Ryanair steps up price war with Lufthansa

Low-cost airline Ryanair has stepped up its price war with Lufthansa.

Ryanair has cut 30% from fares between its new continental European base - Frankfurt Hahn airport - to Stansted, Glasgow and Shannon.

The one-way fares offer will be on sale for the next 10 days and travel must be completed by mid-March.

Lufthansa, the German national carrier, flies from the Frankfurt Main airport 60 miles away.

Last week the airline obtained a court injunction in Cologne to stop Ryanair using comparative advertising in the German market.

Ryanair chief executive Michael O'Leary says he will appeal against the ruling. He adds: "We are confident that once the details have been explained to German courts, Lufthansa's injunction will be lifted."

He says Ryanair advertising would be continued, making it clear that Lufthansa flew from Frankfurt Main and Ryanair from Frankfurt Hahn - and that both were internationally-recognised airports.

Unlike most other airlines, independently-run Ryanair has reported buoyant business since the September 11 terrorist attacks on New York and Washington.

Aer Lingus is seeking 2,000 job cuts from their 6,500-strong workforce as part of a survival plan after cutting 25% of its services.

Although 1,600 employers of the company have applied to be laid off voluntarily, chief executive Michael Walsh says the need for compulsory redundancies cannot be ruled out.

He says that some parts of the airline had been over-subscribed in the voluntary redundancy scheme.