Thomsonfly's services began last week
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Coventry Airport says it is prepared to take its fight to allow a budget airline to continue flying from the site to the High Court.
Warwick District Council decided last week to take legal action to shut down a temporary passenger terminal there.
The authority believes the airport flouted planning laws by erecting the facilities, which are used by low-cost operator Thomsonfly.
But the airport says it has been advised that the terminal is lawful.
'Kick in the teeth'
Coventry Airport's management said they have taken further legal advice and plan to "robustly defend" their position.
They said they would prefer to settle the matter amicably, but were prepared to take the matter all the way to the High Court.
Coventry Airport managing director Bill Savage said: "We think it's disappointing to the numbers of passengers who've already booked and also to the over 360 new staff that have started here.
"It's something of a kick in the teeth when all we've been doing is what's in Warwick District Council's local plan."
The dispute centres on the size of the new development at the airport.
The council says it is big enough to require planning permission - the airport disagrees.
Thomsonfly began flying from Coventry on Wednesday, a few hours before the meeting at which the authority voted to take legal action to remove the passenger terminal.
The budget airline eventually hopes to offer services to 11 European locations.