Ryanair finalising appeal against UK watchdog’s Aer Lingus stake decision

Ryanair will formally lodge its appeal against the ruling by Britain’s Competition Commission — for it to lower its near 30% stake in Aer Lingus to just 5% — in the coming weeks, with the airline hoping for a quick reversal.

Speaking after the airline’s AGM yesterday, CEO Michael O’Leary said the appeal is being finalised and will hopefully be heard quickly, “and this ludicrous order will be reversed”.

Some commentators feel, however, an upheld ruling could usher in a long appeals process through the British courts. The UK Competition watchdog took its initial decision, citing a potential “substantial lessening” of competition on some routes, something which Ryanair was quick to disregard.

Mr O’Leary told reporters there exists “a lot of vested interests, around Europe, to limit the growth of Ryanair”, adding that the airline has commenced legal proceedings against Channel 4 — in light of last month’s documentary into alleged unsafe fuel policy — and expects the case to come before the Irish High Court “this side of Christmas”.

Despite, the company’s recent ‘profit warning’, Mr O’Leary said management was continuing to execute the growth story, calling the new 10-year deal with Stansted “transformational” in that it should reduce Ryanair’s airport charges in London and allow it to charge lower fares.

The airline will need to up passenger numbers, at Stansted, from 13m to 20m over the next 10 years, but Mr O’Leary said he thinks those numbers will be achieved quicker than that.

On other issues, Mr O’Leary said the company has not yet begun the search for a replacement for chief operating officer, Michael Cawley — who is due to remain on the board, but step down from his day-to- day position next March.

However, Mr O’Leary hinted Ryanair will fill the position internally.

Asked what he would like to see in next month’s budget, he said a complete removal of the travel tax would see Ryanair grow “significantly” in and out of Ireland.