Ryanair has said that the European Commission plans to ban it from buying its Irish rival Aer Lingus.
The no-frills carrier disclosed that it had been told by the EC at a meeting today (February 12) that its hostile bid for Aer Lingus would be blocked on competition grounds.
Ryanair said that it would appeal to the European courts if the EC did block the takeover attempt and said it had already instructed its lawyers.
“The EU Commission intends to prohibit Ryanair's offer for Aer Lingus, despite the fact that Ryanair has met every competition concern raised in the EU's statement of objections and during the review process, including providing the EU - at its request - with irrevocable commitments from not one, but two, upfront buyers to eliminate all competitive overlaps between Ryanair and Aer Lingus,” said Ryanair in a statement.
“IAG has committed that they would take over divestments of Ryanair's and Aer Lingus' entire London Gatwick operations, and Flybe has committed to take over 43 Aer Lingus UK and European routes.”
The EC has not confirmed the decision and said it would be made later this month or in early March.
Ryanair spokesman Robin Kiely said: “It appears clear from this morning's meeting, that no matter what remedies Ryanair offered, we were not going to get a fair hearing and were going to be prohibited regardless of competition rules.”
If Ryanair is blocked from taking over Aer Lingus it will be the carrier’s third failed attempt to combine the two Irish carriers.
Aer Lingus said in a statement: "There was significant uncertainty that the offer from Ryanair was ever capable of completion. Ryanair's first attempt to take over Aer Lingus was prohibited in 2007 on competition grounds.
"Aer Lingus is a much stronger airline today than it was at the time of the previous Ryanair offers and is Ryanair's only significant competitor on the vast majority of Irish air routes. The number of routes into and out of Ireland on which Aer Lingus and Ryanair compete has sharply increased since 2007.
"The reasons for prohibition are therefore even stronger in this instance than with the previous offers. Therefore, it was and remains Aer Lingus' position that the offer should never have been made."
Flybe, which has reached agreement with Ryanair to set up a new division Flybe Ireland if the Aer Lingus purchase went ahead, said it was "disappointed by this news and will await the outcome of the appeal process".
"The proposed transaction with Ryanair to transfer a number of aircraft and operating routes to Flybe is contingent upon the EC's approval of Ryanair's proposed remedies and a successful bid by Ryanair for Aer Lingus," said Flybe in a statement.
"Flybe will continue to focus on the delivery of the cost reduction and efficiency plan announced on January 23, 2013."