Written answers

Wednesday, 28 April 2010

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 79: To ask the Minister for Finance if he has met or been briefed by airlines (details supplied) on the air travel tax; his views on the recent statements (details further supplied) on the negative impact of the air travel tax on Irish transport and tourism; the cost benefit analysis of the cost per year of abolishing the tax; and if he will make a statement on the matter. [12788/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I have received a report commissioned jointly by Aer Lingus, Ryanair and Cityjet from Amsterdam Aviation Economics in relation to the air travel tax. The report and the analysis therein, including those assumptions made by the authors, continue to be examined by my officials. However, I understand the report makes a number of important assumptions, and the data on which they are based, are omitted from the report. It would be useful if that data and indeed the underlying analysis were to be made available.

Comments on the air travel tax need a sense of balance. The key reason why we have less people travelling through our airports is that domestic circumstances are influencing travel patterns and this situation is broadly being reflected on an international basis. Some airlines that have expressed dissatisfaction with the air travel tax have seen fit to increase or introduce other charges to passengers who we are repeatedly told are extremely price sensitive. I make this point in order that the debate on this issue can be a more mature one. The air travel tax arising from travel undertaken in any month is payable by airline operators by the 23rd of the following month. The yield from the air travel tax received in the period from May 2009 to March 2010, in respect of travel undertaken during the months April 2009 to February 2010 i.e. eleven months is €105.4 million. I have no plans to abolish the air travel tax.

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