UK regulator says Ryanair must still reduce Aer Lingus stake

Ryanair has described as "manifestly wrong" the decision of British competition authorities that the airline must still reduce its stake in Aer Lingus to no more than 5 per cent.

The competition regulator ruled in April that Ryanair’s stake in Aer Lingus gave it too much control over its primary rival in Ireland.

“There is no material change in circumstances or special reason for it not to require Ryanair to reduce its shareholding,” the Competition and Markets Authority said in a statement today.

The CMA said it would ensure the ruling "interacts effectively," with the proposed takeover of Aer Lingus by British Airways owner IAG and any assessment off that bid by European regulators.

Ryanair said it would appeal the decision, which it described as “ridiculous” and “legally flawed”.

“Today’s CMA decision rejecting Ryanair’s request to review its order to divest Ryanair’s 29.8 per cent minority stake in Aer Lingus is manifestly wrong and flies in the face of the current IAG offer for Aer Lingus,” the airline said. “When the only basis for the CMA’s original divestment ruling was that Ryanair’s minority shareholding was or would prevent other airlines making an offer for Aer Lingus, the recent offers by IAG for Aer Lingus totally disprove and undermine the bogus theories and invented evidence on which the CMA based its untenable divestment ruling.”

The company said it was also seeking permission to appeal the 2013 report to the UK Supreme Court.

Additional reporting: Bloomberg