Ryanair and Aer Lingus
Making the right choice.
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Jasper Kelly Thursday 8 July 2010 |
Competition law is generally a good idea as it acts against monopolies and protects the public. I can see that a take-over of Aer Lingus by Ryanair would create a risk of a monopoly and give Ryanair too much power as the sole Irish carrier.
In normal circumstances, I would be banging the drum in support of the authorities and against Ryanair. But, these are not normal circumstances. Aer Lingus is a basket case and has been one for years. It is losing money, laying off staff and closing down routes. 
Michael O'Leary claims that it is only a matter of time before the Irish government asks him to mount a rescue and he would rather act now than wait until more damage is done. Of course, he would say that would he not but, on this occasion, I think he is right.
Aer Lingus has nowhere to go; it has no money and no medium or long-term strategy. It does not actually offer any viable competition to Ryanair and so allowing a Ryanair takeover will not damage the competitive status quo.
The European Commission has and probably will continue to block the acquisition. It is a textbook decision that would be right in most circumstances. Sadly, it is probably wrong in this case and will act against the public interest.
Ryanair already own a 30% stake in the company and are the only people likely to rescue the company. The time has come for the Irish government and the European Commission to consider the facts and make an informed decision.
Are they likely to do so? More than likely not, it would take a brave call and most politicians would reckon it not worth the risk.
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Andy Daniels, Dublin 12 July 2010, 11:02AM | |
| The EU are right to block the acquisition. I would rather see Ryanair and Aer Lingus fight each other until one of them goes down instead of merge into one big dominate carrier in the Ireland region. | |
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Eoghan 12 July 2010, 11:25AM | |
| I would hope that Aer Lingus remains an independant carrier, I fly with them very frequently and have done so for many years. I find their product to be 100% consistent. Flight attendants are always professional, and to be honest, amongst the friendliest I have come across on any airline. | |
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Jake Martin, London 13 July 2010, 05:30PM | |
| It seems that it's a takeover or go bust for Aer Lingus. The airline is losing money, laying off staff and closing down routes. I will be interested to see how the Irish government and European Commission react to this. | |
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