Interests in the mid-west yesterday warned of disastrous consequences if the Shannon transatlantic stopover is abolished. The stopover is likely to be discussed at a meeting of EU transport ministers in Luxembourg next Tuesday.

EU Transport Commissioner Ms Loyola De Palacio has already signalled her intent to liberalise the European aviation industry, which would necessitate the removal of the Shannon stopover.

Both the Taoiseach, Mr Ahern, and the Minister for Public Enterprise, Ms O'Rourke, said yesterday the Government would oppose any such move by the Commission. That has done little to allay fears in the mid-west over the future of Shannon airport, where airport bosses, following the September 11th attacks on the US, already anticipate a downturn next year in passenger numbers of 800,000 - 30 per cent of Shannon's traffic.

In response, Shannon Development has established a marketing action-force from various bodies in the region.

According to Mr John King of Shannon Development, the concerns of the tourist industry are now very deep and warranted, and they require a major national and regional response.

Even without the removal of the stopover, Mr King said the anticipated reduction in air capacity at Shannon represented the partial closure of a vital element that has been feeding the growing base of tourism business in Shannon and the West.

The stopover requires airlines to ensure half their flights between Ireland and the US land at Shannon to allow passengers disembark. However, a spokesman for Signal, the Shannon workers' lobby, said there was a real worry the Shannon stopover would become a trade-off with Europe to secure Aer Lingus's future.

He said: "Our worst fears are materialising. Transatlantic traffic represents 35 per cent of Shannon passenger numbers, compared to 7 per cent for Dublin. That gives an idea of what is at stake. Suggestions have been made that Shannon should concentrate on Europe. That would not be sufficient for Shannon to survive all year round. If the stopover goes, Shannon will become a seasonal airport."

The president of the Limerick Chamber of Commerce, Mr David O'Mahony, said the Shannon stopover issue was the most important facing the region.