Minister for Finance Brian Lenihan has announced the introduction of a single revised rate of air travel tax of €3 to come into effect on 1 March 2011.
Mr Lenihan said an air travel tax on passengers departing Irish airports introduced in March 2009 had been expected to yield €105m in 2010, despite the impact of the volcanic ash on air travel.
He said similar taxes apply in the UK, France, Australia, New Zealand and the US and from January 2011 will apply in Germany and Austria.
He said the new reduced air travel tax rate would be temporary until the end of 2011 and would be reviewed next year.
He said the rate would be increased unless there is evidence of an appropriate response from the airlines.
Mr Lenihan said he did not want to see the reduction of the fee being used by airlines as an opportunity to raise fees and charges.
In conjunction with this initiative, the Dublin Airport Authority is prepared to introduce an incentive scheme for 2011, which would provide, subject to conditions, a full rebate of airport charges for any additional traffic above the current levels.
