Ryanair has claimed that because of restrictive pricing arrangements at Cork Airport, it will not introduce its new fleet of 25 Boeing 737s there. The airline, which spent $30 million (€27.7 million) on the new aircraft and which expects to carry six million passengers this year, says Aer Rianta is being unreasonable and that the airport authority would add significantly to its costs if its demands were met. The Cork Airport manager, Mr Joe O'Connor, said Ryanair had been offered a 100 per cent discount on additional growth for the next three years. After this, the deal on offer was that the airline would have a 50 per cent discount on new growth for a further two years. "This was an exceptionally good offer and it is unfair and unrealistic of Ryanair to suggest otherwise," he said.

But Mr Michael Cawley, Ryanair marketing manager, said Aer Rianta's version of the offer was different from what was actually put on the table. The airport authority had offered a 100 per cent discount on new growth for the first year, but the airline had no idea and had not been told what the arrangement would be in subsequent years, he said.

Unless the situation was resolved, Ryanair would transfer the new fleet to Farranfore Airport in Co Kerry and Knock Airport in Co Mayo, Mr Cawley said.