Airlines' windfall from departure tax no-shows
RYANAIR and Aer Lingus could gain hundreds of thousands of euro as a result of the Government's new air tax -- by pocketing the money paid by no-shows.
The Department of Finance yesterday clarified to the Irish Independent that booked passengers who do not fly will be entitled to get their €10 tax back -- but they face an administrative nightmare if they wish to do so.
Ryanair, Aer Lingus and other online airlines will have already pocketed the tax and, in many cases, it will cost too much to get it back.
All airlines apply an 'administration charge' for refunds, only giving back the excess over that charge. For Ryanair and Aer Lingus the charge is €20, with Cityjet charging €17.50, BA €30, and BMi stg £25 (€30).
Aer Lingus insisted it was worthwhile applying for a refund in many cases.
For instance, total taxes on a return flight to Heathrow are typically around €67, with Paris at a similar level. So even after paying the administrative fee of €20, a passenger is entitled to a €47 refund.
A Department of Finance spokeswoman said: "If no departure is made, the person is not liable. It then becomes a matter . . . between the person and their airline."
A Ryanair spokesman said it stood to gain only an "inconsequential" amount from the changes.
- Senan Molony
