AIR TAX REACTION:THERE WAS widespread criticism from airlines and tourism groups yesterday of the Government's decision to impose a €10 airport departure tax from March 30th.
Passengers travelling distances of more than 300km will be hit with a fee of €10. This includes flights to London and international destinations outside the UK.
Passengers on domestic flights will pay €2 each way for their trips. Airport exit taxes applied in the past but were abolished by Charlie McCreevy during his time as minister for finance.
Aer Lingus criticised the move and warned that it would have to reassess its schedule of flights.
"It is clear that Aer Lingus customers will be hardest hit with this new tax compared to customers of smaller regional carriers, which continue to enjoy protection from the market through the Public Service Obligation schemes and, in this case, lower taxes," said Aer Lingus corporate affairs director Enda Corneille.
"The consequences for the Aer Lingus network and its shape in 2009 will be evaluated over the coming weeks," he added.
British airline BMI, which operates from Dublin to London Heathrow was equally critical.
"This is a punitive tax that will hit leisure and business travellers alike and places an unfair burden on airlines and passengers at what is already a difficult time for a sector attempting to maintain low fares against a backdrop of increasing costs," said Dave Walsh, BMI's sales manager for the Republic. He added it was unfair that a similar levy was not being imposed on ferry traffic.
Tommy Broughan, the Labour Party's spokesman on transport, said the tax would negatively affect tourism. "It's another barrier being erected at a time when when tourism has done pretty badly," he said. "It's just one more in a myriad of charges for air travellers."
The Irish Hotels' Federation said the exit tax would have a negative impact on tourism and said the taxes were driven across Europe by an "anti-airline" lobby.
"A €10 tax is the equivalent of a 25 per cent levy on low-cost fares," said the federation's chief executive, John Power. This was a reference to the fact that Ryanair's average fare is about €40.
"I would be concerned about the impact that this would have on people coming into the country. In the low-fares model, every euro counts."
Executives of Ryanair were not available for comment yesterday. A spokeswoman for the airline said it re-affirmed its position from a statement issued on Monday in relation to speculation of an airport departure tax being introduced.
On Monday, Ryanair said a €10 levy would amount to a form of double taxation, be discriminatory against airlines over ferry companies and would have a detrimental impact on low-fares travel from Shannon airport.
The Dublin Airport Authority said yesterday that the departure tax was a Government revenue-raising measure and separate to airport passenger charges, which help to pay for airport facilities.
