OFT re-opens investigation into Ryanair’s stake in Aer Lingus
The Office of Fair Trading has restarted its investigation into Ryanair’s minority stake in its rival Aer Lingus.
It said a decision is expected to be reached by October 26 about whether Ryanair’s 30% stake allows it to influence Aer Lingus’s commercial policy and impeed competition.
In a statement, Ryanair’s Stephen McNamara said: “We are surprised that the OFT continues to waste time and resources on a failed merger offer between two non-UK companies, some five years after the offer was withdrawn, and some four years after the EU Commission prohibited the original offer but confirmed that Ryanair had neither de jure nor de facto control over Aer Lingus.
“This OFT investigation sets a damaging precedent for future UK mergers, as it appears that the OFT now intends to second guess and become involved in mergers up to nine years after the transaction, only once all EU appeals have been completed.
“We believe that this investigation is out of time and we trust that the Court of Appeal will share our view and put an end to this unnecessary investigation.â€
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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