Rising taxes offset airlines' cost-cutting measures

12/15/2008 | Aviation Daily

Taxes and fees on the airline industry are rising sharply, according to IATA, offsetting hard-won gains by the carriers as they ground planes and slash schedules. In the U.K. alone, restructured air passenger taxes will increase costs by some $2.9 billion, while air traffic control costs have soared by more than $400 million in Eurocontrol states. The biggest tax increase is yet to come, when Europe's Emissions Trading Scheme goes into effect in 2012.

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