Aer Lingus today confirmed it plans to start legal proceedings against Ryanair in an attempt to force it to sell its shareholding in the company.
Aer Lingus chairman John Sharman said the airline would go to the European courts over the matter.
Ryanair owns a 29.4 per cent stake, making it the largest shareholder after the Government, but plans for an audacious €1 billion takeover have been blocked by the European Commission.
Aer Lingus said it would ask the European Court of First Instance for a ruling allowing the Commission to order Ryanair to sell its stake.
Mr Sharman said the only reason Ryanair bought up shares was to eventually secure full control.
"As the takeover has been barred, it follows that Ryanair's shareholding, built up for the purpose of mounting a takeover, should also be barred," he said. Aer Lingus said there are regulations in place allowing the commission to force Ryanair to sell up.
An application will be made to the court in the coming weeks.
Mr Sharman said it is also seeking an order to prevent Ryanair from interfering in the running of Aer Lingus pending its full judgment.
"We are fully prepared to face competitive opposition on the runways and despite its attempts to portray us otherwise, a strong, independent and competitive Aer Lingus is an issue for Ryanair, particularly out of Dublin," he said.
"Since this time last year, Ryanair has pursued every available tactic to prevent the further development of Aer Lingus as a competitive force, in order to defend its own patch out of Dublin."
PA