Irish to oppose jet fuel duty

The Government and the two largest Irish airlines are likely to resist strongly any EU attempts to impose duty on jet fuel.

According to reports from Berlin yesterday, European Union finance ministers may give backing to a proposal to impose duty on jet fuel to raise funds for developing countries.

The European commissioner in charge of tax policy, Mr Laszlo Kovacs, made the claim yesterday after talks with the German finance minister, Mr Hans Eichel.

However, according to reports in the European press, the proposal is likely to be resisted by the Irish Government. The Department of Transport declined to comment last night.

A spokesman for Ryanair indicated that the airline was opposed to any extra costs being imposed on airlines. "Ryanair would strongly oppose anything that would increase the cost of air travel for European consumers," she said.

A senior source at Aer Lingus also said the airline was strongly opposed to extra charges on jet fuel, which is already an expensive commodity.

Aer Lingus and Ryanair have for many months refused to add a fuel surcharge to their tickets, despite rising oil prices - in contrast to large flag carriers like British Airways.

Speaking in Berlin, Mr Kovacs said that while there was support for imposing duty on fuel tax, he cautioned the EU against going it alone on such a tax without first seeking broader international support since kerosene duties could put EU airlines at a competitive disadvantage to non-EU rivals.

"I feel [this proposal has] strong support, because the kerosene tax is not to collect new revenues for the member-states but to fund development aid, which is an aim which cannot be challenged," Mr Kovacs told reporters after talks with Mr Eichel.

EU finance ministers are due to discuss the idea for the first time on Thursday after Europe's big four - Britain, France, Germany and Italy - agreed on the concept at a recent meeting of G7 ministers focused on helping Africa. - (Additional reporting, Reuters)