Aer Rianta has set aside about £20 million (€25.4 million) to encourage airlines to open routes to its airports at Dublin, Shannon and Cork. The airports authority announced yesterday it would levy no airport charges for three years for flights on new routes into Dublin airport from Britain, Continental Europe and the US.

For Cork and Shannon, the charges would be waived for four years.

The incentive package was immediately described as "a shambles and utterly hopeless" by Ryanair's chief executive, Mr Michael O'Leary.

Aer Rianta's chairman, Mr Noel Hanlon, said Aer Rianta was committed to supporting the aviation and tourism sectors following the events in the United States on September 11th. For the first time, it will offer direct financial assistance where new routes offer potential for increased tourist traffic.

Mr Hanlon believes the package will cost Aer Rianta about £20 million. He said the new incentives were among the most attractive available in major cities and airports in Europe.

"I don't know what Ryanair will say, probably that it is still not enough," Mr Hanlon added.

Mr O'Leary said the incentives were useless. "They extend over only three years in Dublin. We are being offered 10 and 20-year deals at European airports."

He said Aer Rianta was placing a narrow definition on what constituted a new route. Aer Lingus was operating a once-weekly service between Shannon and Paris. Mr O'Leary claimed Ryanair would offer a daily service but was denied the Aer Rianta benefit because the route was not "new".

The new scheme was signalled in the Dβil by the Minister for Public Enterprise, Ms O'Rourke, last week, when she was outlining the extent of predicted losses at Aer Lingus following the attacks on the US last month.

Mr Hanlon said Aer Rianta was engaged in negotiations with a "high-profile low-cost carrier" to begin operations out of Dublin. The carrier is understood to be Easyjet, although Mr Hanlon would not confirm this. Mr O'Leary said Easyjet had repeatedly stated it had no interest in serving Dublin.

Mr Hanlon separately confirmed that the head of Aer Rianta's Shannon operation, Mr Bob Goldfield, had submitted his resignation to assume the post of chief executive of the Dover Port Authority. He will leave next March.

He also announced that Aer Rianta was pulling out of a contract to provide catering at Bunratty Castle from the end of the year. The authority has held the contract for 35 years.