making it more difficult for airlines to justify the exorbitant charges. The new transparency rules may turn passengers off to the idea of taking vacations that require air travel.

Airlines are using hidden fuel fees as a way to stay competitive in tighter markets, and lowering fares in order to lure in more passengers. However, the fuel fees can make up to half of a ticket price for international flights, which may lead to a reduction in the amount of passengers for those flights.

The airline industry is also facing pressure in areas related to the use of jet fuel in the form of carbon taxes from the European Union. The European Union is requiring all flights taking off or landing in Europe pay for carbon dioxide (CO2) generated by aircraft. The program begins next year, and initially provides 85 percent of the cost of required permits for free. The rest can be traded off with less polluting airliners. Countries around the world are balking at the requirement by the EU, and the issue is still not settled. It’s a sure bet the extra charges are going to be passed onto passengers.

Volatility in the cost of fuel and threats of carbon taxes is causing the airline industry to purchase new, more fuel efficient planes. The goal is to reduce the amount of inefficient, older planes that are in the current fleets, and move to planes that get better fuel mileage. Some of the redesigns are expected to get anywhere between 13 to 15 percent improvement in efficiency, reducing the amount of fuel used.

The current state of the airline industry is a tenuous one; especially with the cost of fuel cutting sharply into already low profit margins. The amount of flights initiated around the world is increasing on an annual basis, but it only takes a small action to dramatically affect success and passenger satisfaction.

Article By: Kane Minks