No Fare Reduction Despite Scrap of Carbon Tax Surcharge – Qantas
By Esther Tanquintic-Misa | July 11, 2014 1:03 PM EST
Moreover, it stressed that whatever savings that will be generated from the repeal of the carbon tax of between $2-$7 won't be passed on the consumers.
"Given the level of competition and the unique pressures in the domestic aviation market, we haven't been able to recover the cost of the carbon tax through price increases as we originally intended," Qantas said in a statement.
Qantas isn't alone. Rival airlines Virgin Australia won't also be giving out incentives to its patron flyers.
As expected, consumer groups lashed at the scenario.
"It's not fair. Obviously business should be handing on any savings from the repeal of the carbon tax straight to consumers," Tom Godfrey from Choice told 3AW Mornings. "It's just wrong. The savings should be passed straight through... clearly prices should come down."
"The government made a big deal of the fact that families were going to be better off, but it seems not business is completely ignoring the government."
Qantas explained the carbon surcharge was added on to fares and then retained to enable the airline monitor how much the tax was costing its operations.
"Our all-inclusive fares have not risen, though we have kept a small carbon surcharge on domestic fares so that we can keep track internally of the cost of the tax," the airline said. "This has now been removed, but there won't be any change to the prices that customers pay."
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- U.S. Flights to Israel Now Lifted, Flights To and From Tel Aviv Resume – FAA
- Reserve Bank of New Zealand Raises Interest Rates Due to 'Unsustainable' Kiwi
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon