Ryanair may face EU probe on charges of inflating taxes |
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Mon, 10 Jul 2006 16:35
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LONDON - Europe's biggest budget airline, Ryanair PLC could be the focus of a EU probe into allegations that it misstated its taxes and the passenger numbers on its European routes, according to a report in The Daily Telegraph.
The report said that Ryanair allegedly inflated charges on routes from Dublin, Treviso, Charleroi, Rome, Pisa and Alghero airports. Such practices contravene EU law. Eva Lichtenberger, an Austrian MEP said she would call for an European Commission inquiry following allegations on German television programme PlusMinus. "This is a very serious matter. The public is not being told the true cost of the airport fees, which I believe violates EU consumer protection rules. This practice is illegal in Austria," said Lichtenberger, who is also a member on the European parliament's transport committee.
Commenting on the accusations, Simon Evans, chief executive of the Air Transport Users Council, said that inflated charges were a common problem in the aircraft industry. "Misrepresenting government taxes is plain naughty, but a lot of airlines have been adding extra charges pretending that they are fees imposed upon them," he said. But Ryanair has not yet added any fuel surcharges like other airlines following the surge in oil prices to around $70 a barrel.
Ryanair denied that it misrepresented any charges, but acknowledged that some charges were in reality service taxes. "Many charges at airports are referred to as taxes because their level has been set by governments even though they do not represent revenue which goes directly to the government," the airline told the newspaper.
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