Climate Adaptation
Airline Bailouts Point to Greener Travel—and Higher Fares
- Governments take steps to cut back on short-haul flights
- Low-cost carriers see green agenda distorting competition
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Europe’s $36 billion of airline bailouts could herald a shift to lower-emission travel as countries impose environmental strings on aid. Those requirements may also mean customers have less choice and pay more.
Austria is taking the most radical steps in agreeing to fund the local arm of Deutsche Lufthansa AG. The government will impose a minimum 40-euro ($45) ticket price to discourage non-vital journeys while hiking fees on flights under 350 kilometers (217 miles) to 30 euros. And Austrian Airlines services to locations less than three hours from Vienna will be replaced by train journeys.