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Virgin Australia Advises of Surcharges in Response to Carbon Pricing Schemes
28/02/2012Virgin Australia today announced details of surcharges that it will implement in response to the Australian and European Union (EU) carbon pricing schemes
Australia
As of 1 July 2012, the Australian carbon pricing system comes into effect with a starting price of AUD$23 per tonne of carbon.
Therefore from 1 March 2012, the following surcharges will apply to domestic Australian flights on/after 1 July 2012. These surcharges are consistent with the initial modelling Virgin Australia announced in July 2011, estimating that the average increase per sector would be AUD$3.00
| Zone | Distance (kms) | Surcharge |
|---|---|---|
1 | 1 – 900 | AUD$1.50 |
2 | 901 – 2000 | AUD$3.00 |
3 | 2001+ | AUD$6.00 |
European Union
As of 1 January 2012, under the EU Emissions Trading Scheme (ETS), airlines must pay a carbon price by purchasing “carbon credits” to cover a proportion of the carbon dioxide emissions generated by flights to and from EU airports.
Virgin Australia sells codeshare flights with Etihad Airways from Abu Dhabi to a range of destinations that are included in the EU ETS .
Therefore from 1 March 2012, there will be a surcharge of USD$3.00 per passenger for all Virgin Australia codeshare flights into and out of Europe, which will apply to flights on/after 1 March 2012. The surcharge is applicable on flights into and out of EU countries only.
