Monday, September 12, 2011

Aerial mustering and firefighting could cost more under carbon tax

The Flying Doctor is exempt from carbon tax, but most other regional aviation is not.


The regional aviation sector says mustering cattle and fighting bushfires from the air will cost more from July next year, if the carbon tax gets through Federal Parliament.

The 18 bills that make Clean Energy Future package will be introduced today.

The package includes an exemption for fuel used in emergency medical flights, like the Royal Flying Doctor Service, but not for other rescues and emergencies.

Chief executive of the Regional Aviation Association, Paul Tyrrell, says airlines will have to put up ticket prices, because fuel could go up by 6 cents a litre.

"Across our members, our conservative estimate is around $11 million a year extra in fuel costs."

But the policy think tank, the Climate Institute, says global oil prices are rising anyway, and play a greater role than carbon tax in pushing up airline ticket prices.

Emissions from Australian domestic air travel are expected to more than double by 2030, according to government figures.

The Climate Institute's William McGoldrick welcomes the legislation as a way to set up a cleaner energy future.

"Aviation is one where there is a good opportunity for airlines to invest in alternative fuels and in much greater levels of fuel efficiency, and if they do that, they can dramatically cut their pollution liability and this about encouraging them to do that."

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