Consumers Association welcomes EU's Ryanair decision

Aer Lingus has welcomed the decision by the European Commission to block Ryanair's attempt to take over the State airline.

Aer Lingus said consumers have gained from competition between the two airlines and the EC made the right decision.

The Consumers Association has also welcomed the outcome, saying a Ryanair monopoly would result in the airline making more money and the travelling public getting less value.

Announcing the decision today, Competition Commissioner Neelie Kroes said a merger between the two companies would be a threat to consumer choice and a recipe for higher fares.

She said there is currently vigorous competition between the rival airlines, but a Ryanair buy-out would create a monopoly on the 35 routes they share.

Ryanair had promised to reduce fares if the takeover was approved, but Ms Kroes said this was not enough to address "competition concerns" given the airline's aggressive track record in trying to prevent rival carriers from entering the market.

Ryanair chief executive Michael O'Leary has already vowed to launch a legal challenge to the decision at the European Court in Luxembourg.