Ryanair says it will reduce the number of aircraft it is basing at Shannon Airport, blaming the Government's €10 airport tax announced in last October's budget.
As a result, the number of flights and destinations from Shannon airport from the summer will be cut.
Shannon Airport Authority said it was disappointed by Ryanair's decision to cut routes during the final year of a five-year deal with the airport. It said it did not accept that the airline could avoid its contractual commitment on the basis of a tax brought in by the Government.
The authority said it had met all its obligations and expected Ryanair to do likewise.
At a press conference in Shannon this morning, Ryanair chief executive Michael O'Leary said he would cut the number of aircraft based at Shannon from six to four for the summer schedule and from four to two from next winter.
This will mean a reduction in the number of destinations Ryanair flies to from Shannon, from 30 to 25. Mr O'Leary described the airport tax as 'idiotic and insane'.
He said Ryanair would now be unable to deliver the promised two million passengers to Shannon this year, and passenger numbers would be back to about 1.2 million for the year from April 2009 to April 2010.
Mr O'Leary said there was no doubt this would cause a row with the Shannon Airport Authority, but the traffic targets could not be achieved unless the airport tax was withdrawn.
He also said Ryanair would announce further flight reductions in Dublin next week, and cuts at other airports including Knock and Kerry.
