LONDON (Bloomberg) — Airlines operating in the UK escaped an immediate switch in the way the government taxes passengers, with Chancellor of the Exchequer George Osborne saying he will consult the industry on any major changes.

Osborne yesterday reiterated his desire to move toward a levy on each plane that flies instead of on passengers. The Conservative-led government says that would encourage airlines to fill aircraft to capacity and cut greenhouse-gas emissions.

British Airways Plc and other large carriers have expressed concerns about a per-plane levy, which would benefit budget carriers including Ryanair Holdings Plc and easyJet Plc that try to pack their aircraft. The duty currently raises about £2.3 billion ($3.4 billion) for the Treasury.

"They're taking time to think about it," said Mark Schofield, an expert on green taxes at PriceWaterhouseCoopers in London. "There's a lot of arguments to listen to. If you penalise international carriers, they'll fly from another hub. You don't reduce emissions that way. You just shift them to another city."

In his budget statement today to Parliament, Osborne said he would "explore changes to the aviation tax system, including switching from a per-passenger to a per-plane duty, and consult on major changes." PWC said a survey it conducted in 2007 showed only nine percent of executives believe air passenger duty is an effective form of taxation to clean up the environment.

Osborne, without providing further detail, also reiterated plans for a Green Investment Bank that would help fund environmental projects and for legislation to help individuals make efficiency improvements to their homes.