SA:Airline says tax to impact regional travel

AAP General News (Australia)
08-28-2011
SA:Airline says tax to impact regional travel

Regional airline Rex Regional Express says the basic maths of the carbon tax will add
just $2 to the price of every air ticket, but that could be enough to turn customers off.

The airline says the tax would cost the company $2 million in the first year.

Chief operating officer CHRIS HINE says experience has shown that small increases,
$2 here or there, could have an impact on demand and if they stopped just one person flying,
that would force tickets prices up further or threaten services.

He says cuts to regional airlines services or higher ticket prices would also push
more travellers into cars, defeating the purpose of the carbon tax.

Opposition Leader TONY ABBOTT visited the Rex operations in Adelaide today and said
one of the biggest impacts of the carbon tax on regional Australia would be on air travel.

AAP RTV tjd/ar

KEYWORD: CLIMATE REX (ADELAIDE)

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