April 18, 201214 yr Airlines can profit from the European Union's carbon emissions program by charging passengers higher fares, a new study contends. Do you agree? ------------
April 18, 201214 yr Airlines can always profit from raising fares, unless it causes the number of passengers to go down (by too much). Are you implying that airlines are increasing passenger fares, citing the carbon trading scheme, but actually increasing fares by more than the CTS will cost them. An actually link to the study you are refering too would be good to. Then we could actually read it and see whether we agree with the methods and conclusions of the study, rather than having to rely on a heavily watered down soundbite version of the conclusions. John-Alan Pascoe
April 18, 201214 yr Look what happened last year, when Congress didn't re-authorize funding for the FAA. The FAA could no longer tax passenger tickets, so the airlines raised it's fare to match, and kept the money that should have gone back to the customer. Thanks Tom My Youtube Videos! http://www.youtube.com/user/tf51d
April 18, 201214 yr You're forgetting one of the basic principles of economics Prices will rise or fall in response to what the market will bear. If the customer can obtain a acceptable alternative from a competitor at a lower price they will take their business there. If that competitor isn't recovering their costs they will experience pressure to raise their prices, and their tolerance will depend on their available capital or revenue from other sources. Sometime a business with prices that are too high will fail for lack of customers and/or a business with prices that are too low will fail because they aren't recovering their costs.
April 18, 201214 yr The EU is going out of it's mind for taxing so many ridiculous things. I hope in my life time they come to their senses. Chris Miller
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