The number of passengers using Kerry Airport, the privately owned regional airport in Farranfore, between Killarney and Tralee, continues to rise, as the airport starts talks on its subsidised routes.

Ryanair revealed last night it had to reduce flights on a twice-weekly Kerry to Faro service due to a lack of aircraft capacity.

RYANAIR said it would resume operating flights from Cork and Kerry to Dublin if airport costs were cut and the subsidised routes were scrapped.

RYANAIR boss Michael O’Leary has agreed to arbitration in a bid to resolve the row with Transport Minister Noel Dempsey regarding services on the Kerry-Dublin route and state airline subsidies.

Ryanair launched its first flight on the Kerry-Dublin route this morning when a Boeing 737-800 series jet departed Kerry at 6.25am and landed in Dublin at 7.05am.