RYANAIR CONDEMNS EU COMMISSION BIAS

RNS Number : 5369A

Ryanair Holdings PLC

30 March 2012

 



RYANAIR CONDEMNS EU COMMISSION BIAS AS BRUSSELS RUBBER-STAMPS BA'S TAKEOVER OF BMI, WHILE BLOCKING RYANAIR'S 2006 OFFER FOR AER LINGUS

Ryanair, Europe's favourite airline, today (30^th March) condemned the European Commission's discriminatory application of competition rules in the airline sector, as the EU Commission rubber-stamped IAG/BA's acquisition of BMI British Midland from Lufthansa, which further concentrates BA's power and control over the heavily congested London Heathrow slots.  BA/IAG's share of Heathrow slots will as a result of this rubber-stamped merger rise from 45% to some 55%.

Ryanair noted that this merger which has been approved in Phase 1 by the Commission, is yet another in the long list of EU flag carrier mergers which have been rubber-stamped and approved by the EU Commission.  These mergers involving BA/ Iberia/ BMI; Air France/KLM/Alitalia and Lufthansa/Austrian/Swiss/SN Brussels account for well over 50% of all EU passenger journeys.  Ryanair finds it remarkable that while every major flag carrier merger has been rubber-stamped by the EU Commission over the last 20 years, Ryanair's 2006 offer for Aer Lingus, an airline which accounts for less than 1% of EU air travel, is the only significant EU airline merger that was prohibited, yet a merger of Ryanair and Aer Lingus would account for less than 50% of Dublin Airport's current 35MPPA capacity.

Ryanair's Michael O'Leary said:

"Today's rubber-stamping of BA's purchase of BMI from Lufthansa, shows yet again that the EU Commission has one rule for Europe's flag carriers, but different rules for Ryanair.  While we have no objection to BA's acquisition of BMI, it will undoubtedly lead to higher fares and higher fuel surcharges, and give BA/IAG even greater control (over 55% of slots) at the heavily congested London-Heathrow.  It also exposes again, the Commission's discrimination against Ryanair in its 2006 prohibition of our offer for Aer Lingus, an airline which accounts for less than 1% of EU air travel and where Ryanair and Aer Lingus combined would have less than 50% of the total capacity at Dublin Airport, an airport which is now operating just over half of its available (35MPPA) capacity.

"While the European Commission was rushing through its rubber-stamping of BA's purchase of BMI British Midland, it has again failed to take any action to require illegal State Aid to be repaid by Europe's flag carriers including Air France, Alitalia, Malev and more recently Spanair. 

"Whether its state aid or merger policy, the European Commission clearly has a set of rules for flag carriers and a different set for Ryanair".

For further information please contact:                   

Stephen McNamara              Joe Carmody

                                                Ryanair Ltd                            Edelman

                                                Tel: [phone]              Tel. [phone]

 

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