Kerry Airport is to look for equal treatment with Iarnród Éireann when it comes to Government travel subsidies for old age pensioners, it emerged at its board's annual general meeting yesterday.

Kerry Airport, a privately run airport, last year saw passenger numbers grow to almost 390,000, a third more than just two years ago.

However, chairman Denis Cregan said that numbers this year would remain at or around the 2005 level and the one million passenger number was now unlikely to be achieved by 2012.

Mr Cregan said increased competition from a revamped rail service in particular as well as "being caught in a fairly competitive market" between Cork and Shannon airports would make it difficult for Kerry Airport to see the kinds of dramatic growth it had experienced in recent years continue unabated.

He also called on Aer Arann, which operates the subsidised Public Service Order Obligation Kerry to Dublin route, to improve its performance in the light of the increased competition from rail. The meeting heard flight cancellations as well as delays, and changes to the schedule had dogged the Aer Arann Dublin to Kerry service.

There were complaints from the floor that pensioners were choosing the rail service over air because of being able to avail of free travel on Iarnród Éireann.

Older people should have cheaper rates on the service from Kerry to Dublin, Kerry airport director Kathleen O'Regan-Sheppard said. This was particularly the case in Kerry as it had an ageing population. "We are calling for the same subsidy for Aer Arann or any other internal carrier from Kerry as would otherwise be given to Iarnród Éireann for internal transport."

Ms O'Regan-Sheppard called for tax reliefs for regional airports on a par with local authorities. Last year a tax bill of €122,000 had eaten into the profits of the airport of €496,000 before tax. Revenue overall grew to €6.5 million, up 2 per cent on 2004, the meeting heard.