The cost of flying

The cost of Flying


More taxes and Fuel charges

The Economic Times website posted an interesting article about the prospect of an increase in the cost to travel to India.  The increase comes in direct result of the airline carriers passing on the cost of the new carbon emissions tax coupled with the increase in fuel costs.  The carbon emission tax has been in debate for some months now and has pitted country against country in the battle to determine what is fair and how these costs will be structured.

The European countries have seen a number of countries push back against the new emissions taxes proposed and this has created a situation that will defiantly raise the cost of flying.   Unfortunately it will ultimately be the consumer that has to foot the bill for these taxes making it more expensive to travel.  The travel industry has taken quite a few hits over the last decade and some of those problems have resulted in fewer airlines available to provide to the needs of travelers.

With new taxes, higher fuel charges, and economies suffering around the globe, travel could see an even greater loss of revenue across the industry.  An increase in tax and fuel will not only affect airlines, but also the other industries that support travel such as hotels, rental car companies, and tourist businesses that cater to a traveling influx of tourists.

With the recent airline mergers of United absorbing Continental and Southwest purchasing Air Tran, and the financial woes of American Airlines, the US based airlines now have less competition to worry about.  The next few months will show how much the consumer is willing to pay to continue to use air travel.  It may be that we see another decline in airline travel and overall vacationing in foreign locations which doesn’t bode well for locations that rely heavily on the tourist dollar to keep their businesses alive.