India opposes Europe’s aviation tax set for the New Year

Durban, South Africa: Almost a week has passed since the chaotic climate change negotiations wrapped up here. But one unresolved issue from the U.N. talks will rear its head on the first day of the New Year. Experts are even concerned about it triggering a trade war between nations.
From Jan 1, the European Union will levy a carbon tax on aircrafts landing and taking-off from the airports inside the bloc. By some estimates CO2 from air travel constitutes 3 percent of the total greenhouse gases. The money, according to the EU, will be invested in countering climate change. There is presently no money in the Green Climate Fund, which has to be financed by developed countries to the tune of $100 billion a year starting from 2020.
During the climate conference, EU diplomats pushed other countries to accept its new scheme. India and others, however, slammed the carbon tax as unilateral trade barrier. “The attempts like tax on aviation are really disguise for trade barriers,” declared Indian Environment Minister Jayanthi Natarajan.
Three Indian airlines–Jet, Kingfisher and Air India–have regular flights into Europe. Kingfisher Airlines already registered losses of $93 million for the three months ending in September, which it blamed on higher fuel costs. The tax could cost these airlines millions of dollars annually as well as higher ticket prices for passengers.
The Geneva-based International Centre for Trade and Sustainable Development estimate–for a short haul ?ight of 480 km, the ticket price increase is between €2 and €4; for a medium haul ?ight of 1,400 km it is between €3 and €8, and for a long haul ?ight of 6,400 km it is between €10 and €30 ($13 and $39).
16/12/11 Betwa Sharma/Smart Planet

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Categories: Foreign Dec 2011, Indian Aviation- In General Dec 2011