SA DOMESTIC airfares
could increase
as a result of the
government’s plans to
introduce a carbon tax on
domestic airlines, which
could be followed by a
carbon tax on international
flights.
National Treasury has
confirmed that emissions
from domestic flights
will be subject to its
domestic carbon tax
regime. According to
Chris Zweigenthal, ceo of
the Airlines Association
of Southern Africa, the
domestic carbon tax regime
will be implemented in
2017.
However, administrative
complications could
arise for SA airlines that
operate both domestic and
international routes should
South Africa decide to
retain its domestic carbon
tax once an international
carbon reduction solution
is in place.
International negotiations
on the aviation sector
in response to climate
change are being dealt
with by the International
Civil Aviation Organisation
(ICAO) and a global marketbased
measure (GMBM) is
under consideration, says
Treasury.
Chris says, aside from
a tax, the GMBM could
come in the form either of
carbon offset programmes
or emissions trading
schemes. “Iata is looking
to introduce one solution
as agreed on by all states
around the world,” he says.
June Crawford, ceo
of Barsa, says a way
forward in terms of the
international solution
will be determined at
the upcoming 39th ICAO
assembly, taking place
between September 27 and
October 9.
Treasury will then have
a follow-up discussion
with the Department of
Transport and the industry
in early October to consider
the outcomes from the
ICAO meeting.
As ICAO recognises
that domestic situations
around the world may
differ, each state has
the option of applying
the domestic solution it
deems necessary. National
Treasury says its proposed
domestic carbon tax regime
could be incorporated
within the solution decided
on for international air
services for this sector at a
later stage.
But Chris says the airline
industry is opposed to
a separate domestic
carbon tax and believes
the international solution
should be applied
domestically so airlines
aren’t required to manage
different solutions around
the world. “This would
increase administrative and
cost burdens on airlines,”
says Chris.
“Airlines would need
to recover these costs
in some way, whether
through increased fares
or improved efficiencies
determined by each airline
in question.”
