They worry about taxes and government regulation in security and emissions
State regulation in airport security, emissions and taxes will be some of the main issues negatively impacting global airlines’ revenues over the next 18 months. This is one of the findings of a bi-annual survey of executives at nearly 80 regional and global airlines worldwide. The survey, conducted by Sabre Airline Solutions, asked them to rank what positively and negatively impacts airline revenue.
Many airlines around the world are opposed to the EU Emissions Trading Scheme, which requires airlines flying into European airspace to pay for carbon emissions. Airlines have also faced a number of proposed or new airline taxes, which threaten to considerably increase the cost of air travel, depressing travel demand. Airlines are also under fire from passengers for increasingly lengthy airport security measures. This is the first time that government regulation ranks in the top three challenges that negatively impact airlines’ business revenues.
[pictured: Trent-900 fan blade; courtesy Qantas]