Ryanair v Aer Lingus - unrelenting

Whilst it tries to live up to its reputation as “The world’s most annoying airline” Ryanair says that it plans to pursue a takeover of Aer Lingus in spite of the UK Competition Commission rejecting the idea last week.  This follows a similar rebuff by the EU six months ago.

Ryanair said it would appeal against what it described as a "bizarre and manifestly wrong" decision in a legal process that could last for years.  Michael O’Leary’s argument is simple.  The British authority allowed the British Airways capture of bmi to go through which left only the Aberdeen and Edinburgh to Heathrow routes with competing airlines.  Similarly a Ryanair-owned Aer Lingus would leave little room for competition except on a very small number of prime routes.  Whether the independent Aer Arann would be left as an Aer Lingus franchise holder is obscure.

Appeals against both decisions mean that the Aer Lingus management is unlikely to quickly achieve its ambition of getting Ryanair off the company's share register and replace it with institutional investors or a strategic partner.  For Ryanair the continuing ‘warfare’ is costing little and is worrying a much smaller competitor.  It is proving expensive for the British taxpayer.  O’Leary gains huge media exposure for free. www.ryanair.com www.aerlingus.com www.competition-commission.org.uk

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