Ireland's two biggest airlines have been ordered to pay millions to the government, in a legal row over the former travel tax.

The European Court of Justice previously ruled that the travel tax was discriminatory - because passengers from Dublin paid a lower rate than those from other airports.

But it also told the State to recoup the difference from the airlines - leaving Ryanair and Aer Lingus to pay €€8 for every passenger who benefited from the lower rate.

The court has now rejected an appeal from the European Commission, meaning the airlines will have to pay extra travel taxes on behalf of every passenger who benefitted from the lower rate.

The payments are likely to stretch into the millions of euro.

However the two major airlines have indicated that they plan to sue the State, in turn, for the losses.

In a statement, Ryanair says the ruling clears the way for it to pursue a High Court action against the Irish Government to recover €88 million euro of damages the airline suffered as a result of the illegal tax.

Aer Lingus has also stated that it has High Court proceedings pending against the Irish Government seeking damages for losses arising from the Air Travel Tax.