Ryanair has lost its appeal against a UK regulator's ruling ordering it to sell most of its 29 per cent stake in rival Aer Lingus.
The UK's Competition Appeal Tribunal (CAT) today rejected the Irish airline's challenge to last year's Competition Commission ruling that its shareholding gives it material influence over Aer Lingus and should be cut to 5 per cent.
However, Ryanair said shortly afterwards that it has instructed its lawyers to challenge today’s decision in the UK Court of Appeal.
The airline’s chief executive, Michael O’Leary, already vowed last year to appeal any ruling requiring it to sell or reduce the stake.
Aer Lingus chairman, Colm Barrington, welcomed the ruling, saying: "Today's CAT judgment is a key milestone on the path toward removing Ryanair from the Aer Lingus share register."
Ryanair has also faced opposition from antitrust authorities in Europe after it first bought Aer Lingus shares as part of a takeover bid in 2006. Ryanair chief executive Michael O’Leary’s most recent offer for the smaller rival was blocked in February 2013 by the European Union, which ruled it would increase fares and reduce choice. A European court is scheduled to decide on whether the European Commission was right to block Ryanair’s last bid for its Irish competitor. (Additional reporting: Bloomberg)
