KEY POINTS:
Ryanair's controversial £1 billion ($2.6 billion) bid for its rival Aer Lingus was blocked yesterday by EU watchdogs, who claimed it would reduce competition and force up fares.
The EU commissioner, Neelie Kroes, said the two airlines would control more than 80 per cent of European flights to and from Dublin airport, with a monopoly on 22 routes and a more than 60 per cent market share on 13 others. Other airlines would be unlikely to consider competing against such a dominant carrier, especially in view of Ryanair's record of aggressive retaliation against competitors.
"Any monopoly, even if advertised as low cost and low fare, is bad for consumers. The reality is that prices are higher and quality is lower when there is no competition," Kroes said.
Ryanair boss Michael O'Leary immediately announced an appeal to the European Court of First Instance.
"This is the first time the commission has prohibited a merger between two companies which, combined, will have less than 5 per cent of the EU market," O'Leary said.
- INDEPENDENT
