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Aviation fuel taxes - Thommo
If the mods deem this too non-car related and they remove it I will not object but I think it has a bearing on all taxes including those on cars and the Law of Unintended Consequences that always operates when governments try to rig markets.

No one likes paying any taxes so give any government an opportunity to charge you a tax or even tax on tax as we pay VAT on Excise Duty on petrol/diesel and tell you its for your own good and they will take it.

The current big target for the tree huggers is aviation fuel and the fact that it isn't taxed and that somehow this is wrong and it should be for our own good of course.

What they never explain is how difficult this would be and what the likely consequences would be.

The UK has the largest set of double taxation agreements in the world. All negotiated over many years. Every single one exempts our airlines from being taxed on fuel in other countries in return for us not taxing their airlines on fuel in ours. Thus inside the fence at Heathrow you have effectively a fuel tax free zone.

Now we can impose taxes on our home airlines if we wish but we have just bankrupted BA, Easy Jet and Ryan Air as we have just made them uncompetitive on price as they are being taxed and others aren't.

We would need to re-negotiate all our double taxation agreements to tax airlines of other nationalities and we are unlike to get this for free, they will want to tax us in return.

So BA flies from UK to say US. It refills in either location and it is taxed.

America Airlines if it flies to UK and refills is taxed as is Air France from Paris if it refuels in UK.

BA will be taxed wherever it refuels anywhere in the world but what is to stop American Airlines flying to Paris refuel (tax free under the US/France double taxation agreement) and then stopping off at Heathrow on its way back to US? Or more likely just flying to Paris and back to US.

Effectively the UK becomes a place you fly from to somewhere nearby to pick up your long haul flight. Understand?

Think this wouldn't happen? Think again. Whilst Terminal 5 was 20 years in the planning Charles de Gaulle is expanding exponentially. If we don't want the business others will take it.

To implement taxes on aviation fuel and avoid the Law of Unintended Consequence you need GLOBAL co-operation and its just not here.


Aviation fuel taxes - commerdriver
We already see this "fuel elsewhere" approach in foreign lorries , have you seen the size of the fuel tanks? Big enough in many cases to fill up in France - drive to Scotland and bac (or wherever) and fill up in France on the way back.
Aviation fuel taxes - Thommo
Absolutely the point Commer. The taxing to death of British lorries does not mean less lorries on the road just less British lorries on the road.
Aviation fuel taxes - Armitage Shanks {p}
"We have just bankrupted BA, Easy Jet and Ryan Air". When did this happen, I must have missed it?! SFAIK they are all still in business and doing very well!
Aviation fuel taxes - Baskerville
This tax break is really a subsidy. Subsidies distort markets and allow uncompetitive, inefficient companies to survive. If the airlines need help to tide them through the bad times, or to provide a necessary, but uneconomic public service, then fine. Let them come and make a case for it just as the railways and the bus operators do. The way it is now they just get the tax break regardless. If they can't or don't want to make a case, why should we pay?
Aviation fuel taxes - Vin {P}
"This tax break is really a subsidy"

Wow. That shows how thinking has been perverted, and there's a clear motoring link here. We've been brainwashed into thinking that taxation on fuel is the norm and that any reduction in that must be a "tax break". No doubt there'll be a "global warming" excuse, but high tax on fuel was the norm long before this became a serious viewpoint.

A perfectly acceptable way of rephrasing this situation would be to say that airlines are free of the market-distorting taxation of motor fuel. Just as valid, but our communal brainwashing makes it sound odd.

I say again. Wow.

V
Aviation fuel taxes - NowWheels
"This tax break is really a subsidy"
Wow. That shows how thinking has been perverted


Most mode of transport rely on taxed fuel, but only one gets an exemption. That's not perverted thinking: if aviation isn't taxed, govts get the revenue from taxed activities elsewhere. It adds up to the same economic effect as taxing all transport equally, but shovelling sackloads of taxpayer's cash at aviation.
Aviation fuel taxes - Baskerville
I fail to see why I should pay more tax on the diesel I buy so that the airlines don't have to pay tax on their kerosene. I also fail to see how you can bring yourself to justify it.
Aviation fuel taxes - Vin {P}
I'm not justifying anything. I'm just pointing out that there are two ways of looking at this. Nothing more.

V
Aviation fuel taxes - NowWheels
To implement taxes on aviation fuel and avoid the Law of
Unintended Consequence you need GLOBAL co-operation and its just not here.


It could, however, be done on a European level, where the issue is already getting a lot of attention (see the link I posted earlier: www.honestjohn.co.uk/redirect.php?http://news.bbc....m )

I'm pretty sure that most flights taking off in the UK land inside the EU, and transatlantic flights can't carry enough fuel for a return trip, so I think it might well be possible for the EU to act unilaterally. A global agreement would be better, but an EU-only tax on aviation fuel might well be a viable step on the way.
Aviation fuel taxes - Zippy123
They would just change their routing. For example from USA to EU then just enough fuel to Africa or Russia then back to USA from their.
Aviation fuel taxes - Baskerville
>just enough fuel to Africa or Russia then back to USA from their.

But price is not the only factor in choosing which carrier to fly with. Those that put in too many stops or increase the flying time will be disadvantaged. Supply and demand will make the inconvenient and subsidised routes cheaper and the direct routes more expensive. Just as they do now. The EU is too big a trading bloc for airlines to pull out.
Aviation fuel taxes - Thommo
Nowwheels,

Whilst an EU wide solution is a possibility albeit a distant one. Your assertion about miles is wrong.

The distance record for a Boeing 777 is as far as I am aware 11,664 nautical miles (in 1997). Now these records are a bit fake because they fly with crew only (but it has to be a standard plane) using whatever headwind advantages they can get but the bottom line is that most large planes can fly half way round the world on one fuel load if necessary plus they are getting more fuel efficient with each new generation of planes.

As such all the EU airlines would find themselves priced out of many world markets. Do you think the French will agree to this?
Aviation fuel taxes - robcars
One of the real reasons why the european community is supposed to be good is that it supposed to operate fairly to all member countries.

How come we alwasy seem to lose out to France?

Impose the tax I say, I need a car for work and pay heavily for the "privilige". let those that fly to do work pay for the same.

End result of more tax would be less flights -= good for the world!
Aviation fuel taxes - Cliff Pope
Why don't they refuel in the air ?

Aviation fuel taxes - Temp name4
because there are no petrol stations up there.



seriously one of the hidden costs for us all is that in the airfreight community where i work, every single kilo of arifreight is surcharged for fuel at 0.40 pence per kilo , imagine the damage that is doing to british industry
Aviation fuel taxes - Cliff Pope
because there are no petrol stations up there.
seriously one ---


I was being serious. Military aircraft can refuel in the air from tanker aircraft - why not civilian? Then they could buy fuel from the nearest zero-rated supply.
Aviation fuel taxes - Baskerville
I was being serious. Military aircraft can refuel in the air
from tanker aircraft - why not civilian? Then they could buy
fuel from the nearest zero-rated supply.


Sounds nice and safe. I think one Tornado and a couple of pilots (who have ejector seats anyway) is somewhat more expendable than 300 drunken tourists with sunburn. Oh, wait a minute...
Aviation fuel taxes - Nsar
The fastest rising source of CO2 is aviation - that's calculated on emissions from the flight alone. I have read somewhere that the all the car journeys to/from the airport outweigh the aviation fuel emissions so it's an even bigger problem.

The EC can get its act together to create transnational taxation agreements to tackle carousel VAT fraud so it is perfectly possible to act on aviation fuel when you are dealing with easily identifiable companies and flights.

I am not a "tree hugger" and the use of the phrase suggests that the original poster doesn't grasp the magnitude of the problem posed by global warming.

On a related and specifically motoring issue - round of applause please for Essex Council for its decision to switch off street lights to save energy and emissions

news.bbc.co.uk/1/hi/england/essex/5179610.stm
Aviation fuel taxes - Thommo
Oh I fully grasp the fact that if I create a computer model with global warming as an assumption and run the model and prove that global warming exists its a big problem. Wikipedia has a very interesting and surprisingly balanced entry on this issue.

I further grasp that the only major western nation to actually reduce its omissions since the Kyoto treat was signed is the one that did not sign it, all the ones that signed it have increased their emissions and most have no intentions of implementing it in any meaningful manner. Plus the two emerging economic super powers who are increasing their energy use exponentially are also not signatories.

I am also fully aware that probably only the UK is stupid enough to cripple its own economy to solve a problem that may or may not exist. However I'm emigrating to Thailand soon so I'm not that concerned.

Oh and if you think carousel VAT fraud has been stopped perhaps this might amuse you.

news.bbc.co.uk/2/hi/uk_news/5178788.stm

Sorry mods this is turning political I'll stop here.
Aviation fuel taxes - Baskerville
Of course one of the benefits of reduced emissions is reduced fuel costs. Businesses (and countries) that reduce costs are more competitive. Unfortunately the airlines (and motorists too) have built their business model on the assumption of cheap fuel. That will have to change and the first to change will likely do quite well.

The environment is one thing but of course it makes no economic sense at all to waste fuel, And although historically wastefulness has been a symbol of power and virility, as it is now for China and India, we are no longer in that blessed position. This book (published in 1899) is worth reading on this topic. It's where the phrase "conspicuous consumption" comes from:

books.mirror.org/gb.veblen.html

Incidentally, as any 1st year undergraduate knows, you can plagiarize Wikipedia, but don't ever cite it.
Aviation fuel taxes - Temp name4
you cant tax it strictly speaking its an export so how can you

thats like saying every plane lands here has to pay duty on the tyres the pilots cap, the rear door,
you couldnt do it customs would collapse by the end of the first day

i am surprised though that nobody has baulked at the extra cost on air cargo for every 1000 kg it costs the britsh exporter another £400.00
Aviation fuel taxes - greenhey
I dont think the no tax on aviation fuel is the result of bilateral agreements.

I think it is covered by the international treaty re air travel ( IATA?) which forbids tax in any country .This treaty has been in place for something like 40 years.

I'm pretty sure it's untaxed everywhere as a result and you would have to reset the treaty to change that.
Aviation fuel taxes - NowWheels
I think it is covered by the international treaty re air travel ( IATA?) which forbids tax in any
country. This treaty has been in place for something like 40 years.


The Convention on International Civil Aviation, otherwise known as the Chicago Convention. However, the convention has been revised seven times since it was signed in 1944, so it is by no means set in stone.
Aviation fuel taxes - Stuartli
Airlines have to pay landing fees at each airport, so landing for "cheap" fuel would presumably not be economic.

The emissions from one Jumbo jet flight from the UK to Australia equals the emissions from all Formula 1 qualification and racing sessions over two seasons (source Top Gear magazine).
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What\'s for you won\'t pass you by
Aviation fuel taxes - Manatee
>>The emissions from one Jumbo jet flight from the UK to Australia equals the emissions from all Formula 1 qualification and racing sessions over two seasons (source Top Gear magazine).

er... what about all the plane trips the teams make to the venues - including Australia? Still a flea bite I suppose.

I find it interesting that we are just about at Peak Oil, yet airports are forecasting big expansions over the next 20 years. It just doesn't add up - falling oil production + exponential growth in air travel = what? Will liquid petroleum products be 'rationed' for other uses to conserve fuel for air travel? You can't run aeroplanes on batteries. What scale of bio-fuel production would be needed and how does turning land over to fuel production square with feeding growing populations?

It seems fairly clear that there will be a relatively short period in history when the technology and resources coincided and enabled the ludricous amount of travel we now routinely indulge in. We should be working out where we would like to end up, and how we are going to get there, not just allowing 'the market' to take us where it will. If we leave it to the markets, does it become a question of which happens first - ecological disaster or running out of fossil fuel?

The market is very bad at managing resources - as long as oil is cheap to extract, the market says it is worth a few pennies a bucketful, notwithstanding it is a finite and arguably priceless resource. And we actually have laws to make sure that we set up competitive markets to achieve this. Madness?

I can't see how we can avoid the curtailment of mass air travel as oil production declines from now on - what have I missed (it's too late to think)?
Aviation fuel taxes - Stuartli
>>as oil production declines from now on>>

Oil reserves are actually higher than governments would have you believe - the problem is that it will get harder and harder for the oil companies to access them because of location, terrain etc.
- - - - - - - - - - - - - - - - - - - - -
What\'s for you won\'t pass you by
Aviation fuel taxes - NowWheels
Oil reserves are actually higher than governments would have you believe
- the problem is that it will get harder and harder
for the oil companies to access them because of location, terrain etc.


From what I've read, it's not just a matter of the newer reserves being slower or more expensive to get at, but also that that many of them may offer rather slow extraction rates. So there may be lots of reserves, but if the wells can't be pumped fast enough to meet demand, there'll be shortfalls.
Aviation fuel taxes - Manatee
>>From what I've read, it's not just a matter of the newer reserves being slower or more expensive to get at, but also that that many of them may offer rather slow extraction rates.

Exactly so - 'Peak Oil' is the jargon for the highest production rate, which some people think we have already reached or passed. If this is indeed the case, oil consumption will have to reduce, sooner rather than later.
Aviation fuel taxes - Vin {P}
"what have I missed"?

What everyone misses. Solar power (all costs including capital) is halving in cost every ten years. By 2030 it will be cheaper than oil and gas at their 2000 prices (and they certainly seem higher now). At that point, only a madman would heat or generate electricity any other way (where electricity can be used, that is). At the same rate, by about 2050, it will be cheap enough to overcome the inefficiencies in hydrogen generation from water, at which point hydrogen will be cheaper than oil or natural gas. Then we'll end up with a true hydrogen economy.

Nothig else is going to do it. Economic pressures will always win. While oil's cheap, people will use it. When electricity becomes cheaper, people will use it (where it CAN be used). When hydrogen becomes cheaper, it'll become the fuel of choice.

So, I'm sorry to say, given the bias against markets on this forum, that the markets WILL win.

V
Aviation fuel taxes - Manatee
For my children's sake, I hope you're right Vin. There's going to be an awful lot of demand for energy - it has only taken 300m Northern Europeans, a similar number of North Americans and a few other developed countries here and there to get us to where we are. When similar levels of demand are reached in India and China with their large populations, we will definitely need a few new ideas. And there will be a few problems to solve as well - as with hydro, doesn't solar power have to be used pretty much as it's generated?
Aviation fuel taxes - Vin {P}
"as with hydro, doesn't solar power have to be used pretty much as it's generated?"

Yes, at least until it becomes efficient enough to be used for hydrogen generation. Until then, you'll end up with a new industry for places like Mali, Algeria, Saudi (again!) etc. A belt of solar collectors might arise. The sun's always above the horizon somewhere. At current efficiencies, panels totalling 300 miles x 300 miles could provide all the power used by humans, they just aren't economical at the moment. Sounds huge, but take a look at the scale of the Sahara on a map - the above area is under 3% of the Sahara's area.

And once it becomes efficient, you'll end up with solar tiles that pay back quickly enough to be worthwhile. Think how much less CO2 the UK would produce if no electricity generation was required even just during daylight hours (and on a micro level you can store some electricity, btw).

As I say, once it becomes economically sane, you won't be able to stop it.

V
Aviation fuel taxes - NowWheels
localised generation (such as solar power) has a further advantage in that it removes the power losses involved in punping leccy around through the national grid. I dunno what the power losses would be with pumnping leccy frim the Sahara, but if Wikpedia is right to cite am 11% loss betwen the north and south of England (se en.wikipedia.org/wiki/National_Grid_%28UK%29 ), then losses from the Sahara could be much higher.

That's also one potential problem with new oil reserves: the energy inputs required to extract and transport the oil may be a lot higher than at present,
Aviation fuel taxes - Thommo
There are sufficient oil reserves for over 100 years+ even at currently usage forecast which includes expotential growth by China and India. The trouble is these reserves are in places that are either difficult politically or geographically or in most cases both. For example all the ex-USSR states with oil reserves are building long long pipelines but any pipeline is vulnerable at any point along its length.

I believe the way forward is technological change.

100 years ago they were worried that the increase in the use of horses in London would lead to horse dung at head high levels in the street.

My personal guess would be some step change in nuclear energy allied to a step change in battery technology which will mean electric cars within 20 years.
Aviation fuel taxes - NowWheels
There are sufficient oil reserves for over 100 years+ even at
currently usage forecast which includes expotential growth by China and India.


Depends who you listen to! Some experts allege a widespread problem of reserves being overstated for various reasons
The trouble is these reserves are in places that are
either difficult politically or geographically or in most cases both.
For example all the ex-USSR states with oil reserves are building
long long pipelines but any pipeline is vulnerable at any point along its length.


It's not just the pipelines, it's also the rates at which oil can be extracted. It's all very well having 100 years worth of reserves, but so hepful if they can't be extracted in that 100 years
Aviation fuel taxes - NowWheels
i mean "but NOT so hepful if they can't be extracted in that 100 years"
Aviation fuel taxes - Thommo
I agree that overstatement/understatement of oil reserves is a political issues but the bottom line is there is enough oil in Saudi Arabia alone to keep the world going for 30 years+.

I still have the Economist front page (framed in my toilet) that predicted oil prices would fall to US$5 a barrel and stay there forever and would only be produced by Saudi until their reserves ran out because marginal cost of production there is under US$1.

I remember not so long ago when crude was under US$12 and everyone including me was getting fired.

I have never heard this one about extraction difficulties before. If anything the opposite, extraction technology is improving all the time. Abandoned North Sea oil fields have been re-opened due to these technique improvements. The thing to be at the moment is a reservoir engineer. This is a specific discipline who'se sole job is to maximise reserve recovery rates. With crude at US$78 many fields which would have been shut down as uneconomic are still being pumped but it gets harder and harder to extract the dregs which is where the reservoir engineers skills come in and why there is a shortage of them due to extra demand for their skills. I have heard of rates of US$1,000+ a day being offered. Maybe this is where this comes from.

Aviation fuel taxes - NowWheels
I have never heard this one about extraction difficulties before.


Where I heard it was in connection with oil that was mixed up shale or sand (can'r remember the techical term for that sort of deposit). The author said were some large oil fields in that condition which were already being counted as reserves, although extraction looked uneconomic. Sorry, can't recall the source.
If anything the opposite, extraction technology is improving all the time.
Abandoned North Sea oil fields have been re-opened due to
these technique improvements.


I thought that those improvements, and anticipated future improvements, had already been factored into the assessments of usable rerserves?
Aviation fuel taxes - Thommo
'oil that was mixed up shale or sand'

Its called heavy oil and its filthy stuff. There is actually more oil in Canada than in Saudi Arabia but its mostly heavy oil.

Basically extracting it is very difficult and expensive and you end up with a small amount of low quality oil and a large amount of radioactive muck which is very expensive to process and dispose of.

Its not financially viable under about US$25 a barrel and traditionally the big boys wouldn't touch it with a barge pole. At US$78 its a gold mine!

The leader in this technology is a Canadian (naturally) company called Canadian Natural Resources Limited.

'anticipated future improvements'?

10 years ago could you have anticipated the price and power of the computer you are using today? Reservoir engineering is driven by analysing data from the reservoir using highly sophisticated equipment. As the technology improves so does the recovery rate.
Aviation fuel taxes - NowWheels
'anticipated future improvements'?
10 years ago could you have anticipated the price and power
of the computer you are using today?


Yes to the second bit! Moore's law precited that remarkably accurately.
Aviation fuel taxes - buzbee
OK you chemists. If the solution to our future energy problems lies in extracting (splitting) hydrogen from water (H2O), what is the ratio of the energy you get from burning a unit weight of hydrogen (choose your own unit) to the energy that is needed to split that weight of hydrogen from water? Note: If the answer is not greater than unity the process is lossy.
Aviation fuel taxes - Vin {P}
One site - tinyurl.com/nmhpe - says (no details on volumes):

it requires 249.688 Btu of energy (from electricity) to break water by electrocal fission into the gases hydrogen and oxygen. 302.375 Btu of energy (heat or electricity) will be released when the gases, hydrogen and oxygen, combine.

V
Aviation fuel taxes - Vin {P}
Just reread that and it must be twaddle. Presumably the figures should be reversed.

V
Aviation fuel taxes - buzbee
And when the oxygen and hydrogen recombine they produce water. Hmmm. Not an alchemist in there somewhere, is there?.
Aviation fuel taxes - Dalglish
thommo said
... The current big target for the tree huggers is aviation fuel ...

>>

vin said
... twaddle. Presumably the figures should be reversed. ..

>>

this thread is becoming more like the one (nearly two years ago) where vin said:

www.honestjohn.co.uk/forum/post/index.htm?t=24409&...f
Chinese Fuel Consumption - Vin {P} Thu 5 Aug 04 04:15
" Let's assume oil is selling for $20 per barrel, and that there are X years of reserves. ....
...... .... Well, at current consumption, estimates go as high as 5,000 years of reserves.
Perhaps we should flag this thread for a revisit in five years.

and vin also said:
www.honestjohn.co.uk/forum/post/index.htm?t=24409&...e
": ...New Orleans will have joined their streets together .. "

and i said
Chinese Fuel Consumption - Dalglish Thu 5 Aug 04 09:37
" .... we are all doomed, dooomed, doooomed - not because of shortage of oil, but because of global warming having far greater impact and at an earlier date than forecast. yes, let us revisit this thread in five years. ..."

the price of crude oil has quadrupled in those two years, and the streets of neworleans did join together last year, and there is a drought in south-east england, ...

but i presume vin stands by his view that oil reserves will last 5,000 years.

Aviation fuel taxes - Vin {P}
Dalglish (amongst other confusing stuff) said: "but i presume vin stands by his view that oil reserves will last 5,000 years."

In what way will anything related to fuel prices affect oil reserves?

By all means quote me out of context - e.g. the quote about New Orleans was unrelated in any way whatsoever to do with flooding - but at least get your argument straight.

V

Aviation fuel taxes - Vin {P}
Forgive me - error in my editing:

In what way will anything related to fuel prices affect oil reserves? Apart, of course, that higher prices will lead people to use less, so reserves expressed in years of usage will increase.

V
Aviation fuel taxes - Vin {P}
Ah, I've just reread the entire thread Dalglish referred to.

He didn't make a single additional constructive comment after I asked him to address the main issue. He then (and he clearly is obsessed with this) quoted my reference to Mark Twain again as if it had some kind of relevance to the floods in New Orleans.

Clearly, Dalglish, this is your style of "debate" and I'm sorry to tell you I'm not going to get taken in by it. Make your unscientific axe-grinding hysterical doom mongering and your out of context quotations on your own.

Troll away, my dear thing, troll away.

V
Aviation fuel taxes - Gromit {P}
...what is the ratio of the energy you get from burning a unit
weight of hydrogen (choose your own unit) to the energy
that is needed to split that weight of hydrogen from water?


I don't have the figures to hand, but AFAIK, more energy is consumed in extracting hydrogen than burning it. But the biggest barrier to using it in aircraft (if that's what we have in mind) is the weight of the insulated tank needed to carry the hydrogen - which makes it impractical for aircraft.

As for taxing aviation fuel, there's a practical reason not to - unless all markets had the same tax rules, carriers would do what trucks do and refuel in tax-free countries. As a typical short-haul aircraft (737 or A320) only fuels on every second or third flight it makes, that could add up to a lot of lost revenue in those countries with aviation fuel tax.

(Of course the real fear is that the powers that be not only work out a method of taxing aviation fuel across the board, but that they go one step further and apply the same method to motor fuels - using the highest rate in force across the EU, no doubt!)
Aviation fuel taxes - BazzaBear {P}
- as with hydro, doesn't solar power have to be used
pretty much as it's generated?

Here's one solution to this type of problem. Think of it as a VERY large battery:
www.electricmountain.co.uk/dinorwig.htm