Virgin lifts fares to cover carbon tax

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Virgin lifts fares to cover carbon tax

By Matt O'Sullivan

Virgin Australia will charge passengers as much as $6 extra for domestic flights to cover the cost of the federal government's carbon tax.

From July, when the tax comes into force, Virgin passengers will pay $1.50 extra for a flight of up to 900 kilometres, $3 for up to 2000 kilometres and $6 for longer domestic flights.

Australia’s second largest airline said the surcharges were consistent with its initial modelling last year when it estimated the average increase per flight sector would be $3.

Qantas released the details of its surcharges this month, revealing that it would charge passengers between $1.82 and $6.86 extra on a one-way ticket to cover the cost of the carbon tax.

Virgin also said today that it would put on a $3 surcharge to cover the EU's emissions trading scheme for flights on which it codeshares into and out of Europe. That surcharge will apply from March 1.

Virgin flies only as far as Abu Dhabi in the United Arab Emirates, from where its passengers can transfer to flights aboard alliance partner Etihad to multiple destinations in Europe.

Qantas has also slapped a $3.50 surcharge on a one-way ticket to London and Frankfurt to cover the higher costs arising from the emissions trading scheme in Europe.

The airline has put the total cost of Australia's carbon tax at as much as $115 million next financial year.

mosullivan@smh.com.au

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