Aer Lingus suing State for €61m

Aer Lingus is suing the State for more than €61m over an “undifferentiated” travel tax.

The case came before Mr Justice Peter Kelly in the Commercial Court yesterday but he refused the airline’s application to fast-track it due to delay in bringing the proceedings in circumstances where the tax was introduced by the 2008 Finance Act and deemed in breach of EU regulations two years later.

Aer Lingus’ then chief executive had written to the finance minister in Oct 2008 expressing the airline’s “firm view” the then proposed tax was contrary to EU law, the court heard.