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July 05, 2006

Kiss The European Airlines Goodbye

The Luddites in the EU Parliament have outdone themselves with this brilliant legislation:

AIR passengers will be charged up to £40 extra for a return ticket within Europe to pay for the environmental impact of their journeys, under plans approved by the European Parliament yesterday.

MEPs voted in favour of the “immediate introduction” of a tax on jet fuel for flights within the 25 member states of the EU. The charge would double the cost of millions of budget airline flights.

This is going to kill tourism in Europe, and kill many people who will now drive from place to place instead of flying.

The MEPs said that the scheme should cover all flights arriving at or departing from EU airports rather than just intra-EU flights, as had been proposed by BA. But the scheme is likely to be limited to flights within Europe in the early years to avoid legal challenges from the United States and other countries. MEPs also accepted the proposal for a separate environmental tax to cover the impact of nitrogen oxides and condensation trails emitted by aircraft.

I would like a tax on the greenhouse gasses emitted by various politicians around the world: everytime on of them opens their mouth to talk they get charged $1.

We'll make billions.

God, it's stunning how far they want to regulate, and tax, natch, everything.

Posted by Mr. Bingley at July 5, 2006 05:55 PM

Comments

If this flies (heh!), the European economy will likely tank. Or at least seriously decline.

But I have to wonder how this will affect flights to and from CENTCOM (Kuwait, Iraq, etc) -- those are largely charter. And all of them land somewhere in Europe coming and going.

Posted by: The_Real_JeffS at July 5, 2006 07:37 PM

It seems it only applies to commercial flights within Europe, at the moment.

Posted by: Mr. Bingley at July 5, 2006 07:57 PM

Perhaps. And certanly only for the moment. But there's a tax on jet fuel mentioned in the article. That's gotta be big as well. It's what the Luddites do, y'know.

Posted by: The_Real_JeffS at July 5, 2006 11:22 PM

You will probably see airports just outside the EU expand greatly, such as those in Switzerland as airlines and passengers work around the taxes. You will probably even see hubs move.

There is another tax that the French are collecting that adds more Euros to the price of a ticket. That tax is to help the third world. Goodbye Paris as a major hub. Not for anything but intra-Europe flights were already insanely expensive compared to flying to the US from there. In a strange twist of fate, there is probably a good chance that this new tax will actually increase CO2 emmissions as planes attempt to fly around the regulations. (Say London-Geneva-Berlin, etc.)

Posted by: Fred Fry at July 6, 2006 08:00 AM

Hey Fred. I think you're right.

I wonder if they'll tax toilet useage next..."Messr., you were in European airspace when you flushed, so there's a 3 Euro Pee Fee assessed..."

Posted by: Mr. Bingley at July 6, 2006 08:48 AM

I wondered about that as well, Fred. But it would be tricky, to say the least, since aircraft landing in Switzerland would need permission to fly through EU space. The Euroweenies might get hissy about that. Might be some sort of tariff war as a result.

And there aren't many choices for new hubs. From this EU map, Norway, Luxemborg, Switzerland, and the Baltic states are the only options. Could be touchy, realigning the air routes like that. Not to mention building up the transportation infrastructure to support those new hubs.

But certainly possible. We'll have to wait and see.

Posted by: The_Real_JeffS at July 6, 2006 09:36 AM

Sounds like Turkey might clean up, if they exit the EU. This might accelerate the break-up of the EU for poorer countries that depend on tourism.

This smells like the cigarette settlement to me - the states cleaned up based on what they claimed were the damages caused by smoking. That argument was crap from the beginning, if you consider that due to early death, even with costs for palliative cancer care, smoking actually lowers healthcare costs in the long run - you die of cancer at 55, you don't get arthritis, heart disease, diabetes, glaucoma, and erectile dysfuntion in your 60s, all of which cost money to treat, and last for a long time, relative to terminal cancer. Leaving all that aside, most of that settlement money got poured into the general revenue fund. Made a horse's ass out of the healthcare budget argument.

Same goes here - how much of that tax revenue is actually going to go for pollution control? None of it, I'll wager.

Posted by: John at July 6, 2006 10:56 AM

Absolutely none, John. I agree completely.

Posted by: The_Real_JeffS at July 6, 2006 11:31 AM

3 Euro Pee Fee assessed...

On Air France, wouldn't that be a "oui-oui" fee?

Posted by: tree hugging sister at July 6, 2006 11:37 AM

Hahahahaha!!! The EU is a schizophrenic cannibalistic bureaucracy, eating its own limbs.

Posted by: DirtCrashr at July 6, 2006 12:10 PM

"But the scheme is likely to be limited to flights within Europe in the early years to avoid legal challenges from the United States and other countries."

I bet. Legal challenges like "In a pig's eye, you crazy bastards! Try and collect!"

Posted by: mojo at July 6, 2006 02:12 PM