Carbon Tax costs Virgin and Rex $30 million
Virgin Australia (VAH) has felt the cost of the carbon tax, announcing a net profit after tax of $23 million, down $28.8 million on the same period last year. The company estimates the impact of the carbon tax at $24.4 million. But not to worry says Combet, the business is still profitable;
AUSTRALIA’S aviation industry is profitable and will continue to grow despite Virgin Australia’s complaints about the carbon tax, federal Climate Change Minister Greg Combet says.
Virgin on Tuesday announced a drop in interim net profit and its chief John Borghetti said a competitive market meant the $24.4 million cost of the carbon tax could not be passed on to passengers.Combet says just pass it on to consumers but Virgin say intensifying competition in Australia’s domestic travel market drove down ticket prices and stopped it from passing on the carbon tax to customers. Rex Aviation has felt the cost of the carbon tax as well, announcing a 36% drop in profits and they lay the blame squarely on the Gillard government’s carbon tax. I wonder how many years it will take and how many billions of dollars will be lost before the ALP accept the carbon tax is poisonous.