EU jet fuel tax shelved by International Civil Aviation Organisation

Airline Industry Information, Oct 11, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Talks in Montreal, Canada over the future of a European Union tax on jet fuel have seen the proposal shelved until at least 2007 after negotiators from several countries blocked the move.

The International Civil Aviation Organisation assembly decided to shelve the issue after the US, Brazil, China and Russia all blocked any global move towards aviation fuel taxes. European airlines have also said that they would fight any move to introduce a kerosene tax.

Aircraft fuel prices have already risen dramatically in recent years and most airlines could not afford another cost burden after already raising ticket prices to cope with increased costs. Incoming EU transport commissioner Jacques Barrot had indicated that the issue of introducing a kerosene tax could be re-examined, reports EUpolitx.com.

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