Ryanair has been accused of holding Granada Airport to ransom after it was revealed that the airline is asking for more money to continue flying into the city, the Spanish press reports.

Flights between Granada and Stansted were apparently cancelled after Ryanair announced it was grounding 20 planes this winter in a bid to fight soaring fuel costs. But a regional government representative claims the budget airline said it would reconsider the route if it received more money from the city.

Junta representative in Granada Antonio Martínez Caler said: “In mid-May, I received a phone call from Ryanair representatives stating the service to London was cancelled. Then on 2 June, the company contacted me again asking for more money to save the flights.”

According to the local reports, the Junta currently pays Ryanair e300,000 a year to fly into the area, with Granada’s Chamber of commerce adding another e700,000. Martínez Caler has refused to divulge how much more money the airline is demanding,

A Ryanair spokesman admitted it was grounding flights this winter but refused to confirm whether Granada would be affected by these cancellations. She also refused to comment on the allegations of financial demands.