Ryanair has launched High Court proceedings aimed at compelling the Financial Services Regulator to investigate what the airline contends was the divulging of "inside information" by Aer Lingus to the Government ahead of other shareholders concerning the decision to transfer the Shannon-Heathrow link to Belfast.
Mr Justice Michael Peart yesterday gave Ryanair leave to challenge, by way of judicial review, the regulator's refusal to say whether it is investigating the alleged breach.
Ryanair says Aer Lingus chief executive Dermot Mannion had revealed on RTÉ radio that Minister for Transport Noel Dempsey had been informed of the Heathrow decision before that decision was publicly announced.
This action amounted to the disclosure of inside information to a shareholder, Ryanair claims. It said EU regulations specifically warn against such disclosures and the regulator is empowered to investigate the matter.
Under the Market Abuse Regulations, firms listed on the stock exchange are required to take reasonable care to disclose information in a synchronised way to all categories of investors, Ryanair chief executive Michael O'Leary said in an affidavit.
Mr O'Leary said the closure of a profitable route like Heathrow was price-sensitive. Revealing details about the ending of it "clearly constitutes 'inside information' as defined by the regulations", he said.
After the announcement, there was a significant amount of media interest in establishing when the Government first became aware that Shannon-Heathrow was being ended, he said.
On RTÉ radio on August 12th, Mr Mannion had said the Minister had been informed on August 3rd, he said.
"Ryanair immediately became concerned that Aer Lingus, by informing one large shareholder, ahead of other shareholders and the public, was in breach of its obligations under the regulations," Mr O'Leary said.
As a result, Ryanair's solicitors wrote to the Irish Financial Services Regulator, which replied such possible breaches of the regulations were investigated subject to the "efficient and effective use of our resources".
Mr Justice Peart granted leave for judicial review and returned the case for mention to next month.