'Travel tax will lead to 3,000 job cuts'
Thursday, 26 November 2009 13:04A report commissioned by Aer Lingus, Ryanair and CityJet has claimed that the €10 travel tax will lead to almost €500m in lost revenue, but will bring in only €116m in its first year.
The report, by aviation experts Amsterdam Aviation Economics, also said the tax would lead to 3,000 job losses and a 1.2 million fall in the number of departing passengers.
The three chief executives of the airlines - Christoph Mueller (Aer Lingus), Geoffrey O'Byrne-White (Cityjet) and Michael O'Leary (Ryanair) - issued a joint statement describing the tax as 'completely counter-productive'.
'It does not make sense to sacrifice huge revenues and lose jobs and passengers by imposing a tax which will generate just €116m,' they said.
Jan Veldhuis of Amsterdam Aviation Economics said airlines had absorbed the tax in lower fares to maintain their traffic volumes. '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, adding that this would further hit the Irish economy and the tourism industry.
