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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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