Airlines warn on fuel tax plans

Airlines have reportedly reacted angrily to plans to introduce a tax on aviation fuel, with some saying a third of European carriers would go bust within 12 months. According to The Guardian, finance ministers at a weekend meeting said they favoured a kerosene tax as a way to raise money for the world’s poorest countries. Environmentalists agreed that a tax on airline fuel is essential if Britain is to meet its carbon emission targets. But airlines are reportedly angry at the suggestions. A spokesman for EasyJet is quoted as saying: “If they want to do something for the environment, fine. But if they are just going to stick this tax on top of what we already pay, the industry would be very angry. “Fuel prices are already incredibly high and no one is making any money. An additional tax would drive a third of airlines in Europe out of business in a year.” The Chancellor of the Exchequer, Gordon Brown, reportedly says he would be prepared to consider such a move – but The Guardian suggests that any such move would not be confirmed before a General Election this year. Tony Bosworth, of Friends of the Earth, commented: “The only reason that cheap flights are possible is because the airline industry is undertaxed and one reason for that is that fuel is untaxed.” Report by Tim Gillett, News From Abroad Ltd