A small airport with a relaxed atmosphere and a good restaurant, plenty of car hire firms nearby and served by Monarch from Gatwick.
Excellent bus service into the centre of Granada, 3 euros (May '07): departures after each arrival. If no staff are on duty at the tourist information desk, lean over and grab a copy of the excellent city map and of the small guide booklet anyway.
Monarch no longer fly into Granada so it's Ryanair from Stansted or fly into Malaga and get the coach to Granada (or hire a car).
I found this airport excellent value. The airport is located about 20km outside the city on the west side so you'll need to rent a car.
Sorry guys, but it appears that no UK airlines fly direct to Granada anymore. So Malaga it is then. Technically there is an option to fly to GRX with a stopover in Madrid or Barcelona, but I've checked this out extensively and the timings/prices never seem to make it worthwhile. The positive in all this is perhaps that it will preserve the jewel of Andalucia for the eyes only of those who make the effort to seek it out ...