Irish airline operators have dismissed proposals to establish a regulator for the three State-owned airports, saying such a move will not resolve the row over charges unless there is real competition in the market.

Proposals to establish a regulator to adjudicate on airport charges are contained in a report prepared for airports operator Aer Rianta which the Minister for Public Enterprise, Ms O'Rourke, will bring to Cabinet next month. It is believed that a regulator would resolve the charges row between Aer Rianta and airport users and the appointment is seen as an essential prerequisite to privatising Aer Rianta.

But Ryanair chief executive Mr Michael O'Leary rubbished the proposals yesterday, saying that having a regulator for a monopoly is a waste of time. "If we don't get another terminal or some sort of competition among the airports, then establishing a regulator will just mean having another civil servant sitting around all day. What will he or she do?" he asked.

CityJet chief executive Mr Pat Byrne said he doubted whether a regulator would be effective. "Is a regulator just going to regulate the charges which Aer Rianta deems necessary to impose, or is he going to focus on value for money and efficiency?" he asked.

An Aer Rianta spokesman said a regulator would make decisions based on economic principles, rather than the claims made by Ryanair. He added that almost every other EU country had such a regulator.