IRISH airlines are facing legal action over unfair administration charges and their refusal to refund taxes and charges to passengers who buy tickets but do not travel.

The airline industry has come under increasing fire for collecting charges that do not belong to it and making it cumbersome for customers to reclaim money.

Administration charges applied to tax refunds are also considered to be set at unfair levels, while in some cases, many other charges are not deemed refundable by airlines. Both elements are likely to feature as part of a pending action under European law aimed at protecting consumer rights.

The Sunday Tribune understands the move is due to be taken in court to prove that the way in which taxes and charges are dealt with by airlines is in contravention to EU law.

A spokesman for the National Consumer Agency (NCA) said: "We have been looking at this for quite some time and have already had engagements with the airlines in this regard. We are looking at legal options.

"In our view, the terms and conditions in this area are unfair and there is specific EU legislation relating to these unfair terms."

While the NCA was unable to elaborate on the progress of any such action, the move will be welcomed by the substantial number of airline customers who either miss or cancel flights every year.

Although the cost of the actual flight is generally non-refundable, government and airport tax and a variety of other unavoidable charges not belonging to the airlines are collected and retained by the company where the passenger does not travel.

"Effectively airlines are seen as collection agents for government taxes and other charges," said the NCA spokesman. "Any charges that are dependant on the passenger actually travelling should be refunded if the passenger does not travel."

The majority of passengers who either miss or cancel flights do not claim back taxes collected by the airline on behalf of Revenue and the Dublin Airport Authority (DAA). These fees are subsequently retained by the airlines.

Consumer rights watchdogs said that because there are no incentives for airlines to promote an awareness of refunds they don't bother.