Ryanair: Way clear to sue Government over tax

Ryanair and Aer Lingus are facing an estimated €16m tax bill after the European Court of Justice (ECJ) ruled that Ireland must recoup the proceeds of an illegal tax from the airlines.

The EU’s top court ruled the difference between the lower and normal rates of air travel tax constituted unlawful state aid.

Ryanair said yesterday it had been expecting the ruling and it cleared the way for the airline to take a High Court action against the Government to recover €88m in damages which it claims it suffered as a result of being forced to pay the illegal tax.