Published on July 15th, 2018 | by Mark Dwyer0
EU Commission Approve 75% Ryanair stake in LaudaMotion
Ryanair have welcomed the EU Commission’s decision to approve Ryanair’s proposed acquisition of a 75% interest in Austrian airline, LaudaMotion. The airline currently has a stake of 24.9% in the company.
The Commission investigated the impact of the proposed transaction on the market for air transport of passengers on the routes from German, Austrian and Swiss airports to leisure destinations in the Mediterranean and Canary Islands, where the activities of Ryanair and LaudaMotion overlap.
The Commission also examined whether LaudaMotion’s portfolio of airport slots to be acquired by Ryanair at different airports would allow Ryanair to prevent competitors from entering or expanding their presence at these airports. Control over a large slot portfolio at congested airports can result in higher barriers to entry for airlines wanting to operate to and from these airports, which in turn could result in higher fares for passengers.
The Commission’s investigation found that:
- the increase in the slot portfolio of Ryanair is unlikely to have a negative effect on passengers, and
- Ryanair will continue to face strong competition from other carriers on the routes to and from airports where the activities of both airlines overlap.
The Commission therefore concluded that the proposed transaction would raise no competition concerns in any of the relevant markets.
Ryanair’s Chief Legal & Regulatory Officer, Juliusz Komorek said “We welcome the EU Commission’s decision to approve Ryanair’s proposed acquisition of a 75% interest in Laudamotion. Ryanair remains committed to bringing competition, choice and low fares to the Austrian, German and Spanish markets through our investment in Laudamotion.”