The European Commission (EC) has launched an in-depth investigation into Irish low-cost carrier Ryanair’s (FR) third takeover bid of Ireland’s national flag carrier Aer Lingus (EI), citing “potential competition concerns.
The EC said its preliminary investigation noted the two carriers were the main operators out of Dublin airport and that “on a large number of European routes, mainly out of Ireland, the two airlines are each other’s closest competitors.”
“Many of these routes are currently only served by the two airlines,” the EC said. “The takeover could therefore lead to the elimination of actual and potential competition on a large number of these routes.”
Dublin-based FR immediately said its offer to buy EI had lapsed, in accordance with takeover rules, and all shareholder acceptances of its offer to date were void. It said it would re-bid for EI if the EC cleared its offer following the investigation.
See the full article at Air Transport World