Canadian airlines tell Ottawa carbon tax will hurt revenues and domestic routes

Canadian airlines tell Ottawa carbon tax will hurt revenues and domestic routes
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Canadian airlines are urging Ottawa to delay the Jan. 1 imposition of the federal carbon tax, which they warn will boost airfares and push passengers to airports across the border.

The National Airlines Council of Canada sent letters to three federal ministers Friday cautioning the government about the reduction the levy would cause to revenues as well as marginal domestic routes.

Lobby group president Massimo Bergamini says a carbon tax is “the worst tool” to reduce emissions, with fuel an inflexible demand that often amounts to airlines’ biggest expense.

Prime Minister Justin Trudeau has committed to impose a carbon tax on provinces that lack their own form of pricing for greenhouse gas emissions.

As it stands, airlines will be required to pay the levy on flights within provinces that fall under the federal system. Meanwhile the government will work with jurisdictions to adopt a pricing scheme for interprovincial flights.

The governments of Saskatchewan Premier Scott Moe and Ontario Premier Doug Ford are each challenging the federal carbon tax in court.

The Canadian Press

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