LONDON: Irish no-frills airline Ryanair must slash its almost 30-percent stake in rival Aer Lingus on grounds of unfair competition, a British watchdog ruled yesterday, confirming a preliminary ruling.
The Competition Commission (CC) has ordered Ryanair to cut its minority holding to just 5.0 percent.
The commission argued that the current situation has led to “substantial lessening of competition between the airlines on routes” between Britain and Ireland.
Ryanair said it would appeal against the decision, while Aer Lingus welcomed the CC ruling.
“In its final report published today, the CC confirmed its provisional findings that Ryanair’s minority shareholding had led or may be expected to lead to a substantial lessening of competition between the airlines on routes between Great Britain and Ireland,” the watchdog said in a statement.
“Ryanair Holdings plc will be required to sell its 29.8-percent stake in Aer Lingus Group plc down to five percent,” it added.
The CC additionally felt that the level of Ryanair’s stake was “likely to impede or prevent Aer Lingus from being acquired by, or combining with another airline”.
In February, the European Commission, the EU’s executive arm, had barred Ryanair’s third attempt since 2007 to take over Aer Lingus, citing concerns that the interests of passengers would be badly affected.
Aer Lingus in any case snubbed all of Ryanair’s takeover attempts, arguing that it was a strong stand-alone airline.
AFP
