OFT opens investigation into Ryanair’s stake in Aer Lingus
The Office of Fair Trading has launched an investigation into Ryanair’s minority stake in Aer Lingus.
It is investigating whether Ryanair’s stake of 29% gives it the power to influence its rival’s commercial policy and potentially hamper competition.
Ryanair issued a statement immediately, saying the investigation was too late and calling on the OFT to close the query.
“We have asked our lawyers to liaise directly with the OFT to bring this out of time and unnecessary query to an early conclusion,” said chief executive Michael O’Leary.
“Ryanair also calls on the OFT to close these queries without delay, and without wasting time or resources on what is clearly a non-existent issue over which the OFT clearly no longer has any jurisdiction.”
It said the OFT’s move “sets an alarming precedent for all current and future mergers involving non UK companies”.
Ryanair pointed out that both the EU Commission and (under appeal by Aer Lingus) the European Courts have already carried out detailed and extensive investigations into the shareholding, and have conclusively ruled that Ryanair lacks influence or control over Aer Lingus.
Aer Lingus said it welcomed the investigation and said it would cooperate fully with the OFT.
A decision is expected on December 24.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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