Brussels, 29/08/2012 (Agence Europe) - On Wednesday 29 August, the European Commission opened an in-depth investigation into plans to acquire Aer Lingus by the low-cost airline Ryanair, which were notified to it on 24 July 2012. The two companies are leading players on the Irish market for passenger air transport services.
The Commission's preliminary investigation into the planned acquisition revealed potential problems of competition. Ryanair and Aer Lingus are the main operators of flights from Dublin airport. It stresses that on many European routes, mainly those departing from Ireland, the two companies are each other's most direct competitor. In addition, many of these routes are served only by these two companies. The acquisition may therefore, in the view of the guardian of the treaties, lead to the disappearance of any genuine or potential competition on many of these routes.
The Commission is now to carry out an in-depth examination of the planned merger to determine whether or not its initial fears are confirmed. It points out that the opening of an in-depth investigation in no way prejudges the outcome of the procedure. The Commission now has 90 working days (until 14 January 2013) to decide whether the planned operation would significantly hinder the exercise of effective competition within the European Economic Area.
Ryanair's first attempt to buy Aer Lingus was ruled against by the Commission in its decision of 27 June 2007 (see EUROPE 9456). This decision was upheld by the Court of Justice of the EU (ruling T-342/07) on 6 July 2010 (see EUROPE 10175). A second bid by Ryanair to buy Aer Lingus was notified to the Commission on 8 January 2009, but subsequently withdrawn.
The Commission notes that compared to the situation observed in 2007, when it adopted its decision, the number of routes on which both Ryanair and Aer Lingus operates has increased. (OL/transl.fl)