Airlines may face massive bill over travel tax

Aer Lingus and Ryanair will find out this week if they face a multimillion-euro tax bill over the air travel tax which was scrapped by the Government in 2013.

The European Court of Justice will issue its ruling on Thursday on separate but similar cases brought by the airlines against the European Commission over its finding in 2012 that a lower tax rate for short-haul flights was unfair.

If the rival carriers are unsuccessful, they will face a large tax demand from the State, which they are unlikely to be able to recoup from their passengers.