The long-running row between budget airline Ryanair and Birmingham International Airport appeared to have been resolved last night after the Irish carrier announced the start of a new service to Shannon.

The move came as fast-growing Ryanair placed an order for another 27 Boeing 737-800 airliners worth $1.9 billion (#964.4 million) at list prices.

The airline said its new Shannon flight from Birmingham would take to the air on November 7.

The service will operate six times weekly and complements Ryanair's 17 weekly flights between Birmingham and Dublin.

The development is part of a raft of new routes unveiled by Ryanair's outspoken chief executive, Michael O'Leary, from its Shannon base to Dublin, Fuerteventura, Kaunas, Luton, Riga, Leeds Bradford and Tenerife.

Ryanair's head of sales and marketing UK, Caroline Baldwin, said: "Ryanair is delighted to add this additional route from Birmingham which will deliver 85,000 passengers in the first year through Birmingham airport bringing our total annual passenger numbers at Birmingham to 330,000, generating a visitor spend of #25 million and sustaining 330 jobs in the region.

"The new route to Shannon goes on sale today and to celebrate we have slashed #20 off all return flights and we urge passengers to book today on www.ryanair.com as these bargains will sell out soon."

Two years ago Mr O'Leary slammed BIA after announcing a major expansion of Ryanair's operations at rival East Midlands Airport.

Pulling no punches, Mr O'Leary said it was a "tragedy" that Birmingham had failed to cut its charges.

He also claimed it was overdependent on British Airways, predicting the UK flagship airline would pull out of Birmingham within the next five years.

Apart from the timescale, his forecast proved correct. Earlier this year rival operator Flybe took over BA Connect after the decision by British Airways to dispose of its loss-making regional operation. The move ended a near 70-year association between BA and Birmingham International.

The Shannon route is the first sign that the frosty relationship between Ryanair and BIA is now thawing, although Ms Baldwin yesterday adopted a tactful stance when reminded about Mr O'Leary's earlier comments.

She said only that the new service sent a "positive signal" and a sign that the airport was going through a "reflective period" in the light of current changes in aviation.

Peter Vella, business development director at Birmingham International, said: "We are pleased to add this new route to Shannon to our expanding portfolio of Irish destinations.

"The route is sure to be a success, particularly with the Irish community in the Midlands who regularly travel back to visit friends and family."

Meanwhile, Ryanair's purchase of 27 more Boeing 737-800s, to be delivered in 2009/10, means the Irish carrier's total fleet will be 262 strong by 2012.

Ryanair said the planes would be fitted with fuel-burn reducing and carbon dioxide-reducing features that would "strengthen our position as Europe's cheapest, greenest and cleanest airline".

Ryanair's chief finance officer and deputy chief executive, Howard Millar, said: "Ryanair guarantees passengers that they will not find a cheaper fare with any other airline on any of its 487 routes.

"The combination of the lowest per-seat operating cost and the reliability of these Boeing 737-800s will benefit millions of additional passengers in the coming five years as we extend our route network and our guaranteed lowest fares."

Marlin Dailey, Boeing's vice president of sales for Europe, Russia and Central Asia, said: "The 737-800 continues to demonstrate its exceptional suitability for the low-fare business model. It consistently generates more revenue and more profit through industry-leading reliability and higher utilisation."