Posts Tagged ‘Airfares’

New tax could make air travel too costly

Friday, September 11th, 2009

The Government’s advisory on climate change has said that tens of billions of pounds would need to be raised through flight taxes to compensate developing countries for the damage air travel is doing to the environment.

Airfares should rise over time to deter air travel and to ensure that carbon dioxide emissions from aviation fall back to pre-2005 levels, the Committee on Climate Change said.  The committee also believes that airlines should share the burden of meeting Britain’s commitment to an 80 percent emissions cut by 2050.

The report says that the cost per passenger of compensation would initially be small, but would eventually reach a level to discourage people from flying, and industry estimates suggest that the average passenger would pay less than £10 per return ticket when the EU joins the trading scheme in 2010, but would rise over time.

The committee has proposed a global limit on aviation emissions in which airlines are required to buy allowances and revenue generated would be given to developing countries to help them adapt to climate change.

Under the proposals, air carriers would be given free carbon permits allowing for 85 percent of their emissions but will have to purchase the remaining 15 percent.   The committee says that they should have to pay for all their emissions, but this would more than double the cost to passengers.

Companies cutting back on business travel

Thursday, August 27th, 2009

American Express has said corporations continued to tighten travel spending and frequency in the second quarter as airlines faced heavy competition in a reduced market for business travellers.

Airfares across the globe dropped on average by 19% to a four-year low during the second quarter as businesses encouraged their employees to fly economy class rather than business.  Domestic airfares within the US also dropped by 18 percent to $212, the lowest it has been since at least 2003.

The statistics were obtained from the purchases information at American Express’ business travel division.

The data also showed that hotel rates went up by 6 percent as European cities also had increased occupancy during the second quarter, but dropped by 12% a year earlier.  In the US, a 2 percent decline was recorded in paid rates in the quarter, but remained steady from the year before.

American Express also noted that the average price of car rentals has decreased by 3 percent in both the second quarter and for the year.

The company collected the data on mean prices for air, hotel and car rental services by major cities and classes of service through aggregate analysis of its worldwide database of purchase information.

Thanks to CNN for the above quotes and figures.  For more information on this article visit CNN.com