UK Court of Appeal rejects Ryanair’s challenge to the Competition Commission’s jurisdiction over Ryanair’s minority stake

Dublin & London, 13 December 2012: Aer Lingus Group plc (“Aer Lingus”) welcomes today’s decision by the UK Court of Appeal, rejecting Ryanair’s attempt to halt the UK Competition Commission’s investigation into Ryanair’s minority shareholding in Aer Lingus.

Ryanair had attempted to force a halt to the investigation in view of Ryanair’s renewed attempt to take over Aer Lingus: a third hostile takeover offer was announced on 19 June 2012, just a few days after the Competition Commission began its Inquiry. Ryanair’s arguments have now been rejected by the Competition Commission, the Competition Appeals Tribunal (which ruled on 8 August) and the Court of Appeal. The Court of Appeal has also refused Ryanair permission to appeal to the Supreme Court.

This decision represents the latest in an even longer line of judgments adverse to Ryanair in its attempts to derail the UK competition authorities from their review of the minority shareholding – Ryanair’s previous attempts to prevent the Office of Fair Trading from continuing its investigation also failed before the Competition Appeals Tribunal, the Court of Appeal, and the Supreme Court (which declined even to hear the appeal). On 15 June, the Office of Fair Trading then referred the review of Ryanair’s minority shareholding to the Competition Commission, concluding that “there is a realistic prospect that its stake has resulted or will result in a substantial lessening of competition.”

The European Commission is meanwhile continuing its examination of Ryanair’s takeover bid and recently served Ryanair with its formal Objections to the takeover.

Aer Lingus looks forward to continuing to assist the Competition Commission in its investigation into the anti-competitive effects of Ryanair’s minority shareholding.

Colm Barrington, Chairman of Aer Lingus, said: “Today’s appeal judgment is a key milestone on the path toward Ryanair being required to divest its shareholding in Aer Lingus.”