Ryanair will freeze expansion at Dublin airport if the Dublin Airport Authority's (DAA) plans for the second terminal get the go-ahead, according to Ryanair chief executive Michael O'Leary.

"If terminal two gets the go-ahead, I'm not sure we'll scale back services out of Dublin, but we'll end growth out of Dublin," he said.

Ryanair has objected to the new terminal, arguing that it is too expensive, is the wrong design and is in the wrong place.

An Bord Pleanála began an oral hearing into the plans yesterday.

Mr O'Leary has rejected comments from Minister for Transport Martin Cullen that Ryanair is delaying progress on a second terminal. "Ryanair supported the DAA's second terminal when it was first announced in 2005 at a cost of €200 million. What we object to is what the DAA has now developed, which is a second terminal costing €800 million and which the regulator has confirmed will double passenger charges at Dublin airport for the next 50 years," he said.

If the terminal was built at a cost of €200 million, Ryanair would double its capacity out of Dublin, increase its fleet at the airport from 20 to 40 aircraft and handle 16 million passengers, he said. He also said a second, competing terminal would have ended congestion, as well as leading to a reduction in charges at the airport.

"We think we could offer a competing second terminal at €4 per passenger," he said.

The hearing is expected to last two weeks. Ryanair, which is one of seven organisations that has lodged objections, will be making its presentation today.

The DAA said Ryanair was using inaccurate information. It said the only budgeted cost published by the DAA was €395 million and that airport charges would not double.