The head of Ryanair has predicted that air fares will reach record lows this year.
Mr O'Leary said competition was forcing down prices
Michael O'Leary said that competition between airlines was increasing and that was driving down prices.
However, speaking at the opening of a new £10m Ryanair hangar at Prestwick, Mr O'Leary forecast that not all companies would survive.
He said the facility would help bring more flights to Prestwick and he would announce new routes later this year.
The hangar will be used for aircraft maintenance, repair and overhaul and will be large enough to accommodate three of the Ryanair Boeing 737 aircraft.
About 200 jobs will be created, providing work for engineers, technicians, mechanics, apprentices and others over the next five years.
The project has been funded jointly by Ryanair, the Scottish Executive, Scottish Enterprise Ayrshire and Scottish Development International.
Mr O'Leary said: "Ryanair's 10-year history in Scotland and on-going
commitment to the further growth and development of Glasgow Prestwick
International Airport is further demonstrated with the opening of this new
maintenance facility and the creation of close to 200 jobs for the local
But he warned Ryanair would halt all further job creation at the facility until a row over "ridiculous rates" was settled.
The airline is unhappy over its rates bill
The airline boss said a rates bill of £110,000 from South Ayrshire Council had put future investment and job creation at risk.
He said: "The local council will tell us it's not their fault, it's the government's and the government will tell us it's not their fault, it's the local council.
"But somewhere in the middle is us and we need this thing sorted out or we are not going to continue to stimulate jobs and invest millions of pounds here if we are going to be met with bills for 110 grand."
Tom Cairns, chief executive of South Ayrshire Council, said: "The council has
no discretion whatsoever in this matter."
A spokesman for the Scottish Executive said an appeal process was open to any business who wished to contest the rates and that Ryanair had done so and were now trying to reach an agreement with assessors.