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UK: As expected, Ryanair ordered to give up Aer Lingus

By  |  August 28, 2013

Following reports predicting budget airline Ryanair will soon be forced to surrender its stake in rival Aer Lingus, reports say the UK’s Competition Commission has done just that.

Despite a longstanding battle with authorities, Ryanair CEO Michael O’Leary will be required to divest his current 29.8 percent stake in the competing company down to no more than five percent. O’Leary responded to the decision by describing it as “very disturbing, coming from an English government body that regards itself a model competition authority.”

The forced divesture comes after three failed attempts by Ryanair to full acquire Aer Lingus. The Commission decided on the ruling because, it said, the ownership is a threat to competition. Aer Lingus reportedly welcomed the decision and described Ryanair’s previous stake as a “Trojan horse” for the company to strategize other bids.

Full Content: Bloomberg

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