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Airlines must pay €8 per passenger

Ryanair, Aer Lingus, and Aer Arann must pay the State €8 for each passenger they carried on short flights over a two-year period, the EU has ruled.

It could cost the airlines millions of euro but the ruling was welcomed by Ryanair, while Aer Lingus pointed out the tax raised revenue for the State, not the airline.

The Government escaped being hauled before the courts last year when it abolished the two-tier travel tax that levied €2 on each passenger flying less than 300km, and €10 from the rest.

It was replaced with a single tax of €3 following complaints from Brussels, to come into line with EU rules that ban discrimination between national and pan-EU flights.

But the commission said that since the airlines operating short-haul flights got away with paying less than those on longer flights, they must pay the difference to the State.

Because smaller airports in Ireland were exempt from the tax, the decision affects flights mainly from Dublin to Bristol and some north of England and Scottish airports.

The airlines would not say how many passengers were involved or how much they would have to hand over to the State.

Aer Lingus stated its opposition to the tax but Ryanair’s Stephen McNamara said: “Ryanair notes and welcomes today’s EU ruling on the Irish travel tax.”

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