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Ryanair’s tenacious quest to acquire Aer Lingus matches the EC’s equally tenacious drive to probe

Analysis

Calvin Coolidge believed that "persistence and determination alone are omnipotent". However it is doubtful that the wisdom of the 30th US President is applicable to Ryanair's attempts to take over its smaller rival Aer Lingus. The European Commission (EC) on 29-Aug-2012 confirmed what was widely expected and opened an in-depth investigation into Ryanair's latest offer to acquire control of Aer Lingus.

The European Union's competition authority said that its preliminary probe into the proposed takeover had indicated potential competition concerns as Ryanair and Aer Lingus are "each other's closest competitor" on a large number of European routes, mainly out of Ireland, and many of these routes are currently only served by the two airlines. The "barriers to entry appear to be high," the EC said, concluding that the takeover could therefore lead "to the elimination of actual and potential competition on a large number of these routes".

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