Ryanair to appeal against ‘ridiculous’ decision over Aer Lingus stake

Ryanair has instructed its lawyers to appeal against today’s decision by competition authorities that the airline should still reduce its stake in Aer Lingus.

The Competition and Markets Authority is insisting there has been no material change in circumstances since its original decision in 2013.

It has therefore today published the final order requiring Ryanair to reduce its 29.8% stake in Aer Lingus to 5%.

Simon Polito, chairman of the Ryanair/Aer Lingus inquiry group, said: "IAG’s bid for Aer Lingus is dependent on securing Ryanair’s agreement to sell its shareholding. This recent development illustrates that Ryanair can decide whether a bid for its major competitor on UK/Irish routes succeeds or fails.

"This concern was an important part of our decision to require Ryanair to reduce its shareholding. It’s not good for competition when one company holds such an influence over the future of one of its major competitors.

"Although at this point Ryanair has yet to decide whether to sell its shares to IAG, we need to ensure that, whatever happens in relation to this particular transaction, Ryanair’s ability to hold sway over Aer Lingus is removed."

He said it was clear the timing of IAG’s bid has been influenced by the prospect of Ryanair being forced to sell the majority of its shareholding.

"IAG has said that it would not be interested in acquiring any airline with a significant minority investor. The conditional nature of IAG’s bid is consistent with this and our original assessment that Ryanair’s presence was likely to deter other airlines from entering into, pursuing or concluding combinations with Aer Lingus," he explained.

"In our view the circumstances of the IAG bid and other issues raised by Ryanair do not amount to a material change in circumstances or special reason not to take action to remedy the substantial lessening of competition identified in our 2013 report."

But Ryanair’s Robin Kiely said the decision was ‘ridiculous’ and ‘manifestly wrong and flies in the face of the current IAG offer for Aer Lingus’.

"When the only basis for the CMA’s original divestment ruling was that Ryanair’s minority shareholding was or would prevent other airlines making an offer for Aer Lingus, the recent offers by IAG for Aer Lingus totally disprove and undermine the bogus theories and invented evidence on which the CMA based its untenable divestment ruling," he said.

"IAG’s current offer for Aer Lingus proves that the the CMA’s invented theory of harm was hopelessly wrong, and is now unsustainable given that the circumstances have manifestly changed, and accordingly the divestment remedy must be revoked in light of this compelling evidence."

Ryanair has instructed its lawyers to appeal the decision to the Competition Appeal Tribunal.

The airline’s lawyers are also currently seeking permission to appeal the unsustainable 2013 report to the UK Supreme Court.