Qantas announced (11-Jul-2011) it expects the introduction of a carbon price system from 01-Jul-2012 to have an estimated cost of approximately AUD110 million-115 million in the financial year ending 30-Jun-2013. The airline said domestic airlines will be exposed to the full starting carbon price of AUD23 per tonne through an increase in aviation fuel excise from Jul-2012 and will not have access to transitional assistance or compensation arrangements. International aviation fuel will be excluded from the carbon price scheme. Based on the estimated additional costs, the Qantas Group expects the price of a single domestic flight sector will increase on average by approximately AUD3.50 in FY2013. Fare increases will vary depending on sector length, Qantas said, with all fare increases to be "communicated transparently to consumers". [more]
Qantas issues statement on impact of carbon price
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround. After the lows of 2011 and a domestic competitive bloodbath, the Qantas Group has seemingly become a solid and sustainable story, now looking forward to a new future marked by Boeing 787s, arriving later in 2017.
Air New Zealand has continued along its thoroughly profitable path, while Virgin Australia and its Tigerair Australia subsidiary have struggled to achieve profitability in the new environment – now with a more settled share registry and emerging strategy.
After a mineral boom that carried Australia through the difficult years of 2008-2010, the country’s GDP growth has since slipped to 1.8% in 3Q2016 calendar year, with an outlook for 3.0% for the full FY2017. By contrast, New Zealand’s Treasury expects GDP growth of 3.6% for 2016 and has forecast a 3.5% increase in 2017.
Air Canada and Virgin Australia codeshare, in a North American market dominated by Qantas
From early 2017 Air Canada and Virgin Australia introduce a tidy new partnership. Virgin Australia receives improved access to Canada – a market its JV partner Delta cannot sufficiently cover from their shared Los Angeles gateway. Air New Zealand's sixth freedom option, via Auckland, is the third largest transportation choice by Canadians visiting Australia. Since Virgin noisily fell out with Air NZ, the Australian airline is looking to reassert itself in Australia-North America markets that it had quietly let Air NZ dominate. Virgin has already announced plans to resume trans-Pacific services from Melbourne, which Air NZ took traffic from.
Air Canada is growing in Australia, expanding from its 2007 Sydney service with a 2016 Brisbane service, and perhaps soon Melbourne as well. Air Canada needs a partner for domestic and New Zealand connections as it expands its footprint and grows ahead of market demand. There is some conflict, since Air Canada - as it does for its expanding Asia and Europe presence – will look for USA sixth freedom traffic. Air Canada has favourable connections via Vancouver to a handful of American cities, including New York.