The new airports' regulator will also be charged with administering the travel trade's protection scheme under which travel agents and tour operators are licensed and bonded, it has been announced.

The regulator should be appointed by the end of the year. The primary task of the regulator will be to adjudicate on airport charges, an issue of serious confrontation between some of the airlines operating at Dublin Airport and Aer Rianta, the State's airport operator.

Announcing the proposed regulator's functions yesterday, the Minister for Public Enterprise, Ms O'Rourke, said she intended to have legislation enacted and the regulator appointed before the end of this year.

"Decisions on airport charges in particular, are needed in that timeframe, having regard to the differences between Aer Rianta and some of their customer airlines on that issue," she said.

The Minister said the regulator's functions would include approving arrangements for ground handling services at airports, and arranging for the allocation between airlines of airport landing and take-off slots at airports where demand for slots exceeds availability.

The move to appoint a regulator is seen as a precursor to a partial flotation of Aer Rianta.