Royal Jordanian EU carbon tax surcharge unsettles Indian forwarders

2012 03 05

ROYAL Jordanian Cargo is preparing to levy a surcharge from March 1 on customers to offset a carbon tax proposed by the European Union. However, the new EU fee is not expected to be introduced for another year.

According to India's Economic Times, there are concerns that the airline's plan may be adopted by the nation's air freight industry. Royal Jordanian currently operates in India mainly through Mumbai and Delhi.

However, such fears have been dismissed by Kapil Kaul, CEO South Asia of the Centre for Asia Pacific Aviation, saying, "Royal Jordanian does not have a significant presence in India. These are some isolated cases. And the fight is no longer an airline-versus-EU fight. It is countries versus the EU."

The move also comes in the wake of protests from governments in India, the US, China and Brazil over Europe's "insistence on making airlines flying to most of the continent pay for the carbon they emit," the report said.

"We have sent a communication saying that EU tax applies only from next year and why you are jumping into it now. They have not replied yet," said Asad Cassim, secretary general of the Air Cargo Agents Association of India. "According to one of the scenarios, others might follow suit. This will add to our cargo charges in an already slowing operating environment."

According to the report, the airline is proposing to implement a carbon surcharge of INR2.40 per kg from March 1, which would be a first in India.

Under the EU plan, airlines would be offered allowances to cover 85 per cent of their emissions. The calculations of carbon emissions are to start from January 2012. But the actual tax is to be implemented in 2013. Airlines that do not comply could face fines of US$130 for each tonne of carbon dioxide emitted for which they haven't surrendered the allowances. Persistent offenders could also face bans, the report added.

Source Shipping Gazette - Daily Shipping News

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