Ireland is to cut its air passenger duty from €10 to €3 in a bid to boost tourism.
The Irish government has decided to reduce the tax from March 2011 until the end of the year and then plan to review the situation.
It says the tax will be increased unless the airlines give “an appropriate response”.
“I do not want to see the reduction in the tax being used by airlines as an opportunity to raise their fees and charges,” said minister for finance Brian Lenihan
The tax, paid by passengers departing from Irish airports, was introduced less than two years ago.
Ryanair chief Michael O’Leary said the reduction would do nothing to reverse a drop in air traffic as it was outweighed by a hike in airport fees.
By Bev Fearis
