Back to the original topic. The Carbon Tax has been here for a week now and it's been a big non-event.
There were a couple of articles in the paper about businesses (Brumbys the first one) using Carbon Tax as an excuse to price gouge customers, but apart from that not a lot.
Here's how the Carbon Tax will affect aviation.
- The cost of fuel will rise by about 4.5 cents a litre, which is about 3%.
- The cost of fuel is typically something like 30% of the total cost of aviation.
- The net effect is that Carbon Tax might add, say, 1% to the cost of aviation in Australia.
The price of oil-based fuels in Australia has fallen in recent months due to the strong Australian dollar, meaning overall fuel prices have probably fallen.
NET EFFECT: somewhere between nil and a tiny bit.
The Carbon Tax was a big non-event for Australian aviation.