The chief executive of Ryanair, Mr Michael O'Leary, called on the Government to "level the playing field" in relation to regional airports, and said his company has "no wish" to pull out of Knock International Airport in Co Mayo.
However, his company would "quite happily withdraw", as threatened, from January 11th if the airport places a £6 levy on customers as planned from next month.
Knock Airport's board has said it has no choice but to introduce the levy from January 17th, if it is to recover some £800,000 lost annually from the abolition of duty free. Duty free represented some 75 per cent of the airport's income, according to the board.
The Government must give Knock Airport the same treatment as Galway, Sligo and Mayo in terms of subsidies, Mr O'Leary said. "Knock and Ryanair have become the victims of past success, in that during the period when duty free was in place, the airport was able to break even.
"Why should £10 million be put into Shannon, and subsidies given to Galway, Sligo and Kerry in line with EU regional policy, while Knock is left to fend for itself?" This year, Knock and Waterford did not qualify for some £3.3 million provided under the essential air services programme for flights to regional airports.
"We have no wish to get into a head-to-head battle with Knock, and this is a Government issue," said Mr O'Leary. "If there was ever a location in the west of Ireland that offered a vital regional service, it is Knock."
Mr O'Leary agreed the airline feared a "knock-on" effect if such passenger charges were introduced. "Knock is targeting the wrong people when it is seeking to make up its shortfall. We are a low-cost airline, and 80 per cent of our passengers on this route between London and Knock are London-based."
Speaking on RTE's Morning Ireland yesterday, the Minister for Public Enterprise, Ms O'Rourke, said Knock was a privately run airport. She said it was "entirely wrong" of the Ryanair chief executive to be using the introduction of a "modest fee" at Knock for "wanting to get away or get out". Mr O'Leary "seems to have a penchant for moving from airport to airport as it suits him", the Minister said.
A spokesman for the Minister said £10 million had been announced in the National Development Plan for regional airports.
In 1998, Knock had been given £1 million of a £5 million allocation in capital grants to regional airports, and allowances were also given in the last two Budgets for marketing.