Minister for Transport Noel Dempsey has rejected a request from Ryanair to establish an independent appeals panel to review a recent decision on Dublin airport's passenger charges by aviation regulator Cathal Guiomard.

Earlier this year, Mr Guiomard decided against increasing charges before 2010 when the next price review is due. However he said charges in Dublin were likely to rise by 22 per cent to an average of €7.75 between 2010 and 2014 to help pay for Terminal 2 and related projects.

This angered Ryanair, which will not use T2 and argues that its passengers should not have to pay for the building.

Ryanair said the regulator had predetermined the outcome of the next review on airport charges for Dublin and requested that an independent appeals panel be set up. It is also pursuing a judicial review of the ruling.

"On foot of legal advice received by the Minister, Ryanair has been informed that the request for the establishment of an appeal panel cannot be granted, as the Commission for Aviation Regulation decision of 30th July, 2007, on the interim review of CAR's existing charges determination is not a determination against which an appeal can be made under section 40 of the Aviation Regulation Act 2001," the Department of Transport told The Irish Times.

A Ryanair spokesman said the decision was "just another means to protect the high costs and inefficiency at Dublin airport". The airline said it would pursue the matter legally.