Dr Dave, a good post, thanks for your input.
I think most of us here agree on the polluter pays principle. What we will not accept is the proposed increase of 40 pounds (at least) on tickets within Europe, simply because this will not only limit future growth, but will force airlines to downsize dramatically. Also bear in mind that airlines operate on very low yields (compared to their cash turnover), so any increase in tax can have quite dramatic effects. Of course, airlines can transfer some of the cost onto their passengers, but there is a limit to this.