Ryanair wins EU court ruling over Irish air travel tax

BRUSSELS, Nov 25 (Reuters) - Budget carrier Ryanair won a victory in the European Union's second-highest court on Tuesday regarding its complaint against Ireland (Other OTC: IRLD - news) 's air travel tax.

Europe's biggest low-cost airline had argued that the tax, not levied on transit passengers, constituted state aid for the benefit of rivals Aer Lingus (Other OTC: AELGF - news) and Aer Arann as they had a higher proportion of passengers transferring in Ireland.

Ryanair said the air travel tax hit its point-to-point model.

The Commission had found in 2011 that the exemption of transit passengers from the tax did not constitute state aid. However, the Luxembourg-based General Court said on Tuesday there were indications that the Commission had difficulties in its finding and should have launched a formal investigation.

The court, the second-highest court in the EU, therefore annulled that part of the Commission's decision.

Ryanair has since agreed to boost the number of flights from Irish airports after the government scrapped the 3 euro tax in April 2014. (Reporting by Philip Blenkinsop; Editing by David Holmes)