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Australian ETS scheme to cost Qantas and Virgin Blue USD99 million and USD29 million in FY2013

3-Nov-2009 10:46 AM

Deutsche Bank, in a new report on the impact of the Australian Federal Government’s Emissions Trading Scheme, stated airlines may be able to pass on only approximately a fifth of the cost of the scheme, which is expected to reduce profitability by up to 19% in FY2013 (The Australian, 03-Nov-2009). According to Deutsche Bank, the full implementation of the Carbon Pollution Reduction Scheme will cost Qantas AUD98.6 million in FY2013 and reduce after-tax net profit by 16.4%, while Virgin Blue will pay AUD29.4 million, resulting in a 19.1% reduction in profit levels.