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Taxes, airport security will hurt travel: Sabre

Thursday, 19 January 2012

Government imposed regulations and emissions taxes are among the top issues that will hurt air travel over 2012, according to a recent industry research.

A bi-annual Sabre Airlines Solutions survey of up to 80 regional and global carriers worldwide found that 72 percent of respondents agreed that Government regulations would affect the industry this year.

Among the largest concerns is the recently launched EU Emissions Trading Scheme (ETS) tax which requires carriers flying into the European region to pay a certain amount for its carbon emissions.

The tax sits on top of the UK’s ADP tax which charges airlines by the distance.

Carriers responding to the survey explained the imposed taxes continue to threaten the cost of travel which results in a reduction in travel demand and causes an unstable economic environment.

Sabre chief executive Sam Gilliland said the Government’s should consider alternative policies to reduce carbon emissions rather than charge airlines who are already investing heavily to reduce their own carbon emissions.

“...governments would be better placed having more sustainable policies, such as incentives for the research and development of alternative fuels and adopting policies around NextGen air traffic control,” the CEO stressed.

Tight airport security is also playing a role in hurting air travel, according to the report, with 59 percent of respondents explaining waiting in queues is putting a damper on demand, while 81 percent of airlines say fuel will bring them down in 2012.

On a more positive note, customer loyalty and retention is a challenge airlines have pinned to have positive impact on air travel this year as well as IT investment and revenue/yield.

“Travel plays such a critically important role in a healthy global economy and we should all be focused on finding ways to make travel easier and more accessible without compromising security and the health of the industry,” Sabre’s head added.

“While some global governments are grappling with how to solve economic problems, they must remember to not bite the hand that feeds them.”

Source = e-Travel Blackboard: N.J
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