Qantas passengers to absorb carbon prices: CEO
Qantas CEO Alan Joyce confirmed a carbon price of between AUD20 and AUD30 (USD20-30) could take AUD100 million off the airline’s annual profit (ABC, 04-Apr-2011). Mr Joyce, who is a member of the government's business roundtable on climate change, has tentatively put his support behind a carbon price but says Qantas still needs to see more details before it gets fully behind the scheme. He said the cost would be passed on to customers and estimates it would be around AUD6 extra per domestic flight. Prime Minister Julia Gillard wants to introduce a fixed price on carbon in Jul-2012, but the Federal Government has not yet determined the tax level.
Qantas: “The ability for us to pass [the carbon cost] on will obviously at the time depend on how robust the market is, but it would be our intention that it would have to be passed on to the passengers, because the margins that we make in this business isn't sufficient enough for us to digest this charge … We believe that certainly should be a given to the industry. We're buying aircraft that are going to be operating for the next 20 years, so its very important for us to have certainty about what the carbon price is going to be." Alan Joyce, CEO. Source: ABC, 04-Apr-2011.