Ryanair may be forced to sell half its Aer Lingus shares
Budget airline's stake in former national carrier distorts market, say British regulators
Budget airline Ryanair may be forced by British regulators to sell off half of its stake in Aer Lingus, reports the Irish Independent.
This week the UK Competition Commission is expected to decide if the Ryanair's 29.8 percent stake in Aer Lingus distorts the market for flights between Ireland and Britain. With flights between the two countries run almost exclusively by the two airlines, it is expected the commission will force Michael O'Leary's firm to reduce its holding by half. The move would all but end Ryanair's chances of buying the former national carrier.
O'Leary has attempted to buy Aer Lingus three times already, but all three bids have been stopped by regulators on competition grounds.
Britain's Office of Fair Trading has previously said that the ownership structure could allow Ryanair to have "material influence over the commercial policy" of the former state-owned carrier. The Irish Independent reports that an an institutional shareholder in Aer Lingus told the commission earlier this month that Ryanair might be able to stop Aer Lingus from raising equity to fund new aircraft purchases if such a situation arose.
O'Leary has said he would appeal any order to sell any of his company's stake in Aer Lingus.
"I can't imagine they'll require us to sell all of the stake, but there'll be some partial sell-down," he said.
"That will expose them to a lot of legal issues."
However, Aer Lingus is likely to welcome such a decision from the commission, with its chief executive, Christoph Mueller, saying he wants to see Ryanair "off the shareholder register."
The Irish government, which has retained a quarter of Aer Lingus, also seems to be against a Ryanair takeover. Transport Minister Leo Varadkar expressed reservations after the airline's most recent bid for Aer Lingus.
- Gay wedding cakes latest target of anti-gay...
- Racist incidents in Ireland up by 85 percent...
- A Magdalene Laundry US adoptee who holds...
- An open letter in strong defence of capitalism.
- Irish radio presenter suspended after anti-Isra
- Nelson Mandela was against IRA decommissioning.
- Families as well as Catholic Church and governm
- Baby dies in horror birth at Belfast hospital...
- Gay teacher fired from Catholic school after...
- Sarah Palin is saving Christmas
I've dealt with these kind of people, typically evangelists / southern baptists /born agains To put it simply they believe that every word in the bibGay wedding cakes latest target of anti-gay bigots
I have to note Brian O's comment about the execution squads. This is a madness idea perpetrated by racists like beck, Limbaugh, tony perkins of theGay wedding cakes latest target of anti-gay bigots
I've dealt with these kind of people, typically evangelists / southern baptists /born agains To put it simply they believe that every word in the bibA Magdalene Laundry US adoptee who holds no hatred for Irish nuns
Cheez Phlutiphan, get thee to a therapist! As for the article, what is the point? I couldn't find one. Is it that this adoptee felt no loss because