With unemployment twice the Belgian average and its traditional industries in terminal decline, this town to the south of Brussels saw the arrival of low-cost airline Ryanair as a vital lifeline.

Now many are worried that a dispute between the carrier and regulators at the European Commission will see an end to the flood of passengers through the town's formerly sleepy airport and the economic boost the traffic brought.

Ryanair has not solved all Charleroi's problems, which include a high crime rate and unemployment of more than 20 per cent, but it gave the town an important boost.

"If Ryanair left it would be catastrophic. It would be just too difficult to find work," said Mr Mohamed Belhejdoub, who manages the airport bureau de change.

Ryanair first arrived in 1997, making the obscure, little-used airport its European hub. It was part of the firm's well-established business model of avoiding the high-cost airports of capitals to drive down ticket prices.

Thanks to Ryanair, Charleroi added 700 jobs on-site to the little more than 200 that existed previously and added more than 2,600 indirectly, according to research conducted for the regional airports agency, based on 2002 passenger numbers.

Before Ryanair arrived, there were few jobs and lots of social problems in Charleroi, and its 400,000 population was still suffering from the decline of the town's traditional heavy industries of coal, steel and glass.

"Charleroi used to have a reputation for violence, drugs and car theft.

"There were no jobs in the town. People either went to Brussels or Flanders to seek work," Mr Belhejdoub said.

The case is also sensitive nationally.

Belgian Prime Minister Mr Guy Verhofstadt has promised to create 200,000 jobs by the end of 2007, but last year jobless figures rose by 8,000.