… You’ve guessed it – Ryanair.
The UK Competition commission has told Ryanair to reduce the stake it owns in Aer Lingus down to 5% from the current 29.8%.
The Competition Commission has released a report at http://www.competition-commission.org.uk/our-work/directory-of-all-inquiries/ryanair-aer-lingus, confirming its earlier findings that Ryanair’s holding in Aer Lingus could “substantially lessen” competition on routes between the UK and Ireland.
If you think Ryanair are remotely happy about this, you’re wrong. The full wounded statement on http://www.ryanair.com/en/news/ryanair-will-appeal-ukcc-report-on-7-year-old-aer-lingus-minority-stake, with the airline confirming it will appeal through the Competition Appeal Tribunal, with the Michael O’Leary stating:
“This report by the UKCC is bizarre and manifestly wrong but also entirely expected. From the first meeting with the UKCC it has been clear to us that Simon Polito’s and Roger Davis’ minds had been made up in advance and no truth or evidence was going to get in the way of their story. This prejudicial approach to an Irish airline is very disturbing, coming from an English government body that regards itself a model competition author”
Aer Lingus are seemingly happy about this, with its chairman – Colm Barrington stating:
“The Competition Commission should be commended on its thorough investigation.”
“It was unacceptable that our principal competitor was allowed to remain on our share register with a shareholding of 29.8% and interfere with our business despite the European Commission blocking both Ryanair’s first hostile takeover attempt six years ago and its most recent hostile takeover attempt earlier this year.”
Ryanair has attempted to take over its smaller rival for some years, with multiple attempts rebuffed through the European Commission.
Suffice to say – this is going to run as Ryanair squares up to the regulators once again.
