Monday, August 05, 2013

Uh oh: Planet-healer Richard Branson's Virgin Australia is "especially hurt" by the carbon dioxide hoax tax that he promoted

Carbon tax hit Virgin: Hockey | Business Spectator
Shadow treasurer Joe Hockey used Virgin Australia Holdings Ltd's expected full-year loss as an example of why the coalition plans to repeal the carbon tax if it wins government.
The airline forecast a loss of between $95 million and $110 million in fiscal 2013 and told the stock exchange the carbon tax was hurting its business.
Mr Hockey said the "cyclical downside of the carbon tax is coming into play".
"If you do not have profitable businesses, then a tax like the carbon tax - eventually those cost jobs."
Virgin Aust expects loss of up to $110m | The Courier-Mail
Virgin Australia had been unable to pass on the cost through higher ticket prices because the local economy was weak and competition was tough.
"It (the cost of the carbon tax) is simply not recoverable," Virgin Australia chief executive John Borghetti told reporters.
"For anybody to suggest that this is recoverable in the current economic climate is just not a realist."
He said the carbon tax especially hurt Virgin Australia because it was a domestic tax and 80 per cent of Virgin Australia's revenue was domestic.
May 2013: Branson open to total sale of Virgin Australia - Channel NewsAsia
Branson, who founded Virgin Australia as a rival to Qantas in 2000, sold a 10 per cent share to Singapore Airlines last month, leaving him with 13 per cent.

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