1. In-depth investigation opened by the Commission to the proposed acquisition of Aer Lingus by Ryanair

    published on Wednesday, August 29, 2012 under Internal Market

    The European Commission has started a phase II (in-depth investigation) under the EU Merger Regulation into the proposed acquisition of Aer Lingus by the low cost carrier Ryanair. The European Institution believes that the takeover could lead to the elimination of actual and potential competition on a large number of European routes.

    The European Commission has opened an in-depth investigation (phase II) under the EU Merger Regulation into the proposed acquisition of Aer Lingus by the low cost carrier Ryanair. The Commission's preliminary investigation into the proposed takeover, which was notified on 24 of July 2012, indicated potential competition concerns. Ryanair and Aer Lingus are the main operators out of Dublin airport. On a large number of European routes, mainly out of Ireland, the two airlines are each other's closest competitors and barriers to entry appear to be high. Many of these routes are currently only served by the two airlines. The takeover could therefore lead to the elimination of actual and potential competition on a large number of these routes.

    The Commission prohibited the first attempt by Ryanair to take over Aer Lingus in a decision adopted in 27 June 2007. The second attempt by Ryanair to take over Aer Lingus was notified to the Commission on 8 January 2009 and subsequently withdrawn. In comparison with the situation in 2007, when the Commission adopted its decision, the number of routes where both Ryanair and Aer Lingus operate has increased.

    The Commission now has 90 working days, until 14 January 2013, to take a decision on whether the proposed transaction would significantly impede effective competition in the European Economic Area (EEA). The opening of this in-depth inquiry does not prejudge the result of the investigation.

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