Ryanair faces a new legal hurdle if it wants to challenge Thursday’s ruling by a British court upholding a demand by the UK’s competition regulator that it cut its 29.8 per cent stake in rival Aer Lingus to 5 per cent.
The British Court of Appeal has upheld a UK Competition and Markets’ Authority (CMA) ruling that the airline should sell most of its shares in Aer Lingus, and has refused it permission to appeal that finding to the Supreme Court.
Its judgement means that Ryanair will have to go to the Supreme Court and ask it to hear the appeal, throwing a fresh legal obstacle in the way of the airline’s efforts to retain its holding in Aer Lingus.
Shortly after the court’s verdict, the airline confirmed that it intends to challenge this and has told its lawyers to appeal to the Supreme Court.
It is also requesting that the CMA carry out a formal review of its original ruling, which it made in 2013.
The latest stage in Ryanair’s legal battle to keep its stake in its rival Irish airline takes place against the background of a €1.36 billion takeover approach for Aer Lingus by International Consolidated Airlines’ Group (IAG), owner of British Airways and Iberia.
Ryanair’s spokesman, Robin Kiely, argued that the €2.55 a-share approach “totally undermines” the CMA’s claim that its ownership of close to 30 per cent of Aer Lingus deterred other airlines from bidding to buy the company.
“While we note the Court of Appeal’s ruling on the CMA’s final report on Ryanair’s 29 per cent stake in Aer Lingus, this judgment ignores the fact that the CMA’s final report was basaed on fanciful hypotheses, secretive ’evidence’ and unsubstantiated assumptions,” he said.
Speaking at a press conference to launch its Dublin winter schedule, Ryanair’s chief marketing officer, Kenny Jacobs, said that IAG has not discussed its Aer Lingus take over approach with the airline.
He added that the company’s board would consider any offer made for its Aer Lingus shares before making a decision.
The airline is the biggest shareholder in its rival, IAG’s approach values its shares at close to €400 million.
IAG has said that any offer it makes for Aer Lingus is conditional on getting acceptances from both the Ryanair and the State, which holds 25.1 per cent.
