Ireland upholds €3 air travel tax

Ryanair 737-800. Photo: Courtesy, Boeing.

The Irish government decided to retain the €3 ($4.30) air travel tax after it failed to reach agreement with airlines to reinstate canceled routes and restore dropped capacity.

The tax on passengers leaving Irish airports was reduced from €10 to €3 for long-haul flights in last December's budget and the government, as part of a so-called jobs initiative to stimulate its economy and tourism, had suggested it would suspend the tax altogether if airlines made assurances to boost traffic to Irish airports (ATW Daily News, June 17).

"I could not agree to foregoing significant revenues in taxes without a solid commitment from the airlines on the restoration of key inbound routes and capacity," said Minister for Transport, Tourism and Sport Leo Varadkar, noting that the new routes offered by the airlines "were predominantly to Mediterranean hotspots, which would actually have taken many more people out of the country than they would have brought in."

Ryanair dismissed the claims and criticized the transport ministry for under-representing the commitments the carrier had made to increase traffic. It said it had committed to bringing in 5 million additional passengers per year over a five-year period.

Varadkar stressed that he remains open to discussions with the airlines and the government will review the travel tax again in spring 2012. In the meantime, €8.5 million of the revenue taken in from the travel tax will be used to support inbound tourism in cooperation with airlines, ferry companies, tour operators and airports. But he said, "Airlines, ferry companies, tour operators and airports participating in the program will be expected to make a contribution to the cost, thus leveraging a final investment in excess of the government कोन्त्रिबुतिओन
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