EC Opens Investigation Into Aer Lingus Takeover

The European Commission (EC) has opened an in-depth investigation (phase II) under the EU Merger Regulation into the proposed acquisition of Aer Lingus by the low cost carrier Ryanair, which was notified to the Commission on 24 July 2012.

Both are major players in the Irish passenger air transport services market.

The Commission's preliminary investigation into the proposed takeover, which takes the form of a public offer, indicated potential competition concerns. Ryanair and Aer Lingus are the main operators out of Dublin airport. On a large number of European routes, mainly out of Ireland, the two airlines are each other's closest competitors and barriers to entry appear to be high. Many of these routes are currently only served by the two airlines. The takeover could therefore lead to the elimination of actual and potential competition on a large number of these routes.

The Commission will now investigate the proposed merger in-depth to determine whether these initial concerns are confirmed or not. The opening of this in-depth inquiry does not prejudge the result of the investigation.

The Commission now has 90 working days, until 14 January 2013, to take a decision on whether the proposed transaction would significantly impede effective competition in the European Economic Area (EEA).

(CD)