Airlines challenge travel tax ruling in EU court

Aer Lingus and Ryanair will begin separate legal actions in the European Court of Justice this week over the controversial air travel tax which was discontinued by the Government in last year’s budget.

The rival airlines are both taking a case against the European Commission over its ruling in 2012 that a lower tax rate for short-haul flights was unfair and that Ireland should seek to recover the €8 difference per passenger from Ryanair, Aer Lingus, and Aer Arann.

At stake for the airlines is a multimillion-euro tax bill which they claim can no longer be passed on to their customers.