The investigation into Ryanair’s 29.8 per cent stake in Irish rival carrier Aer Lingus has been extended for eight weeks.
The UK’s Competition Commission had been due to submit a report on the impact of Ryanair’s shareholding in Aer Lingus by July 11. But this deadline has now been pushed back to September 5 although the final report is expected to be released in August.
Ryanair could be forced reduce its stake in Aer Lingus if the commission finds that the shareholding is reducing competition on UK-Ireland air routes. Ryanair’s third attempt to buy the rest of Aer Lingus was blocked by the European Union in February.
The commission has extended the period of investigation due to the “scope and complexity of the inquiry, the need to allow sufficient time to take full account of any comments received in response to its provisional findings and the need to consider the effectiveness and practicability of the range of possible remedies”.
Aer Lingus said it would continue to “assist the UK CC in the investigation into the anti-competitive effects of Ryanair's minority shareholding”.
Ryanair said that the extension showed that the commission's case was "falling apart".
Spokesman Robin Kiely added: "The commission has been forced to accept the EU's finding that competition between Ryanair and Aer Lingus has intensified over the last 6 ½ years to the benefit of consumers, yet it has failed to explain why it's investigating a 6 ½-year-old failed offer for Aer Lingus in circumstances where Aer Lingus accounts for less than 1 per cent of UK air traffic and affects very few, if any, UK consumers."