What impact will the recent EU decision to include airlines in the Carbon emissions scheme have on the Ind?
The EU recently advised that airlines should be included in the Carbon emissions trading scheme. There is talk of imposing a tax per plane / passenger, but also talk of a simple quota system like with current EU industry where companies going over their quota will have to source further carbon "credits" from the spot market (other companies). Airline share prices have barley budged with this news. What are the risks, and does anyone have any idea what the extent of the threat to margins these quotas might have based on current industry quotas? I am an investor in some of the European airlines and am not sure to continue holding.
if this legislation is implemented the profits of the companies will relatively remain unchanged, with a further surcharge over and above the price of the seat, airport tax and fuel surcharges levied against the passenger.
until the quota’s are released it will be hard to ascertain whether they are realistic for these companies to adhere to and whether further penalties may be levied against the company, if this is the case how these fines are recouped is unknown until the legislation is finalised.
its a hard one to call i would say at the moment, though if i were in your shoes if there hasn’t been a knee jerk reaction to the news there is either confidence the implications will not have too much effect or, its a good time to get out and search alternate investment opportunities if only for the short term to protect against possible market crashes after the legislation is formal applied
if this legislation is implemented the profits of the companies will relatively remain unchanged, with a further surcharge over and above the price of the seat, airport tax and fuel surcharges levied against the passenger.
until the quota’s are released it will be hard to ascertain whether they are realistic for these companies to adhere to and whether further penalties may be levied against the company, if this is the case how these fines are recouped is unknown until the legislation is finalised.
its a hard one to call i would say at the moment, though if i were in your shoes if there hasn’t been a knee jerk reaction to the news there is either confidence the implications will not have too much effect or, its a good time to get out and search alternate investment opportunities if only for the short term to protect against possible market crashes after the legislation is formal applied
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It’s going to make the airfares go up. Great! NOT
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