Ryanair lodge EU complaint

Ryanair has lodged a number of complaints with the European Commission regarding the Irish Government's €10 passenger travel tax (€2 on shorter routes) on the basis that it unfairly discriminates between international and domestic traffic.

In total, three complaints have been made :

1. An Internal Market complaint on the basis that the move unfairly attempts to protect domestic traffic and airlines that fly domestic routes, thereby breaching the EU Treaty on freedom to supply service.

2. That the €2 tax on shorter (domestic) routes effectively amounts to illegal state aid to Aer Arann.

3. A state aid complaint that since transit / transfer passengers and cargo are exempt from the tax, the measure amounts to illegal state aid to Aer Lingus and the Dublin Airport Authority (DAA).

Speaking about the complaints, Ryanair's Stephen McNamara said “Ryanair believes the tax should be scrapped as it has resulted in the collapse of Irish tourism and unfairly protects domestic travel, but if this misguided Government is going to stick by its failed policy of taxing tourists it should at least ensure that it is applied fairly”.

Transport Minister Noel Dempsey insists that a fall in traffic at Irish airports is not as a result of the passenger travel tax which collected €21m in revenue during the first two months since implementation. €9.6m was collected in May and €11.5m in June. Minister Dempsey, responding to a written question in Dail Eireann (Irish Parliament) said that the decline in passenger numbers in Irish airports was 'broadly in line' with that of our international counterparts, including those where no tax was in operation.

Although it is probably too early to forecast at this stage, the travel tax revenue would need to increase significantly in order to meet the Government's predicted target of €150m per annum if June's mid season figure is anything to go by.