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ACCC grills airlines on failure to pass on carbon savings

October 31, 2014 Corporate, Headline News 1 Comment Email Email

egtmedia59The Australian Competition and Consumer Commission (ACCC) wants a full explanation from domestic airlines as to why they have not passed onto consumers the savings from carbon tax abolition.

Qantas, Virgin Australia and Regional Express all stated that the carbon tax would cost them a lot of money and they would have to pass the costs on to consumers.

When the tax was repealed, however, the airlines said they had actually absorbed the costs so there was nothing to pass on.

The ACCC is sceptical.

While the consumer watchdog has not come out on the matter publicly, it has sent the airlines “please explain” letters.

A report in Melbourne’s Herald Sun yesterday said ACCC commissioner Rod Sims was not satisfied with the airlines’ responses to the letters and would be investigating further.

The carbon tax was repealed on 1 July 2014 and corporations found to have breached the legal requirement to pass the savings back to consumers can be fined up to AUD 1.1 million.

The ACCC feels that price increases imposed when the carbon tax bit should become price decreases now that it has gone.

Written by : Peter Needham

Currently there is "1 comment" on this Article:

  1. AgentGerko says:

    What about reducing some fuel levies as well? These have reached ridiculous proportions.

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