Ryanair said yesterday that it was cutting the flights on its Stansted/Newquay route from 28 to 16 per week because of what it described as an "anti-visitor" tax imposed by Cornwall county council.
The local authority responded by inviting other airlines to take up the take-off and landing slots Ryanair will vacate in November.
Cornwall is to impose a £5 fee on all passengers over the age of 16 flying out of Newquay from late next month. It says the levy is needed to help fund a £2.8m expansion of the airport.
Ryanair attacked the levy as "ridiculous", and warned that it would consider cutting flights to Newquay further if demand fell as a result.
Michael Cawley, the airline's deputy chief executive officer, said the airport was in a competitive, price-sensitive market against 84 other low cost destinations available on Rynair flights out of Stansted.
Mr Cawley claimed that "Cornwall's ridiculous decision to introduce a £5 tax would result in increased revenue of £250,000 for the council and reduced income for the region of £10.5m - leaving Cornwall worse off to the effect of £10m a year in terms of expenditure by visitors brought by Ryanair from London."
The airline said its figures for the potential loss to the region were based on studies done elsewhere in the UK.
The council said it was disappointed by Ryanair's response, but its executive member for the economy, Andrew Mitchell, said the airport development fee was essential.
"Newquay is one of the fastest growing regional airports in the UK, with passenger figures growing from 118,000 in 2002 to a predicted 334,000 in 2005."
Mr Mitchell said that in recent months, bmibaby, Monarch, and Air Southwest had either introduced flights or announced plans to do so.
"We are currently talking to a number of other operators about expanding the flights to and from Newquay. The flights to London Stansted are very popular with both local residents and visitors and I am confident that another airline will be interested in taking up any slots freed up by Ryanair's decision."
