BRITAIN’S COMPETITION Appeal Tribunal (CAT) yesterday threw out an appeal by Ryanair that would have blocked regulators investigating the budget carrier’s minority shareholding in Irish rival Aer Lingus.
Ryanair had argued it was not within the UK Competition Commission’s jurisdiction to investigate its 30 per cent stake in Aer Lingus. The CAT rejected this.
The failed appeal ran alongside a fresh takeover bid from Ryanair for Aer Lingus – made in June – as it continues to pursue the airline.
Britain’s Office of Fair Trading (OFT) previously ruled that Ryanair’s ownership of a minority stake in rival Aer Lingus threatened competition in the British airline market and asked the Competition Commission to consider sanctions. The commission, unlike the OFT, has the power to force Ryanair to divest its stake.
Ryanair mounted a public takeover for all of Aer Lingus in October 2006 but the European Commission investigated the bid and decided to prohibit the takeover in June 2007. The commission ruled, however, that Ryanair could not be forced to sell its stake, since Ryanair did not have de facto or de jure control of Aer Lingus.
Ryanair responded to the decision and said it had instructed its lawyers to appeal the ruling of the CAT. – (Reuters)