Ryanair will report Aer Rianta to the Competition Authority over the airport operator's new incentive scheme for airlines.

Aer Rianta announced on Sunday it was introducing a "route development" incentive scheme at Dublin, Shannon and Cork airports.

The scheme, which offers reductions in airport charges, is aimed at developing new routes and growing passenger numbers into the Republic.

The reductions are available to airlines setting up new routes.

Ryanair's commercial director, Mr Michael Cawley, said yesterday that his company would be complaining to the Competition Authority because the new scheme did not apply to airlines bringing in additional passengers on existing routes.

Mr Cawley said that Aer Rianta was "still completely uncompetitive" when compared to airport operators in continental Europe.

Mr Cawley also criticised the new Aer Rianta scheme on the grounds that the previous scheme was more attractive to airlines. Under the new arrangements, airlines delivering new routes will receive a discount on airport charges of 100 per cent in year one, with this falling to 20 per cent in year five in the case of Shannon and Cork, and to 50 per cent in year three in Dublin.

Previously, reductions of 100 per cent were available for four years in Shannon and Cork and for three years in Dublin.

Ryanair clashed with Aer Rianta earlier this month when it emerged that the operator had declined the airline's offer to introduce new routes from Shannon.

An Aer Rianta spokeswoman said yesterday that Ryanair's offer had been contingent on "ridiculous demands".

The spokeswoman added that Aer Rianta had since commenced talks with at least three airlines interested in setting up new routes from Shannon.

More than 15 million passengers passed through Dublin, Shannon and Cork in the first nine months of this year, an increase of 3.7 per cent on the same period last year.

Numbers in Shannon declined, however, falling by 4 per cent to 1.9 million.