Ryanair is cutting the number of flights out of Shannon Airport by 75% from next April, which will result in the loss of 150 jobs.
At the moment, the airline has four aircraft based in Shannon. That will be cut to just one.
The airline's current contract with the airport runs out in April 2010.
Shannon Airport has confirmed that it is not entering a new five-year agreement with Ryanair, blaming the airline's ‘unreasonable demands’.
In a statement, Ryanair said it had offered Shannon better cost terms than are presently being offered by many other lower cost airports in better destinations all over Europe.