The proposed takeover of the Irish flag carrier Aer Lingus by Ryanair has been prohibited by the Commission
The European Commission announced the prohibition, on the basis of the EU Merger Regulation, of the proposed takeover of the Irish flag carrier Aer Lingus by the low-cost airline Ryanair. The Commission concluded that the merger would have harmed consumers by creating a monopoly or a dominant position on 46 routes where, currently, Aer Lingus and Ryanair compete vigorously against each other.
The low-cost airline Ryanair and the Irish flag carrier Aer Lingus are by far the most important carriers operating out of Ireland. They compete directly on 46 routes. The European Commission has now prohibited, on the basis of the EU Merger Regulation, the proposed takeover Aer Lingus by Ryanair. According to the Commission, the merger would have harmed consumers by creating a monopoly or a dominant position on the mentioned 46 routes.
During the investigation, Ryanair offered remedies. The Commission stressed that it assessed them thoroughly and carried out several market tests as announced in August 2012. However the remedies proposed fell short of addressing the competition concerns raised by the Commission. It was the third time that the proposed acquisition of Aer Lingus by Ryanair was notified to the Commission. In 2007 the Commission prohibited Ryanair's first attempt to acquire Aer Lingus and this decision was upheld by the EU General Court. In 2009, the second notification by Ryanair was withdrawn.
The Commission also highlighted that during the investigation it gathered views from a large number of market participants in Ireland and internationally, including competitors, customers, travel agents, consumer associations, public authorities and airport operators. The Commission carried out such market tests on Ryanair's successive remedy proposals three times.