Thursday, February 28, 2013
Ryanair's third attempt at a takeover of Aer Lingus appears to have ended with much the same result as the first two: no deal. The European Commission announced this week that it was prohibiting the merger because of concerns that the takeover would reduce competition on the 46 routes on which the two carriers currently compete. Ryanair had proposed the rather novel remedy of providing cash, aircraft and routes to British airline Flybe to create competition on the routes worrying the Commission. But the Commission did not project Flybe to be an adequate competitor.