Ryanair appears to be going on the offensive after meetings with the EU Commission is intending to block the Ryanair buying Aer Lingus.
As you can guess, those over at Ryanair HQ aren’t impressed and are preparing to instruct their lawyers to go on the offensive if the takeover is denied by the EU Commission
Ryanair states
“It appears clear from this morning’s meeting, that no matter what remedies Ryanair offered, we were not going to get a fair hearing and were going to be prohibited regardless of competition rules.Given Ryanair’s remedies package clearly addresses every issue raised in the EU’s Statement of Objections, any decision to prohibit would be manifestly unfair and in contravention of EU competition rules. Ryanair has no alternative but to appeal any prohibition decision and we expect to get a fair hearing at the European Courts, as we haven’t received one from Commissioner Almunia and his case team. This decision is clearly a political one to meet the narrow, vested interests of the Irish Government and is not based on competition law.”
There have been 2 attempts so far by Ryanair to take over Aer Lingus – all of which have come to nothing.
Aer Lingus is owned by a number of companies and organisations:
- Ryanair – 29.4%
- Irish Government 25.4%
- Etihad 2.987%
- Others 42.213$%
Ryanair is trying to get the EU Commission on-side, by offering to give up Aer Lingus’s and Ryanair’s Gatwick base to IAG (Ownr of British Airways), and create FlyBe Ireland with FlyBe to take over 43 routes from Ireland. If this is enough to placitate the EU Commision – I’m unsure as the responses have been pretty negative so far in what the EU Commission sees as creating a single aviation monopoly in Ireland from Dublin Airport.
So it’s down to the EU Commission, and if they will approve the takeover or not. One way or another – a lot of lawyers are going to make a lot of money out of this as they pick over the bones of what is going to be a fight for Aer Lingus’s green shamrock.
“Ryanair has no alternative but to appeal any prohibition decision, and we expect to get a fair hearing at the European Courts.”
The European Commission has not formally announced the results of its investigation.
