The European Commission has confirmed that Ryanair cannot be forced to sell its 29.44 per cent shareholding in Aer Lingus.
"In the view of the commission, it is unable under the EU merger regulation to require Ryanair to reduce its minority stake in Aer Lingus, essentially because this minority stake does not confer control," spokesman Jonathan Todd told a regular briefing.
Aer Lingus had asked Brussels to consider forcing Ryanair to reduce its stake.
The commission, which has the exclusive power to regulate large mergers in the EU, blocked Ryanair 's takeover bid for Aer Lingus in June, citing a threat to competition at Dublin airport, especially on routes to London.
At the time, the Brussels body said it believed it did not have the legal competence to order Ryanair to reduce its stake in Aer Lingus.
Ryanair has since bought a further 4 per cent of Aer Lingus to bring its total holding to 29.44 per cent, close to the 30 per cent threshold that would trigger an obligation to make an offer for the entire capital.
It has used its stake to try to force an extraordinary general meeting of shareholders to block plans by Aer Lingus to transfer valuable slots at London's Heathrow Airport from Shannon to Belfast.
It was reported in today's Irish Timesthat Aer Lingus is planning to make an application to the Court of First Instance appealing the commission's finding.