Ryanair and Aer Lingus: will the UK CC’s order bring down the curtain on this Irish farce?

Those who attended Aer Lingus' investor day in London in Sep-2011 will recall the drama of Christoph Mueller's physical response to Ryanair's CFO Howard Millar's questioning on a number of topics. The Aer Lingus CEO stood to face Mr Millar as he spoke, fixed him in the eye and slowly moved towards him until the two were almost brow to brow.

This confrontation serves as a metaphor for the relationship between Aer Lingus and its largest shareholder. The irresistible force meets the immovable object.

Now the UK's competition authorities have ordered Ryanair to sell its 30% stake, because its holding "had led or may be expected to lead to a substantial lessening of competition between the airlines … between Great Britain and Ireland". Ryanair's three bids for Aer Lingus were opposed by Aer Lingus, its employees, the Irish Government and the European Commission and consumed significant management time and effort. Rather than pursue it further, perhaps now it should cut its losses and concentrate on what it does best: beating competitors in the market place.