Taoiseach Brian Cowen has told the Dáil that Aer Lingus has a contract for Hangar 6 at Dublin Airport and the lease could not be broken.
Ryanair said this afternoon that there was no legal impediment to moving Aer Lingus out of the facility. However, a spokesman for the Tánaiste has denied the suggestions by Ryanair.
The spokesman said a clause in the DAA contract permits the Authority to terminate the least on 24 months notice if it requires the hangar for operational or development purposes.
In one of the liveliest Dáil sessions for sometime, the Taoiseach was earlier accused of not being in charge and of allowing the Dublin Airport Authority to run the country.
In the Dáil today, Fine Gael Leader Enda Kenny said the Government was just making excuses while 300 Ryanair jobs went abroad. He urged the Taoiseach - if he thought that Michael O'Leary was bluffing - to call his bluff. He said the Taoiseach should call in Mr O'Leary today.
Brian Cowen told the Dáil the Government was not indifferent about the jobs, but he said they could not break the law.
He said Aer Lingus had a contract for the hangar being sought by Ryanair and he said Aer Lingus indicated that they needed it. He told Mr Kenny that if he tried to tear up that lease, there would be consequences.
Ryanair says it appears the Government is more concerned about protecting Aer Lingus' occupation of an empty hangar than they are about creating 300 new jobs.
Coughlan calls for common sense and goodwill
Meanwhile, Tánaiste Mary Coughlan, has said she believes that a positive outcome to the Ryanair proposal to establish a maintenance facility at Dublin Airport is still achievable - if common sense, goodwill and determination are shown.
She made her comments in a statement after last night's meeting with Ryanair chief executive Michael O'Leary, about the creation of 300 aviation jobs, ended without agreement.
Ms Coughlan said she continues to be available and asked the Ryanair chief executive to reflect further on the situation.
The Tánaiste said she enquired as to why Hangar 6, which is licensed to Aer Lingus for the next 20 years, was the only option being pursued by Ryanair.
Mr O'Leary said the Minister confirmed that she would not ask the Dublin Airport Authority to ask Aer Lingus to vacate the hangar formerly used by SR Technics. He said he would now be approaching other airports in Europe about the jobs.
