Transport written question – answered at on 4 March 2010.
To ask the Minister of State, Department for Transport what assessment he has made of the likely effect on airline profits on the inclusion of aviation in the EU Emissions Trading Scheme.
A review of the available evidence found that, while some studies were suggesting that airlines could potentially pass on 100 per cent. of the costs of EU ETS allowances to passengers, other studies suggested that the level of cost pass on would depend on a number of factors, such as the level of competition faced on individual routes.
The impact on airline profits in practice will only become apparent after aviation has joined the EU ETS from 2012.
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