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30/05/2013
Ryanair 'May Have To Reduce Stake In Aer Lingus'
The UK Competition Commission has said Ryanair may have to reduce its stake in Aer Lingus.
The commission said it had concerns that the 29.8% stake Ryanair holds could reduce competition on routes between the UK and Ireland.
In provisional findings, a report said Ryanair's stake allowed the company to influence its Irish rival's strategy and was likely to "weaken its main competitor". It also said the stake could threaten to obstruct Aer Lingus's ability to merge with other airlines, and thereby allowing it to remain competitive.
Michael O'Leary, Chief Executive of Ryanair, described the commission's decision as "bizarre and manifestly wrong". He added that the findings were "unfounded" and "in breach of EU law".
The report is a further setback for the airline who has attempted to buy Aer Lingus on a number of occasions.
Using a February 2013 report by the European Commission, Mr O'Leary said found that competition between Ryanair and Aer Lingus had intensified since 2007.
He added: "While Ryanair is one of the UK’s largest airlines, Aer Lingus has a tiny presence in the UK, serving just six routes to the Republic of Ireland, a traffic base that has declined over the past 3 years and now accounts for less than 1% of all UK air traffic.
"This case, involving two Irish airlines where one (Aer Lingus) accounts for less than 1% of the UK’s total air traffic, is yet another enormous waste of UK taxpayer resources on a case which has little if any impact on UK consumers."
The Competition Commission's final decision is due in July, and Ryanair has said it would appeal if the decision remained unchanged.
(JP/CD)
The commission said it had concerns that the 29.8% stake Ryanair holds could reduce competition on routes between the UK and Ireland.
In provisional findings, a report said Ryanair's stake allowed the company to influence its Irish rival's strategy and was likely to "weaken its main competitor". It also said the stake could threaten to obstruct Aer Lingus's ability to merge with other airlines, and thereby allowing it to remain competitive.
Michael O'Leary, Chief Executive of Ryanair, described the commission's decision as "bizarre and manifestly wrong". He added that the findings were "unfounded" and "in breach of EU law".
The report is a further setback for the airline who has attempted to buy Aer Lingus on a number of occasions.
Using a February 2013 report by the European Commission, Mr O'Leary said found that competition between Ryanair and Aer Lingus had intensified since 2007.
He added: "While Ryanair is one of the UK’s largest airlines, Aer Lingus has a tiny presence in the UK, serving just six routes to the Republic of Ireland, a traffic base that has declined over the past 3 years and now accounts for less than 1% of all UK air traffic.
"This case, involving two Irish airlines where one (Aer Lingus) accounts for less than 1% of the UK’s total air traffic, is yet another enormous waste of UK taxpayer resources on a case which has little if any impact on UK consumers."
The Competition Commission's final decision is due in July, and Ryanair has said it would appeal if the decision remained unchanged.
(JP/CD)
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Aer Lingus Pilots Announce 48-Hour Strike
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Aer Lingus Pilots Announce 48-Hour Strike
Around 500 Aer Lingus pilots have announced plans to hold a 48-hour strike next week, in protest over plans to pay staff at the company's new Belfast operation less than those in the Irish Republic. The strike is due to be held next Tuesday and Wednesday and is expected to affect all the air routes run by Aer Lingus.
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Aer Lingus Boycott Considered By Councillors
Councillors in Limerick are meeting on Monday to discuss a formal boycott of Aer Lingus because of its controversial decision to transfer its Shannon to Heathrow service to its new hub in Belfast. The decision has sparked fears of jobs losses in Shannon as a result of the closure of the route.
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Jobs Fears For Shannon Following Aer Lingus Move To Belfast
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Irish Ministers Discuss Aer Lingus Issue
Aer Lingus' controversial decision to close its Shannon-Heathrow route has reportedly been discussed by the Cabinet at its first meeting since the Dail resumed after the summer break.
Irish Ministers Discuss Aer Lingus Issue
Aer Lingus' controversial decision to close its Shannon-Heathrow route has reportedly been discussed by the Cabinet at its first meeting since the Dail resumed after the summer break.
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