Aer Lingus says travel tax may hit Shannon Atlantic routes
Thursday June 11 2009
Trans-Atlantic Aer Lingus services to and from Shannon could be severely curtailed this winter unless Finance Minister Brian Lenihan rescinds the airport travel tax introduced in last December's Budget, the airline has warned.
In a letter to Mr Lenihan yesterday, Aer Lingus chairman Colm Barrington said that all the carrier's US services to and from Shannon face "acute" challenges this winter. He also said that Aer Lingus services from Dublin to Washington and San Francisco are also under pressure.
The airport travel tax came into effect at the end of March, and levied a €10 charge on virtually all passengers departing from Irish airports.
Mr Barrington has told the minister, who technically controls the Government's 25pc stake in Aer Lingus, that the tax will have "a material and negative bearing on our (Aer Lingus') ability to maintain our previous level of operations".
Speaking to the Irish Independent yesterday, Mr Barrington declined to say whether trans-Atlantic services from Shannon to the US could be axed for the winter.
Mr Barrington also told Mr Lenihan that winter business for Aer Lingus is much weaker than for summer months and that "advance bookings and expected returns for the forthcoming winter are significantly behind those of previous years".
Aer Lingus and Ryanair have been highly critical of the tax.
"It is my strong belief that this tax is costing the country dearly and that the country is losing much more than the Government is gaining," Mr Barrington told the minister.
The tax is expected to yield €125m in a full year for the Government.
- John Mulligan
