Mr William Prasifka, a member of the Competition Authority, has been appointed as the new aviation regulator by Minister for Public Enterprise, Ms O'Rourke, following an open competition conducted by the Civil Service Commission.
The regulator's functions will include: the contentious issue of the setting of landing charges at Irish airports - a point of conflict between Aer Rianta and Ryanair; the licensing of Irish airlines under EU regulations; and approving arrangements for ground handling services.
Mr Prasifka's remit will also include administering the travel trade protection scheme, through which travel agents and tour operators are licensed and bonded, and the allocation between airlines of airport landing and take-off slots at airports where demand exceeds availability.
Mr Prasifka, who will take up the position in the new year and oversee a small office, is currently serving as a member of the Competition Authority, and was previously a solicitor in a private practice in Dublin and New York.
The most contentious issue he is likely to face is a dispute between Ryanair and Aer Rianta over passenger landing fees at Dublin Airport. Ryanair has said it will pay Aer Rianta £12 million (€15.2 million) to develop a "low cost" terminal at the airport in return for an agreement to levy passenger landing fees of £1 per passenger. It has said this would have the potential to deliver one million additional tourists to the State each year.
While Ms O'Rourke has stated that she is not in favour of the proposal for a new terminal, the Tanaiste, Ms Harney, is known to support it.
The question of landing fees, however, will be for Mr Prasifka to decide.
Ryanair is unhappy that the landing fees it pays will increase from £4.09 to £8.18 per passenger next year.
Aer Rianta has said the fees are rising because Ryanair will not benefit from discount incentives, which are growth-related, due to a decline in the number of passengers carried by Ryanair through Dublin Airport.
Aer Rianta claims its landing fees have not increased since 1987.
Ms O'Rourke said the appointment of the regulator was in keeping with her strategy of maintaining competitive access costs to the Republic.
She wished Mr Prasifka well in the position. She said she was convinced that independent regulation was the best way to provide a level playing pitch for the many competing interests in Irish aviation.
The Government approved the creation of the post last June and the Minister hopes to have the necessary enabling legislation formally empowering the new regulator enacted in the new year.
Mr Prasifka has specialised in Irish and European competition law and US antitrust law. He has lectured widely in the areas of competition policy and the regulation of public utilities.
He is the third regulator to be appointed by Ms O'Rourke. She has already appointed Ms Etain Doyle as regulator for the telecommunications sector and Mr Tom Reeves to oversee the electricity industry. The Minister is currently working on a discussion paper on the operation of regulators for submission to Cabinet.