THE GOVERNMENT’s €10 travel tax will lead to the loss of 3,000 jobs and will cost the State €482 million in lost revenue, according to a report commissioned by Aer Lingus, Cityjet and Ryanair.

The three airlines, which together account for 83 per cent of all air travel in and out of Ireland, commissioned Dutch aviation consultants Amsterdam Aviation Economics (AAE) to compile the report on the economic impact of the controversial tax.

The Government introduced the excise duty on air travel in April’s emergency budget. The tax – for which the airlines are liable – imposes a charge of €10 per passenger on all flights from Ireland to airports located more than 300km (186 miles) from Dublin airport. Passengers on domestic flights are charged €2 each way.

According to the report, the tax will generate €116 million in revenue for the Government in the first year of implementation. Earlier this month, Minister for Finance Brian Lenihan said the Government had raised €67 million through the tax between April and September this year, the first six months of its operation.

AAE’s Jan Veldhuis said the decline in revenues generated as a result of the travel tax was of “far greater magnitude” than the tax likely to be collected. “Airlines have had to absorb the tax in lower fares to maintain volumes and, as this will be unsustainable, capacity will further reduce as airlines continue to move aircraft to lower-cost markets where no travel tax applies,” he said.

In a joint statement issued yesterday, the chief executives of Aer Lingus, Cityjet and Ryanair called for the abolition of the tax. “This tax is completely counter-productive and [is] costing the country more than it can ever hope to generate. It does not make sense to sacrifice huge revenues and lose jobs and passengers by imposing a tax which will generate just €116 million.”