Irish low-cost carrier Ryanair threatened to cut its services from the UK's Edinburgh Airport from seven aircraft to six resulting in a claimed loss of 300 jobs.
Michael O'Leary, the airline's chief executive, announced the move following a breakdown of talks with BAA over a planned expansion of services there.
O’Leary also warned that there could be further cuts in the airline's operations at the airport if BAA does not agree to reduce charges when Ryanair's five-year agreement comes up for renewal in October 2102.
Ryanair will cut services to Berlin, Malmo, Murcia, Ibiza and Tallinn from April.
Mr O’Leary said: "Ryanair regrets BAA Edinburgh Airport's rejection of our proposals for a competitive cost base which would allow Ryanair to further grow our traffic and routes for summer 2012.
"Sadly BAA Edinburgh seems to prefer higher costs, even if it means fewer passengers and jobs at Edinburgh."
However a BAA spokesman disputed the jobs figure. He said: "We don't recognise that figure and we don’t understand where it has come from."
The BAA spokesman added: "Ryanair are 20 percent of our business and are a valued customer but we have to ensure we are doing our best for all airlines."
Gravity always wins!