EU court spotlight shines on Ryanair Aer Lingus stake
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Aer Lingus has never known a day when its low-cost rival Ryanair has not been "banging on the door trying to interfere in its decisions", one of Europe's highest courts has been told.
The comments were made yesterday at the Luxembourg-based Court of First Instance by lawyers for Aer Lingus.
The airline is challenging a 2007 decision by the European Commission not to force Ryanair to sell its then 25pc stake in Aer Lingus.
A representative for the commission yesterday described Ryanair's attempted takeover of Aer Lingus as a "boardroom brawl" and said that it had no power to force the divestment.
Ryanair rejected the claims by Aer Lingus, saying in court that it has always acted lawfully with regard to its stake. Its legal representative, John Swift of Monckton Chambers, maintained that neither Aer Lingus, nor competition generally, had suffered as a result of Ryanair's stake in its rival.
Challenged
The accusations by Aer Lingus were made just a day after Ryanair challenged, in the same court, a decision by the commission in 2007 that deemed the airline's attempted takeover of Aer Lingus, if successful, would have had an adverse affect on consumers.
Alec Burnside of Linklaters, for Aer Lingus, claimed that the airline has been dogged by Ryanair since the first takeover bid commenced in 2006.
He labelled the commission's decision not to force Ryanair to sell its holding in Aer Lingus as "completely dysfunctional" at worst, and said the situation in relation to minority shareholdings was a "legal twilight zone".
It also emerged that Aer Lingus has approached authorities in the UK, Germany, and Ireland which would have powers to force Ryanair to sell its stake. However, Mr Burnside told the court that those agencies were "not interested".
A legal representative for the European Commission, Xavier Lewis, claimed the issue for the commission was not whether it wanted to be "involved in their boardroom brawl" but rather if it had the power to do so.
A ruling by the court is not expected for some time.
- John Mulligan
