Ryanair finale?

EU regulators will finally decide next week on Ryanair's third, and one would think final, attempt to take over Aer Lingus.  Ryanair may own 37% of the carrier, but its efforts to gain a majority have always been thwarted.

The EU Competition Commissioner Joaquin Almunia has confirmed that the decision day as Wednesday 27 February.  If it were to be an OK it will unleash a chain of airline route and operator changes unheralded in recent times and take five years to be fully implemented.  Ryanair has itself said that it expects the bid to be turned down, but it might appeal (if allowed to do so).

A veto would be Almunia's fourth rejection of a proposed merger in three years.  Last month he blocked plans by package delivery company UPS to acquire Dutch rival TNT Express.

Ryanair had offered to pay €100m (US$132m), transfer nine aircraft and cede 43 routes to strengthen British rival Flybe in a bid to secure EU regulatory approval.

The proposal includes setting up Flybe Ireland with Ryanair providing forward sales cash accepting liabilities worth around €50m.  However Aer Lingus slot ownership at Heathrow is complicated and the deal could involve Ryanair giving up Aer Lingus' routes at Gatwick to British Airways. www.ryanair.com

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