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Ryanair will have to cut 29.8pc Aer Lingus stake

PostPosted: Thu May 30, 2013 5:48 am
by Chestaan
For those of you who are unaware, Ryanair and Aer Lingus are two Irish airlines. Since 2006 onwards, Ryanair has been doing its best to buy a majority stake in Aer Lingus. But these attempts have been blocked by competition authorities which believe that such a merger would be detrimental to competition in the market.

http://www.telegraph.co.uk/finance/news ... ssion.html

The UK Competition Commission said the stake, built up during a failed takeover bid for Aer Lingus in 2006, gives Ryanair "the ability to influence the commercial policy and strategy" of its Irish rival.
It also prevents Aer Lingus from merging with another airline and could hinder it from issuing new shares or raising capital, the commission said.
The regulator on Thursday published the provisional findings of its investigation into the stake, with a full ruling due in July.
"Our provisional view is that Ryanair's shareholding is likely to weaken its main competitor on routes between Great Britain and the Republic of Ireland," said Simon Polito, deputy chairman of the Competition Commission.
"Whilst not giving it control over the day to day running of its rival, Ryanair's minority shareholding can influence the major strategic decisions that could be crucial to Aer Lingus's future as a competitive airline on these and other routes."


So should Ryanair be allowed to buy out Aer Lingus? Should things be left how they are, or do you agree with the Competition Commission?

I agree with the Competition Comission and think that Ryaniar should be limited in the percentage ownership of Aer Lingus it can own. Maybe less than 10% would be adequate. Allowing Ryanair to take over Aer Lingus would potentially destroy competition in the Irish airline industry and create near monopoly conditions.

PostPosted: Thu May 30, 2013 5:56 am
by L Ron Cupboard
I am confused as to why the UK Competition Commission has any say in regards to two Irish companies?

PostPosted: Thu May 30, 2013 5:58 am
by Chestaan
L Ron Cupboard wrote:I am confused as to why the UK Competition Commission has any say in regards to two Irish companies?


Most of the routes from Ireland to the UK go through these two airlines. I suppose there is an interest in the UK to keep the companies from merging as well as in Ireland.

PostPosted: Thu May 30, 2013 6:37 am
by Greed and Death
Chestaan wrote:
L Ron Cupboard wrote:I am confused as to why the UK Competition Commission has any say in regards to two Irish companies?


Most of the routes from Ireland to the UK go through these two airlines. I suppose there is an interest in the UK to keep the companies from merging as well as in Ireland.

So British imperialism.

PostPosted: Thu May 30, 2013 6:41 am
by Ifreann
Impeach Michael O'Leary.

PostPosted: Thu May 30, 2013 6:44 am
by Ovisterra
Ifreann wrote:Impeach Michael O'Leary.


I don't think anyone would complain.

Except O'Leary himself, of course, but that's all he does anyway.

PostPosted: Thu May 30, 2013 7:52 am
by Ifreann
Ovisterra wrote:
Ifreann wrote:Impeach Michael O'Leary.


I don't think anyone would complain.

Except O'Leary himself, of course, but that's all he does anyway.

Complain and market Ryanair at the same time, somehow.

But yeah, actually on topic, I'm cool with most anything that keeps Ryanair from running Aer Lingus into the ground.

PostPosted: Thu May 30, 2013 7:53 am
by Ovisterra
Ifreann wrote:
Ovisterra wrote:
I don't think anyone would complain.

Except O'Leary himself, of course, but that's all he does anyway.

Complain and market Ryanair at the same time, somehow.


We're still figuring that out. Modern science has yet to provide an explanation.

But yeah, actually on topic, I'm cool with most anything that keeps Ryanair from running Aer Lingus into the ground.


Oh god, can you imagine?

PostPosted: Thu May 30, 2013 7:56 am
by Ifreann
Ovisterra wrote:
Ifreann wrote:Complain and market Ryanair at the same time, somehow.


We're still figuring that out. Modern science has yet to provide an explanation.

But yeah, actually on topic, I'm cool with most anything that keeps Ryanair from running Aer Lingus into the ground.


Oh god, can you imagine?

All those mad ideas Ryanair comes out with to get a few headlines, I figure they'd actually make Aer Lingus do them.

PostPosted: Thu May 30, 2013 7:58 am
by Ovisterra
Ifreann wrote:
Ovisterra wrote:
We're still figuring that out. Modern science has yet to provide an explanation.



Oh god, can you imagine?

All those mad ideas Ryanair comes out with to get a few headlines, I figure they'd actually make Aer Lingus do them.


They'd use it as a testing ground to see exactly how bitchy an airline can be before people stop using it.

PostPosted: Thu May 30, 2013 8:50 am
by Diopolis
Ovisterra wrote:
Ifreann wrote:All those mad ideas Ryanair comes out with to get a few headlines, I figure they'd actually make Aer Lingus do them.


They'd use it as a testing ground to see exactly how bitchy an airline can be before people stop using it.

Now that is something I would pay to see...

PostPosted: Thu May 30, 2013 9:59 am
by Chestaan
Ifreann wrote:
Ovisterra wrote:
I don't think anyone would complain.

Except O'Leary himself, of course, but that's all he does anyway.

Complain and market Ryanair at the same time, somehow.

But yeah, actually on topic, I'm cool with most anything that keeps Ryanair from running Aer Lingus into the ground.


I can imagine there would be a charge for breathing/existing if Ryanair managed to merge with Aer Lingus.

PostPosted: Thu May 30, 2013 10:01 am
by Diopolis
Chestaan wrote:
Ifreann wrote:Complain and market Ryanair at the same time, somehow.

But yeah, actually on topic, I'm cool with most anything that keeps Ryanair from running Aer Lingus into the ground.


I can imagine there would be a charge for breathing/existing if Ryanair managed to merge with Aer Lingus.

You have to pay to use Ryanair gravity while on board the plane. *nods*

PostPosted: Thu May 30, 2013 10:04 am
by The Spiral Future
Something hurting Ryanair?

HAR!

PostPosted: Thu May 30, 2013 10:34 am
by Regnum Dominae
Isn't Ryanair the airline that removed all their lavatories from the planes?

PostPosted: Thu May 30, 2013 10:38 am
by Chestaan
Regnum Dominae wrote:Isn't Ryanair the airline that removed all their lavatories from the planes?


It wouldn't surprise me if they were. Honestly, they would do anything to cut corners. I know that at one point they were going to charge for use of the toilets.

PostPosted: Thu May 30, 2013 11:34 am
by Diopolis
Chestaan wrote:
Regnum Dominae wrote:Isn't Ryanair the airline that removed all their lavatories from the planes?


It wouldn't surprise me if they were. Honestly, they would do anything to cut corners. I know that at one point they were going to charge for use of the toilets.

That was a publicity stunt, like half the policies they unveil. Instead of buying adspace they unveil bizarre policies to get media attention.

PostPosted: Thu May 30, 2013 11:43 am
by Just About Anything
Diopolis wrote:
Chestaan wrote:
I can imagine there would be a charge for breathing/existing if Ryanair managed to merge with Aer Lingus.

You have to pay to use Ryanair gravity while on board the plane. *nods*

An extra charge for your luggage to go to the right destination.

PostPosted: Thu May 30, 2013 11:44 am
by Ifreann
Just About Anything wrote:
Diopolis wrote:You have to pay to use Ryanair gravity while on board the plane. *nods*

An extra charge for your luggage to go to the right destination.

You want the plane to land? That'll cost extra.

PostPosted: Thu May 30, 2013 11:46 am
by The Matthew Islands
Diopolis wrote:
Chestaan wrote:
It wouldn't surprise me if they were. Honestly, they would do anything to cut corners. I know that at one point they were going to charge for use of the toilets.

That was a publicity stunt, like half the policies they unveil. Instead of buying adspace they unveil bizarre policies to get media attention.

I never understood why people go so angry over Ryan Air saying stuff like, regardless of whether it was true. The whole point of their business model is low cost.

PostPosted: Thu May 30, 2013 11:56 am
by The Matthew Islands
L Ron Cupboard wrote:I am confused as to why the UK Competition Commission has any say in regards to two Irish companies?

Probably has something to do with EU/Uk rules and using UK airports or something. Or a way to stop Companies from taking advantage of a country, then going "Lol we're a *insert nation* company, can't touch this."

PostPosted: Thu May 30, 2013 12:06 pm
by Just About Anything
Ifreann wrote:
Just About Anything wrote:An extra charge for your luggage to go to the right destination.

You want the plane to land? That'll cost extra.

Engines on your plane? This is adding up pretty quickly.

PostPosted: Thu May 30, 2013 5:38 pm
by Charlotte Ryberg
L Ron Cupboard wrote:I am confused as to why the UK Competition Commission has any say in regards to two Irish companies?


Ryanair and Aer Lingus operate in the UK, but I anyway think that Ryanair is just dreadful cheap low value nonsense with too much backlash over hidden charges.

I just hope Aer Lingus doesn't copy them otherwise their reputation would go "urrr" and that'll be the end of that.

PostPosted: Thu May 30, 2013 6:42 pm
by Diopolis
Just About Anything wrote:
Ifreann wrote:You want the plane to land? That'll cost extra.

Engines on your plane? This is adding up pretty quickly.

You want the cabin pressurized? That's extra. Also: Relevant.