EUjet, the new low-cost airline which will begin begin flying from Shannon Airport next week, is expected to announce the cancellation of regular flights between Shannon and Dublin.

The airline, which was established by Mr PJ McGoldrick, a former Ryanair chief executive and the founder of TransAer, the Shannon-based airline that closed in 2000, is expected to blame Aer Lingus's continued operation on that route for its decision.

Aer Lingus carries passengers between the two airports on its transatlantic flights which results in the availability of early flights from Shannon but no return flight. Shannon Airport has been keen to develop a regular service between the two airports mainly to cater for business travellers and had encouraged the adoption of this new route.

In June, the Minister for Transport, Mr Brennan, announced the opening of EUjet in Shannon and welcomed the launch of scheduled flights between the airport and Dublin.

It is understood that EUjet held discussions with senior Aer Lingus executives, which were arranged by Aer Rianta, to secure an agreement whereby Aer Lingus would cease selling seats on that route to make it viable for the new carrier.

EUjet chief executive, Mr PJ McGoldrick, said Aer Lingus had agreed to review this route and had given a clear indication that it would give the new airline a two-month lead-in time to market itself on the route but this has not happened."We do not intend to get into competition with Aer Lingus and at this point can only make a decision that we will not start on that route" he told The Irish Times.

An Aer Lingus spokeswoman said yesterday that Aer Lingus would continue to sell seats between Dublin and Shannon as part of its transatlantic service.

EUjet will launch new services from Shannon to Malaga, Murcia, Faro and Geneva from next week. Earlier this month it launched routes to the continent from Kent International Airport in the UK.

A spokesman for Aer Rianta said that Shannon airport was delighted that EUjet as a Shannon-based airline was launching a range of new services including a dedicated service to Dublin. "Shannon airport believes that the Shannon to Dublin route will be a success and hopes it will begin its service as planned."