In a U-turn yesterday Aer Rianta said it would develop new routes out of Shannon next year.

Last week, public representatives in the Midwest expressed dismay after it emerged Aer Rianta was not entering commitments with airlines on new routes out of Shannon in 2003 due to the uncertainty caused by the ongoing Ministerial review of Shannon's management structures.

Aer Rianta's contentious policy was revealed after Ryanair stated that Aer Rianta declined its offer to locate an additional aircraft at Shannon. According to Ryanair's chief executive, Mr Michael O'Leary, the new routes would have generated an additional 200,000 passengers each year for Shannon.

Transport Minister, Mr Seamus Brennan TD, intervened at the weekend with his spokesman stating the Minister expects Aer Rianta to carry on business as usual at Shannon and that any contracts entered into now by Aer Rianta would be honoured in any new airport structure.

As a result, Shannon Airport boss, Mr Martin Moroney yesterday announced details of a incentive scheme to develop routes.The incentive package for all three Irish airports will be published later this week.

However, Mr Moroney said yesterday "that the deal on offer at Shannon will be far more favourable over what is on offer at Dublin and that is as it should be".

Mr Moroney said as part of the scheme, airlines would not be charged for the first year of any new service, and would be able to avail of discounts for the following four years.

Mr Moroney said he would seek to re-open negotiations with Ryanair on the development of routes out of Shannon next year.