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Lufthansa passengers to face carbon permits costs burden

Lufthansa recently indicated that its passengers might have to share the burden of the expected $169 million costs for carbon permits to be needed this year under a new European Union Emissions Trading Scheme (ETS).

Germany’s biggest carrier has become the first airline to reveal its plans on how it is going to cope with the additional burden. The airline said that it has decided to add the costs from the ETS to its fuel surcharge.

Lufthansa in an official statement said that in the wake of intensive competition, particularly from companies from non-EU countries on the carbon emissions front, as well as keep flight operations smooth in view of soaring fuel costs, it finds itself helpless and is forced to pass on the additional financial burden via ticket prices, as suggested by the EU.

The airline has indicated that it needs to purchase 35 percent of the permits required for 2012, and has therefore to pass on the burden to its customers.

The airline has, however, said that it doesn’t plan to raise its existing surcharges in the short term which was increased in December 2011. It had increased ticket prices between $133.14 and $159.24 per flight leg for intercontinental flights and to $40.46 for domestic and European flights. The airline had raised airfares citing higher fuel costs.

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