Business ETC uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 16 °C Monday 20 May, 2013

Ryanair loses bid for Aer Lingus

The budget airline said it will appeal the decision.

Image: Niall Carson/PA Wire/Press Association Images

RYANAIR BELIEVES IT did not get a fair hearing in relation to its takeover bid for Aer Lingus.

The EU Commission told the airline that it intended to block its offer for its rival over competition concerns. Lawyers for the firm have now been instructed to appeal any prohibition to the European Courts.

Spokesperson Robin Kiely said the company’s remedies package, designed to assuage anti-competition fears, addressed every issue raised in the EU’s Statement of Objections.

“Ryanair has no alternative but to appeal any prohibition decision and we expect to get a fair hearing at the European Courts, as we haven’t received one from Commisisoner Almunia and his case team. This decision is clearly a political one to meet the narrow, vested interests of the Irish Government and is not based on competition law.”

Kiely drew comparisons between Ryanair’s offer and the recent IAG acquisition of BMI at London-Heathrow.

The Michael O’Leary-led firm had provided the EU with commitments from two upfront buyers – IAG and Flybe – to eliminate all competitive overlaps between Ryanair and Aer Lingus.

The company said it was being held “to a much higher standard” than any other EU airline, adding that its remedies package was unprecedented.

“For the first time in EU airline history, Ryanair delivered not one, but two, substantial upfront EU airline buyers who have agreed to come to Ireland to compete against a combined Ryanair/Aer Lingus.”

More: ‘Facebook account would not be helpful to us’ – Ryanair’s new spokesperson

Read: Ryanair loses ECJ case on reimbursing costs for stranded passengers

Read next:

Comments (92 Comments)

  • “For the first time in EU airline history, Ryanair delivered not one, but two, substantial upfront EU airline buyers who have agreed to come to Ireland to compete against a combined Ryanair/Aer Lingus..”…………………until when exactly, maybe until they get squeezed back out again, or go bankrupt trying to compete with Ryanair tactics.???
    Good decision.

    Reply
  • I’m delighted. I absolutely love flying with Aer Lingus. I remember arriving in to Dublin from New York for the All Ireland final and the air hostess came on and said good luck to all the supporters young and old arriving home for the All Ireland final. I hadn’t been home in 3 years. Made me very emotional. They have an edge of respect and niceness which is outstanding. I’ve decided to go home in june for another trip and they are by far the cheapest…. through their own website.

    Reply
  • O’Leary the man who is forever slagging off state monopolies now wants to create one for himself . We can’t forget what Ryanair done initially to make flying more affordable for many people, however since then the only thing “Budget” about Ryanair is it’s Customer service! Try booking a flight on any busy route and see how “budget” the prices are,if Aer Lingus was swallowed up we would be rightly screwed. Aer Lingus is now the largest flyer from Dublin Airport,O’Leary should ask himself how and why this happened.
    Ryanair tried to deprive the Irish from a quality low cost service that Aer Lingus provides and replace it with an Airline that is broke and offers a similar “service” to itself !

    Reply
  • Bloody delighted at news Aer Lingus should never be diluted and polluted by that crappy excuse of an airline

    Reply
  • Ryanair believes everything that goes against it is unfair. The amount of money it spends on litigation is unreal.

    Reply
    • Smiley . how much does Ryanair spend on litigation. seeing as though you know ,perhapsyou might share this valuable piece if info. Really want to know.

      Reply
    • Smiley 12/02/13 #

      Fair comment. No idea. However, it seems to me that every time the CEO hits the headlines he’s whingeing about something being unfair. There have been several examples of his going to court to avoid paying out for something the company’s required to, eg meals on delayed flights, accommodation when flights are cancelled for no apparent reason…

      Reply
    • John F 12/02/13 #

      Oh you mean like complaining how the airlines had to pick up the tab for disruptions caused by natural phenomonon such as the Icelandic Volcano. Do you think it was fair that the airlines were left out of pocket over this? Do you think Irish Rail would pay your hotel bill if you were stuck overnight in cork due to flooding on railways?? Dont think so!

      Reply
    • Smiley 12/02/13 #

      @JohnF. Maybe my memory is longer than yours. Many is the incidence of Ryanair complaining of unfairness when regulations are enforced. Don’t hear other airlines making complaints about same regs.

      Reply
    • Ok… Maybe a quick reality check as to why almost 80million people fly Ryanair every year. Quck comparison for return fares on destinations both Aer Lingus and Ryanair fly to from Dublin over St Patricks weekend (15th – 18th March)

      Dublin – Malaga
      Aer Lingus 363
      Ryanair 226

      Dublin – Manchester
      Aer Lingus 108
      Ryanair 76

      Dublin – Barcelona El Prat
      Aer Lingus 440
      Ryanair 172

      Dublin – London Gatwick
      Aer Lingus 109
      Ryanair 89

      Dublin – Madrid
      Aer Lingus 239
      Ryanair 193

      All flights are direct, prices as of today 15:50 – skyscanner.ie

      Both Airlines now offer an almost indistinguishable ‘no frills’ service on domestic European routes. Both charged for checked baggage and priority seats, neither offer free in-flight refreshments, both have a strict one bag per person carry on of 10kg max. Aer Lingus operate Airbus A320s on majority of their routes with 18″ Seat Width and 30″ Pitch and have an average fleet age of 7.4 Years.
      Ryanair operate a fleet of Boeing 737-800s standardized with 17″ Seat Width and 30″ Pitch and an average fleet age of 4.5 years.

      Reply
    • Fair play John, wait for the red thumbs though, people can be such hypocrites. They curse Michael o Leary but still fly Ryanair because of the low fares, makes me sick

      Reply
    • Smiley 12/02/13 #

      I think we can agree to differ. I am not prepared to be gouged for extras only to be treated like muck as on Ryanair. I travel roughly 20,000 km a year. Tried Ryanair twice and they were rubbish. Delayed flights, scrum for boarding, airports way out of town. Not for me thanks. I like to choose my seat, I like to be treated well by staff, I like to have reasonable luggage allowances. I don’t mind paying an extra €20 for the privilege.

      Reply
    • @John F

      Ryanair
      ————
      Customer service pre/during boarding
      General “Feel” onboard the plane (“TATAAAAAAAAGHHHHH Buy our crappy scratch cards to win”. “TATAAAAAAAAGHHHHH We are the best at timekeeping”)
      Tired and angry looking cabin crew
      15kgs checked in bags

      Aer Lingus
      ————–
      Not as great as it used to be, but still okay.. + 20kgs bags..

      I know who I fly with when I have the choice..

      Reply
    • Great response John f, the wan€ers with red thumbs don’t have a clue. Probably vote FF as well.

      Reply
    • @John F. Your price comparison exercise is exactly what I would do if I were heading away for St Patricks weekend.

      And you know what? I’d still fly Aer Lingus.

      Because AL still respect their passengers. Passengers who appreciate service keep them in business. AL know that. AL listen to the customer. Ryanair do not. AL have cornered that section of the market where quality, not stress, is required. AL are not anonymous or oblivious to their customers. Ryanair are. In fact, for Ryanair, the passenger is a revenue generating ‘item’, devoid of emotion or feeling. Some people don’t have an issue with that, presume you’re one, but I definitely do.

      Plus, I have kids. Why would I put them or myself through the torment.

      I have flown both carriers, and this is my informed decision. Cost is a factor, yes. But so is stress.

      I am a customer. I WANT THAT CHOICE!!! Dont need comparisons, can do that myself thanks.

      So for me, well done Europe!

      Reply
  • Ryanair – ever the victim!

    Reply
  • Great news! I’ll wait until the official EU verdict and even then Ryanair clearly isn’t going to give up but enough time and money has been wasted by both airlines because of O’Leary’s obvious desire to wipe out Aer Lingus (and Aer Arann in the process) and control the Irish market.

    Reply
    • Wake up the Irish market matters little 2 Ryanair they want a way into America

      Reply
    • Nellie, the Irish market is extremely important to Ryanair. After Stansted, Dublin is by far its’ busiest base with Dublin-London the busiest route in the Ryanair network by far.

      Why do you feel they need Aer Lingus ( and the Irish market you say that matters little to them ) to start flights to the US?

      Reply
    • I think you’ll find Joe that Charleroi is Ryanair’s busiest hub

      Reply
    • Not sure where you’re getting your info from Ciara, but Stansted is by far their busiest.
      Quick google search:
      http://www.anna.aero/2012/07/18/london-stansted-now-serving-over-150-destinations-as-ryanair-continues-to-grow-network/

      Reply
    • The Irish market counts for 6 % and decreasing amount of Ryanair business the market has decided that are national carrier has little future as is. Look at its share price stagnant .
      Is o Leary the nicest man on the planet he goes out of his way to annoy people. But he not the devil and pays more tax in thus country than he needs to he Chan air travel for ever. Selling airlinglus to him will make airlinglus a bigger and better airline

      Reply
    • I am not prepared to be gouged for extras – is that “extras” like food? Choosing the biggest seat etc ?

      only to be treated like muck as on Ryanair.- I’ve never been treated like muck. I’ve flown at least 200 times with Ryanair

      Delayed flights – Nonsense, they have the best on time record of any airline in Europe. As often as not they are EARLY.

      scrum for boarding – no scrum ever. If you don’t want to q, then sit down until the q is gone.

      airports way out of town. – can be an advantage. In Beauvis you get out in minutes. Stansted is as far from London as Gatwick.

      I like to choose my seat – available on Ryanair or simply pay a miserable €5 to get on first.

      I like to be treated well by staff – Ryanair staff are as good as Aer Lingus staff

      I like to have reasonable luggage allowances – they are both the same, Ryanair are more strict. But they have told you that.

      I don’t mind paying an extra €20 for the privilege – from the list above it’s far more than that. I fly both, depends on various factors.

      Reply
    • Nellie I’m not sure you know what you’re saying there? Ryanair and Aer Lingus have over 80% of the market share from Ireland between them, Aer Lingus is very profitable and giving Ryanair a run for their money, Aer Lingus is gaining market share from Ryanair and that’s why ultimately Ryanair want to own Aer Lingus. I don’t call scrapping half of the Aer Lingus routes “building one huge Irish airline”. Ryanair wants rid of their viable competitor, simple as that.

      Reply
    • Couldn’t agree more, I fly to the UK every week with Ryanair and in the last year I have only been delayed twice and and never more than an hour. I am effectively able to commute to the UK for c. €50 per week – try doing that with Aerlingus!!!! I really don’t understand why people bitch and moan about Ryanair, they are seriously cheap and virtually always on time!

      Reply
    • Ryanair don’t have the planes us slots it’s a way in to the us

      Reply
  • Good decision.

    Where it to happen, over years it would be bad for competition to / from Ireland.

    Also, the monopoly would be so strong it would be very hard for any new entrant to enter the market.

    Reply
  • Ryanair are runing to the European courts after saying they was out of touch a few weeks ago.What goes around and all that.

    Reply
  • Well done Europe, you made the right decision! Competition is best!

    Reply
  • Does Ryan air give its customers a fair hearing when they make a complaint?

    Reply
  • It’s completely fair. While Ryanair did address the issues in the Statement of Objections, they did so by essentially creating a front company. Flybe, which is in serious financial debt, would become a Ryanair subsidary. I hope Europe will stand up to them again.

    Reply
    • So what exactly do you mean by a front company? Do you actually mean that Ryanair put forward a deal that was accepted by 64% of Flybe’s shareholders? As for Flybe being in serious financial debt, £50m on a turnover of £340m is not out of kilter with the sector. This Commission decision is wholly political and Ryanair have a right to be aggrieved. If a major carrier like British Airways can’t go it alone in this climate, it’s fair to say Aer Lingus’ days are numbered and all this obfuscation is just dog-in-the-manger carry-on. The fact is Ryanair are being penalised precisely because they are competitive. Some people clearly have a soggy sentimental attachment to overpriced shamrock decals because I’ve seen no evidence – in a quarter century of flying – that the National carrier is worth saving.

      Reply
    • “if a major carrier like BA can’t go it alone”???

      I’m not sure what you mean by this, BA bought out the basket case that was Bmi to get their route network and LHR slots. They then joined with Iberia as IAG, BA however are very definitely in the driving seat. its a takeover by another name. But at least BA aren’t going to try to kill off Iberia, unlike the FR plans for EI.

      Just to clarify…..FlyBe Ireland was the front company. Ryanair were guaranteeing in them E20M profits each year for 3 years…..on top of the E100M startup cash. Thats’ a funny way to deal with a ‘competitor’!!

      Reply
    • ISBA 13/02/13 #

      Sorry Sean, your views are somewhat skewed and difficult by any standard to equate with consumer welfare. Ryanair, Flybe and British Airways were all in on the carve up – they actually boasted about it in the run up to today. The forthcoming Commission Decision represents a significant milestone for consumers. The UK Competition Commission are also opposing the purchase of an almost 30% stake that Ryanair now holds in Aer Lingus. Where has Ireland’s Competition Authority been? We might draw your attention to the Irish Competition Authority’s Mission Statement:- “to ensure that competition works well for consumers and the Irish Economy”. Odd that our own regulator has had little or nothing to say on a competition issue with huge reverberations for Irish business and final consumers alike. Follow our views on Twitter.

      Reply
  • @peter well here we go. The support O’Leary brigade. Ryanair would not be there if it was not .for a government that gave it cash to survive and took routes off aer lingus. So much for your capitalist free market. O’Leary and his gang would rip the soul out of an Irish institution that at least employes workers direct and pays decent pay. If all the employers were parasites like this company then the world would be a poor place.its fantastic news for Ireland, workers, competition and for decency. Ryanair could be a good company, successful and at the same time treat workers fairly and treat their customers with a little more respect then I would have no problem supporting them. O’Leary should now resign

    Reply
  • Fantastic news! I’m glad O’Leary can’t pick our national airline apart!

    Reply
  • Ryanairs biggest problem is O’Leary, motormouth ass that he is. I will fly with anyone except Ryanair.

    Reply
  • Paul 12/02/13 #

    He might have a better chance of being the next Pope, methinks

    Reply
  • Brilliant news. O’Leary won’t get his hands on a decent airline. Thanks EU at least you got this one right.

    Reply
  • Give it up Mick

    Reply
  • Looks like I picked the wrong day to quit amphetamines.

    Reply
  • What about O’Leary for pope?? Although he already thinks he’s a God so the pope position will probably be beneath him.

    Reply
  • It’s good news. If Ryanair were allowed to buy Aer Lingus they would increase travel prices significantly to the detriment of the Irish Tourist Industry. The EU Court did us a favour!

    Reply
  • Sean are you one those people who gives out about Ryanair and then flys with them?

    Reply
  • Thank God !!

    Reply
  • It is more expensive to fly from Bristol to Cork, then from Bristol to Lanzarote.

    Reply
  • Say what you like about O Leary but at least he’s brought competition to the market. You can get to the UK for next to nothing by air compared to traveling by sea.

    Reply
    • Ryanair didn’t bring about low fares. Deregulation did. If we didn’t have Ryanair in Ireland we would have Easy Jet and others. They all embraced the low fares model at the same time.
      Anybody who seriously thinks if it wasn’t for Ryanair we would be paying €300 to fly to London has been intellectually short changed.

      Reply
    • Dave 12/02/13 #

      Ryanair have charged me 300 euro one way to get to Stansted in the past.

      Reply
    • Smiley 12/02/13 #

      As long as you don’t mind being treated abysmally. When you compare prices, after Ryanair have charged all their extras, the difference is so slight as to be worth travelling on Aer Lingus for its service alone.

      Reply
    • Dave, as of 16:45, it’s €200 to fly Cork-LHR today. All airlines charge heavily for last minute flights. However I’ve flown with Ryanair to STN for as little as €60 booking the previous day.

      Reply
  • On RTE news and Sky news the headline reads. ‘Ryanair says the EU intends to block the Aer Lingus takeover’.
    Nowhere else have I read that this decision has been taken, except here.

    Reply
  • Another factually incorrect headline from the Journal. Thus has not been confirmed by the EU.
    ONLY Ryanair have said the EU intends to block the take over.
    The headline in inaccurate and not yet confirmed. It may yet be true but it is not at this stage.
    Journal comment?

    Reply
  • Typical Irish mentality, MOL is whatever name you want to call him because he is successful, like it or not we have better airline prices all over Europe because of Ryanair. How many airlines now follow there example when booking a flight? Where is the competition, look at Ryanair figures and aer lingus figures, no one can say that’s competition. Ryanair is another success story from Ireland and all some people want to do is give out and moan about it, that’s the Irish way.

    Reply
    • Wrong. We have lower fares because of deregulation. Do you really think if Ryanair didn’t come along we would still be paying huge fares to Europe?
      Do you really believe that?
      Do you really believe that if Ryanair had a monopoly they wouldn’t abuse it?
      Tell that the Munster fans who bought cheap flights to the Heineken Cup final a few years ago in anticipation of making the final. When they did and Ryanair realises they lost out in a killing they cancelled the flight and gave refunds only to put the flight back on at much higher prices. I sometimes despair at how naive the public are.
      Perhaps that explains why Fianna Fáil are the most popular party in the country again. Heaven save us. Some people shouldn’t have a vote.

      Reply
    • Sean, it was only an opinion. But Jesus relax yourself. pull back the curtains open the windows let some air in, there’s life outside no need to be so bitter all the time, post something positive will do you good

      Reply
    • I’m positive but also realistic.
      If this country had a bit more reality we would have realised property prices wouldn’t go up for ever. Ok, this us just a discussion forum and we all have our opinions. There is something seriously worrying when Fianna Fáil are the most popular party in the country a few years after bankrupting the place.
      Getting back to Ryanair. How about the case of the Munster fans? Is this what we want? You buy a ticket to travel and when they realise they can sell it for more they throw the money back at you and sell it for more.
      I wouldn’t let O’Leary run anything.
      He is capable but I wouldn’t trust him for 1 minute.
      You applaud him if you wish.
      I don’t.

      Reply
    • Have to agree there Sean..

      Tried something somewhat similar myself.
      Had a flight booked for 6 months going on holidays. Taken the days off and booked hotel etc etc.
      6 days before the flight got an email telling me that the route had been cancelled and here is my refund.
      Made a promise that day to never fly Ryanair again.

      Reply
  • Try and book a flight to Tenerife over the summer with the almighty aer lingus and see what you get. Don’t bother because you can’t. Aer lingus don’t fly there during the summer. Imagine that. Ryanair fly there all year round like an airline should.

    Reply
  • Sean you also said “Another factually incorrect statement from the journal” if the journal has so many incorrect statements why do you keep coming back? Is it because you like to stir it. Or maybe because your unemployable and you have nothing better to do.

    Explain
    Comment

    Reply
  • sean 12/02/13 #

    I’m still unsure…
    Anybody think that it could actually benefit the Irish economy?

    Playing devils advocate:-
    •More tax paid in Ireland based on profits from the whole of its operations.
    •Substantially lower fairs outside of Europe.
    •More tourism, not just to Ireland but Europe as a whole.
    •More job creation for flight crew and in servicing the raft of new aircraft Ryanair would no doubt purchase.
    That’s just a few of the potential benefits and what ever Mr O’Learys motives the one thing you can’t deny is he’s a supporter of keeping things Irish.
    I think the Irish Gov could play a blinder on this if they acted like a business. They could draw up an investment plan for Ryanair to support local airports e.g. Cork or Waterford. The Gov could make this part of any deal over say 10 years. It would certainly benefit the south-east which desperately needs it.
    I think though Ryanair is suffering from the boy who cried wolf syndrome. Time to realize Mr O’leary that there is such a thing as bad advertising.

    Just a thought..

    Reply
    • Nice idea Sean but a bit naive…….Ryanair will not allow themselves to be tied into a 10 yer deal on serviced Irish regional airports.

      -EI already pay their tax in Ireland, so shaving off 50% of their routes to FlyBe defeats the irish focus.
      -EI employ Irish staff at more than minimum wage. FR employ staff from all over Europe who do not neccisarily put their cash back into the Irish economy.
      -Ryanair have gradually scaled back their Irish operation in favour of pan-European expansion. EI are completly tied to the Irish market.

      Reply
    • sean 12/02/13 #

      Why not, you don’t know that as the Governments position is to ignore any proposal by FR. If they’re offering €100 million and 9 aircraft in sweeteners to other airlines then there is plenty more in the pot for dealing. Naive… A little harsh Jonathan, I think, when I’m only trying to balance a clearly one sided debate. Also the Government has made it clear that they’ll sell their shares in EI to anyone except FR which is, well, naive of the Government and any potential tax income may ultimately leave Ireland and be paid into another European jurisdiction. BTW Flybe Ireland would pay corporation tax in Ireland not the UK.
      EI have only just returned to profit so have paid no tax for many years.
      Staff wise I understand what you’re saying but FR run more planes on existing routes so more planes, more staff, more ground crew, more service staff etc etc and a smart government could facilitate some of this in Ireland. Rather than block successful tax paying businesses – embrace and support them.
      Maybe a different route would be a share deal for Ireland PLC in FR.
      Just throwing it out there…

      Reply
  • Better chance if Ryanair found someone who didn’t pose someone off everyday no matter how right or wrong he is. Ryanair makes nobody fly with them other airlines prices do

    Reply
  • Sean I said “are you” what else can that mean? Explain

    Reply
  • The EU have just confirmed that NO decision has been made on the matter.
    See RTE…..

    Reply
  • Aleo48 12/02/13 #

    Breaking News: Vatican proclaims itself an air exclusion zone.

    Reply

Add New Comment