Tuesday, January 29, 2013
Ryanair Submits ‘Remedies Package’ to EU in Bid for Aer Lingus
Irish carrier Ryanair announced its submission of a “radical and unprecedented remedies package" to the European Union (EU) in support of its offer to acquire the government of Ireland’s 25 percent stake in Aer Lingus.
Ryanair currently has a 30 percent stake in Aer Lingus, and has tried unsuccessfully to acquire the government’s remaining share over the past several years.
EU launched an investigation into Ryanair’s latest offer for Aer Lingus last August, and scheduled a ruling for the end of January. That ruling has been delayed as the commission has raised objections to Ryanair’s bid concerning the impact it would have on maintaining competition for flights to and from Ireland.
“We believe these remedies address every current RyanairAer Lingus crossover route and all other competition issues raised by the Commission in its Statement of Objections. The remedies involve two upfront buyers each basing aircraft in Ireland to takeover and operate a substantial part of Aer Lingus’ existing route network and short-haul business,” said Ryanair CEO Michael O’Leary in a statement Monday.
O’Leary said he is confident that Ryanair’s offer for Aer Lingus will be complete in early March, subject to receiving approval from EU. More