Irish budget carrier Ryanair - the largest shareholder in rival Aer Lingus - is to appeal against the decision by competition authorities that it should reduce its stake in Aer Lingus.
Aer Lingus currently is the subject of a takeover bid by Spain-based IAG (parent of British Airways).
The UK's Competition and Markets Authority (CMA) had ordered Ryanair to reduce its 29.8 per cent stake in Aer Lingus to five per cent and now wants it to do so regardless of any IAG transaction.
'Ridiculous' decision
Simon Polito, chairman of the Ryanair/Aer Lingus inquiry group said: "IAG's bid for Aer Lingus is dependent on securing Ryanair's agreement to sell its shareholding. Ryanair (effectively) can decide whether a bid for its major competitor on UK/Irish routes succeeds or fails.
"IAG has said that it would not be interested in acquiring any airline with a significant minority investor.
"The conditional nature of IAG's bid is consistent with this and our original assessment that Ryanair's presence was likely to deter other airlines from entering into, pursuing or concluding combinations with Aer Lingus," he explained.
Ryanair's Robin Kiely responded that the decision was "ridiculous" and "flies in the face of the current IAG offer for Aer Lingus".
"IAG's current offer for Aer Lingus proves that the the CMA's invented theory was wrong." ...
Irish budget carrier Ryanair - the largest shareholder in rival Aer Lingus - is to appeal against the decision by competition authorities that it should reduce its stake in Aer Lingus.
Aer Lingus currently is the subject of a takeover bid by Spain-based IAG (parent of British Airways).
The UK's Competition and Markets Authority (CMA) had ordered Ryanair to reduce its 29.8 per cent stake in Aer Lingus to five per cent and now wants it to do so regardless of any IAG transaction.
'Ridiculous' decision
Simon Polito, chairman of the Ryanair/Aer Lingus inquiry group said: "IAG's bid for Aer Lingus is dependent on securing Ryanair's agreement to sell its shareholding. Ryanair (effectively) can decide whether a bid for its major competitor on UK/Irish routes succeeds or fails.
"IAG has said that it would not be interested in acquiring any airline with a significant minority investor.
"The conditional nature of IAG's bid is consistent with this and our original assessment that Ryanair's presence was likely to deter other airlines from entering into, pursuing or concluding combinations with Aer Lingus," he explained.
Ryanair's Robin Kiely responded that the decision was "ridiculous" and "flies in the face of the current IAG offer for Aer Lingus".
"IAG's current offer for Aer Lingus proves that the the CMA's invented theory was wrong." ...
