Airlines hit out at new passenger taxes

Airlines roundly condemned new air travel passenger taxes announced in today’s Budget.

Finance minister Brian Lenihan said passengers will have to pay a €10 passenger tax on long haul flights and €2 on shorter journeys.

However two major airlines said the tax will result in a drop in bookings and put further pressure on the already struggling industry.

Aer Lingus corporate affairs director Enda Corneille said the tax was a further blow to airlines and Irish tourism.

“This new tax will further damage already falling consumer demand for air travel and will put Ireland at a significant disadvantage for in-bound tourism on which thousands depend for their livelihood,” he said.

“It is also clear that this tax is discriminatory, as it will not be deployed on an equitable basis across all Irish carriers with all domestic travel and some shorter UK flights only being liable for the lower two euro tax level.

Ryanair chairman Michael O’Leary said the tax will result in a massive drop in visitors to the Shannon region.

“Given that average fares at Shannon for five months of the year are less than €10 per passenger, this tax will cause visitor numbers at Shannon to collapse,” he said.

Mr O’Leary called for a similar level of tax for ferry passengers.

bmi Ireland sales manager Dave Walsh said the tax was more bad news as the industry struggles to remain competitive.

“This is a punitive tax that will hit leisure and business travellers alike and places and unfair burden on airlines and air passengers at what is already a difficult time for a sector attempting to maintain low fares against a backdrop of increasing costs,” he said.