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March 10, 2014

Qantas: How bizarre can this get?

by John Kelly

Apparently, the Prime Minister was not aware of either the surcharge or the ACCC’s intention to monitor its removal. If he did, he would not be saying that the carbon tax was ‘a drag on Qantas that it does not need,’ because clearly it isn’t.

The Australian Independent Media Network

qantas If you haven’t been paying close attention to the goings on at Qantas over the past week, give yourself a tick. I’m still trying to get my head around it and it’s making me nauseous. Let me see if I’ve got this right.

On the Qantas website it says, “When the carbon price was introduced, Qantas added a small surcharge to domestic fares to reflect the impact on our cost base and attempt to recover some of that cost. Since 1 July 2012, this cost recovery has been unsustainable due to the challenging conditions in the Australian aviation industry.”

So Qantas says it has recovered the cost of the carbon tax by placing a surcharge on domestic flights since 1 July 2012. However, it also says recovering that surcharge has been unsustainable because of fierce competition. But, correct me if I’m wrong, the surcharge hasn’t been removed; it is still…

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