Carbon tax hits regional airline
28-November-2012
Warren Truss MP -
Joint release with Greg Hunt
The real cost of the Carbon Tax on business has been highlighted by Australia’s largest regional airline, Regional Express.
The airline, at its annual meeting has told shareholders that the Carbon Tax was one of the factors in an anticipated fall of up 35 per cent in its pre-tax profit for this financial year.
Adding a Carbon Tax as another cost to business, which is already facing significant challenges in a slower market, makes a bad situation worse.
Rex has indicated that the Carbon Tax, along with additional security charges and the removal of an en route rebate from the Federal Government, would cost the company up to $5 million.
The warning to the market by Rex airlines, is another example of how the Carbon Tax is having a significant impact on businesses across Australia and in particular, regional communities.
The Carbon Tax is a major additional cost for air travel which hits those in remote areas the hardest.
It becomes a de facto financial penalty for regional communities and further isolates those who can’t afford the extra cost of flights.
The major airlines, Qantas and Virgin Australia, increased fares from 1 July when the Carbon Tax started, to cover the cost of the Carbon Tax on flights.
Qantas estimates the cost at over $100 million in the first year.
The next election will be a referendum on the Carbon Tax and the Coalition if elected, will make the scrapping of the Carbon Tax the first order of business.