AIRPORT AUTHORITIES and the Revenue Commissioners may be losing money because of the refusal of airlines to refund taxes and charges for cancelled flights, the Dáil has heard.

Labour transport spokesman Joe Costello referred to the charge by the National Consumer Agency that “airlines were ripping off the consumer to the tune of €28 million annually by refusing to refund the taxes, charges and administrative funds, while not refunding cancellations as well”.

“This means a healthy sum of money is being lost, both to the Dublin Airport Authority and perhaps, in some cases, to the exchequer,” he said during Dáil transport question time.

Mr Costello asked Minister for Transport Noel Dempsey whether he had any plans to “ensure that the airports and airport charges are recouped by the airport authorities so that we do not see ‘Rip-off Ireland’ continuing into the recession, with the airlines simply taking all that money for themselves”.

Mr Dempsey said the issue “is one specifically for the airport authorities and, perhaps, for the Department of Finance as regards the airport taxes that are paid and subsequently not transferred to the appropriate authorities”.

He added: “I shall raise it with Dublin Airport Authority, and attempt to ascertain what action it is taking to ensure that it does not incur revenue losses in circumstances such as these.”

The Labour spokesman suggested it would be appropriate “to have a code of conduct operating in the aviation industry in relation to the refund of charges that are appropriate to the authority itself and appropriate to the Government if somebody has cancelled or there is a no-show”.

The Minister should “impose a policy in this area” for all airlines because some “make a level of return and others make none”.

The Minister said; “There is a policy in that anyone who owes taxes to the State must pay them.”