Lufthansa may hike fares in view of EU tax | india | Hindustan Times
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Lufthansa may hike fares in view of EU tax

india Updated: Jan 03, 2012 21:22 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Europe’s largest long-haul carrier Lufthansa has asked the passengers to brace for higher ticket prices in view of a controversial European Union (EU) tax that has come into force beginning this month.

Airfares are set to rise world over including India, where the increase could be $50-250 (Rs 2,600-13,300) as a result of the EU-Emissions Trading Scheme (ETS).

Kingfisher Airlines chairman Vijay Mallya had said last week that he was “worried” about the EU tax that has been opposed by countries such as India, US and China.

Local carriers, which fly to Europe, would need to pay taxes for landing in and taking off from European airports based on the type of aircraft. Under the ETS, airlines using EU airspace will have to pay a fee for carbon emissions that exceed a set cap.

Lufthansa said it expects to incur additional expenses of €130 million in 2012. “Lufthansa will have to pass on the costs via higher ticket prices, as recommended by the EU. However, it has no immediate plans to increase this surcharge,” the airline said in a statement.

“The incorporation of airlines in the EU ETS means that European operators are now facing additional costs which will make flying within and via Europe more expensive for passengers,” said Carsten Spohr, member of the executive board of Lufthansa.