Wednesday, November 14, 2007

Price differentiated carbon offsets

Airlines are beginning to catch onto the wave of selling carbon offsets to passengers. However, Virgin Atlantic has calculated it down to the exact kilogram...and even categorized it according to cabin class. Not only can passengers purchase carbon offsets while in-flight, but premium class passengers will pay more. Why? Well, their IFE units are heavier and their seats are heavier so these passengers are contributing more to the aircraft's fuel burn than economy passengers. This is bringing the unbundling concept to the carbon offset table.

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