- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
Comments (0)
Print
Save/ShareDelta, United, American, and US Airways have added a $6 round-trip surcharge for flights between the U.S. and Europe since January 4, reports the AP. Carriers are passing on the extra cost of complying with a new European Union pollution management scheme.
Officially, airlines haven't explained the purpose of the $6 surcharge. But aviation experts say the fee is meant to compensate the airlines for payments to the European Union. The charge is essentially a new jet fuel tax. Since January 1, airlines in the U.S. and other countries must pay the European Union for certificates for permission to emit carbon dioxide in European airspace.
The rule applies to foreign airlines operating the route, too. So, Lufthansa says it will raise current fuel surcharges soon for transatlantic flights that depart from the U.S.
Strangely, the E.U. has not sent any bills to the airlines yet, given that the program has just started. So, the airlines don't exactly know how much they need to pay. That hasn't stopped the airlines from estimating the cost of buying carbon dioxide (CO2) emission credits and passing the cost along to passengers.
Infuriatingly, airlines may be profiting from the surcharge, according to Reuters. A study released today and part-funded by the U.S. Federal Aviation Administration has revealed that airlines may be able to use the surcharge as a way to artificially increase ticket prices, collecting "windfall profits of $2.6 billion between now and 2020."
Ordinarily, government laws prevent airlines from colluding in price rises. But airlines will effectively be able to charge more for their services without having to add additional costs or engage in a price war with competitors. (Plus, the income from the fees isn't taxed.) The study, published the Journal of Air Transport Management and done by researchers mathematicians from the Massachusetts Institute of Technology, predicts that profits for U.S. carriers may increase.
Airlines that operate older planes and that don’t fly as many business-class and first-class passengers will be the most affected by the new law, say analysts.
The EU defends its charges by saying that it’s not fair that foreign airlines are allowed to pollute their airspace without paying any price. Hence, the new scheme.
SEE MORE FROM BUDGET TRAVEL
Tests Show FAA Should Relax Rules About Electronics on Planes
How the Most-Hated Airline Fee Became a Huge Success
Euro Dips Under $1.30, Making Europe Affordable
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.
