Aer Rianta has frozen a decision on new services from Shannon Airport until the Minister for Transport, Mr Brennan, rules on the future management of the airport.
The stance by Aer Rianta has seen it turn down an offer by Ryanair to establish new routes out of Shannon next year against a background of a 5 per cent fall in passenger numbers this year.
Ryanair chief executive Mr Michael O'Leary said the new routes would have provided an additional 200,000 passengers for Shannon next year.
Aer Rianta's policy yesterday came under fire yesterday from Mr Brennan whose spokesman said: "The Minister expects Aer Rianta to carry on business as usual at Shannon. It should be basing its business decisions on sound commercial factors rather than confusing day-to-day operations with long-term strategic policies."
The spokesman said the Minister saw no reason why Aer Rianta should not continue to attract business to the airport at the current time, stating that any contracts entered into now by Aer Rianta would be honoured in the future.
Mr O'Leary said yesterday: "The new routes would have provided 10 per cent growth for Shannon next year but, in response to our offer, we were told in a letter by Aer Rianta 'thanks but no thanks'."
Shannon Airport chief Mr Martin Moroney said it would have been irresponsible for Aer Rianta to enter into a commitment for next year when it did not know if it would be involved in running the airport after the Government review on the airport's management structure.
He added: "We cannot take the risk from a legal point of view to enter into a deal when there may be a new company running the airport. Until such time as we know the structure, commitments cannot be entered into for next year."
Mr O'Leary said: "We don't care, we will locate the aircraft elsewhere, but it is tourism interests in the mid-west that will be losing out."
He accused Aer Rianta of playing politics and trying to embarrass Mr Brennan in their refusal to deal with airlines as a result of his review of the management structure at Shannon.
The Minister is expected to make a decision on the future management of Shannon before the end of the year and one of the options being considered does not involve Aer Rianta.
Mr O'Leary claimed: "Aer Rianta's reason for not dealing with us does not make any sense at all. Aer Rianta is charged with developing traffic and new routes and that is not happening at Shannon."
Mr Moroney said the deal Ryanair was seeking was extremely onerous on the airport and it was time for tourism interests in the region to offer cash support to help establish new routes for Shannon.
