Ryanair makes complaint to commission about travel tax
Irish airline Ryanair has complained to the European Commission about the Irish government's €10 tax on air travel. By Ciaran Farrell - 30/07/09
The airline is believed to announce this morning that it is pulling more routes from Dublin and Shannon airports, with more job losses likely as a result. T is believed the airline will lay the blame on the travel tax.
It has urged the Government several times to dispense with the tax, saying it has led to "the collapse of Irish tourism".
Yesterday it was also revealed that Ryanair paid €5.4 million in compensation to executives and directors in 2009, rising from €5.2m a year earlier.
Its CEO Michael O’Leary received €1.07m in the 12 months to March 31, 2009, in salary, bonus and pension contributions, dropping from €1.2m a year earlier.
Next year Mr O’Leary’s pay will be frozen and his bonus reduced to €241,000.
The airline, which warned this week that full-year profits would come in lower than expectations, said its complaint to the EC was based on the tax being discriminatory and that it represented illegal state aid as transfer and transit passengers and cargo traffic were exempted from it, and Aer Arann paid less on certain routes.
Spokesman Stephen McNamara said: "Ryanair believes the tax should be scrapped as it has resulted in the collapse of Irish tourism and unfairly protects domestic travel, but if this misguided government is going to stick by its failed policy of taxing tourist it should at least ensure that it is applied fairly."
The travel tax, according to figures released earlier this week, is set to bring in the government up to €95m this year
Ryanair, however, has predicted that traffic at the principle Irish airports will drop this winter by 20%.
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