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Brussels set to block Ryanair bid
"This is designed to appeal solely to the narrow vested interests of the Irish Government and ignore the benefits to millions of consumers" - Michael O'Leary
Brussels set to block Ryanair bid
12.45, Tue Jun 26 2007

Ryanair's outspoken boss Michael O'Leary has hit out at the European Commission which is expected to stop his low-cost airline taking over Ireland's national carrier Aer Lingus.

The attack came amid growing speculation that the ban will be announced by Brussels - the first time for 20 years that the Commission's competition authorities will have blocked a European airline merger.

Mr O'Leary, speaking in Brussels, said there was no justification for the "unprecedented" decision.

He said: "This is designed to appeal solely to the narrow vested interests of the Irish Government and ignore the benefits to millions of consumers."

His £1 billion offer for Aer Lingus immediately attracted a formal Commission monopolies inquiry amid concern about the development of a single dominant air carrier operating at Dublin Airport and stifling competition.

Mr O'Leary said the proposed takeover affected less than 5 per cent of the European airline market.

And he insisted he had already guaranteed massive savings for passengers of about £70 million per year in lower fares and fuel surcharges.

Mr O'Leary declared: "The Commission's decision to prohibit this merger between two EU airlines which between them represent just 5 per cent of European airline traffic is not just unprecedented but, in our view, unlawful.

"We call on the Commission to explain how it can rubber-stamp mergers between larger airlines such as Air France/KLM, Lufthansa/Swiss and Lufthansa/Austrian, when these airlines have bigger positions at their home airports than the combined Ryanair/Aer Lingus share at Dublin Airport."

Mr O'Leary said the Air France/KLM merger had resulted in significant fare increases - but Ryanair has offered unprecedented reductions which, he said, were guaranteed.

He accused the Commission of targeting Ryanair with a "unique" set of rules which did not mirror the Commission's approach to airline takeover cases for the last 20 years.


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