Jim Mason
2006-12-21 11:58:09 UTC
Ryanair News
---------------------------------------------------------------------------
-----
News Release
---------------------------------------------------------------------------
-----
20.12.06
RYANAIR REGRETS EUROPEAN COMMISSION DECISION TO REFER AER LINGUS TAKEOVER
OFFER TO PHASE TWO
BUT IS CONFIDENT THAT CONSUMERS AND COMPETITION WILL WIN IN THE END
Ryanair today (Wednesday, 20th December 2006) expressed its disappointment
at the European Commission’s decision to refer its offer for Aer Lingus to
a Phase II investigation. This further investigation could take between
three to five months, and Ryanair regrets this unnecessary delay and any
uncertainty it may cause for Aer Lingus shareholders and consumers who want
access to lower fares and better service.
Responding to the European Commission’s announcement today, Ryanair’s CEO,
Michael O’Leary, said:
“We are disappointed with the delay in the European Commission’s approval
of Ryanair’s offer for Aer Lingus. This could and should have been
decided in Phase I. We believe that this delay is unnecessary, for the
following reasons:
1. Ryanair does not accept the Commission’s claim that it did not
have sufficient time to consider our proposed remedies. The Commission
were able to market test Ryanair’s first set of proposed remedies within a
five working day period (Thur 30th Nov – Wed 6th Dec). The final list of
remedies was submitted to the Commission, at its request, five working days
(Thur 14th Dec to Wed 20th Dec) prior to the end of the Phase I deadline,
allowing a similar period of time for consideration and market testing.
We do not believe it is reasonable for the Commission to claim, that it did
not have sufficient time to market test these remedies.
2. Ryanair is aware that in previous airline consolidations the
final remedies were still being tested and negotiated between the airlines
and the European Commission the night before the decision was due. This
was particularly so in the case of the Air France-KLM merger.
3. This decision to refer the Ryanair-Aer Lingus takeover to a
Phase II investigation flies in the face of the European Commission’s
stated policy of encouraging consolidation amongst European airlines.
Given that much larger airline consolidations (most recently the Air
France-KLM merger) have been approved under the Phase I process, it is
difficult to understand the Commission’s failure to follow its own stated
strategy of promoting airline consolidation by granting Phase I approval in
this case.
4. The Commission’s decision in this case is inconsistent given
that the Air France-KLM merger was approved in Phase I while offering up
just over 120 slots at its main airports. By contrast, Ryanair offered
to surrender over four times more slots (over 500) of the combined
Ryanair/Aer Lingus slots, including valuable slots at London Heathrow, in
order to secure Phase I approval, yet the Commission has failed to follow
its own consolidation policy or the precedents set in the approved Air
France-KLM merger.
5. The Commission’s inconsistency in giving Phase I approval for
the Air France-KLM merger, which controlled 62% of the movements at Paris
Charles de Gaulle Airport, contrasts markedly with its failure to give
Phase I approval to the Ryanair-Aer Lingus deal which would, if successful,
have less (just 61%) of the movements at Dublin Airport. The Commission
appears to be applying different and totally inconsistent principles to the
Ryanair-Aer Lingus deal than it applied to the much larger Air France-KLM
deal, which was waved through with little difficulty in Phase I.
6. The commitments made by Ryanair in connection with this
takeover, which include, reducing Aer Lingus fares and fuel surcharges,
maintaining Aer Lingus as a separate stand alone airline and retaining its
brand, make this transaction a pro-competition, pro-consumer consolidation.
Given Ryanair’s commitment to reduce Aer Lingus’ short-haul fares by almost
10% over four years, there is no basis for the Commission’s claim that the
proposed acquisition “could give rise to higher fares than would be likely
if the two carriers remained separate”. The fact that Aer Lingus’ fares
will fall under Ryanair’s ownership would make this consolidation far more
consumer friendly than the phase I approved Air France-KLM merger which has
resulted in average fares and yields rising significantly in the eighteen
months since that merger.
“Nevertheless, Ryanair recognises the European Commission’s right to refer
this transaction to a Phase II investigation. This longer time period
will, we believe, allow the Commission to fully market test both the
transaction and the revised remedies, which Ryanair will propose.
Ryanair remains confident that its offer for Aer Lingus – which is
consistent with the Competition Commission’s stated policy on airline
consolidation - will win EU competition approval under the Phase II
procedure.
“We will continue to work closely with the European Commission to assist
them in their review of this transaction, which is in line with the
European Commission’s stated aim of encouraging consolidation amongst
European airlines. This merger also provides Aer Lingus with a secure
long term future as part of one strong Irish airline group, whereas, on its
own, we believe it is doomed to a bleak future as a small, regional, high
cost airline which recorded dismal financial results (including operating
losses) in the first half of 2006, and whose reported load factors have
declined significantly in recent months.
“Ryanair remains committed to acquiring Aer Lingus and will continue this
process to – what we believe will be - the successful conclusion of this
Phase II investigation”.
---------------------------------------------------------------------------
-----
News Release
---------------------------------------------------------------------------
-----
20.12.06
RYANAIR REGRETS EUROPEAN COMMISSION DECISION TO REFER AER LINGUS TAKEOVER
OFFER TO PHASE TWO
BUT IS CONFIDENT THAT CONSUMERS AND COMPETITION WILL WIN IN THE END
Ryanair today (Wednesday, 20th December 2006) expressed its disappointment
at the European Commission’s decision to refer its offer for Aer Lingus to
a Phase II investigation. This further investigation could take between
three to five months, and Ryanair regrets this unnecessary delay and any
uncertainty it may cause for Aer Lingus shareholders and consumers who want
access to lower fares and better service.
Responding to the European Commission’s announcement today, Ryanair’s CEO,
Michael O’Leary, said:
“We are disappointed with the delay in the European Commission’s approval
of Ryanair’s offer for Aer Lingus. This could and should have been
decided in Phase I. We believe that this delay is unnecessary, for the
following reasons:
1. Ryanair does not accept the Commission’s claim that it did not
have sufficient time to consider our proposed remedies. The Commission
were able to market test Ryanair’s first set of proposed remedies within a
five working day period (Thur 30th Nov – Wed 6th Dec). The final list of
remedies was submitted to the Commission, at its request, five working days
(Thur 14th Dec to Wed 20th Dec) prior to the end of the Phase I deadline,
allowing a similar period of time for consideration and market testing.
We do not believe it is reasonable for the Commission to claim, that it did
not have sufficient time to market test these remedies.
2. Ryanair is aware that in previous airline consolidations the
final remedies were still being tested and negotiated between the airlines
and the European Commission the night before the decision was due. This
was particularly so in the case of the Air France-KLM merger.
3. This decision to refer the Ryanair-Aer Lingus takeover to a
Phase II investigation flies in the face of the European Commission’s
stated policy of encouraging consolidation amongst European airlines.
Given that much larger airline consolidations (most recently the Air
France-KLM merger) have been approved under the Phase I process, it is
difficult to understand the Commission’s failure to follow its own stated
strategy of promoting airline consolidation by granting Phase I approval in
this case.
4. The Commission’s decision in this case is inconsistent given
that the Air France-KLM merger was approved in Phase I while offering up
just over 120 slots at its main airports. By contrast, Ryanair offered
to surrender over four times more slots (over 500) of the combined
Ryanair/Aer Lingus slots, including valuable slots at London Heathrow, in
order to secure Phase I approval, yet the Commission has failed to follow
its own consolidation policy or the precedents set in the approved Air
France-KLM merger.
5. The Commission’s inconsistency in giving Phase I approval for
the Air France-KLM merger, which controlled 62% of the movements at Paris
Charles de Gaulle Airport, contrasts markedly with its failure to give
Phase I approval to the Ryanair-Aer Lingus deal which would, if successful,
have less (just 61%) of the movements at Dublin Airport. The Commission
appears to be applying different and totally inconsistent principles to the
Ryanair-Aer Lingus deal than it applied to the much larger Air France-KLM
deal, which was waved through with little difficulty in Phase I.
6. The commitments made by Ryanair in connection with this
takeover, which include, reducing Aer Lingus fares and fuel surcharges,
maintaining Aer Lingus as a separate stand alone airline and retaining its
brand, make this transaction a pro-competition, pro-consumer consolidation.
Given Ryanair’s commitment to reduce Aer Lingus’ short-haul fares by almost
10% over four years, there is no basis for the Commission’s claim that the
proposed acquisition “could give rise to higher fares than would be likely
if the two carriers remained separate”. The fact that Aer Lingus’ fares
will fall under Ryanair’s ownership would make this consolidation far more
consumer friendly than the phase I approved Air France-KLM merger which has
resulted in average fares and yields rising significantly in the eighteen
months since that merger.
“Nevertheless, Ryanair recognises the European Commission’s right to refer
this transaction to a Phase II investigation. This longer time period
will, we believe, allow the Commission to fully market test both the
transaction and the revised remedies, which Ryanair will propose.
Ryanair remains confident that its offer for Aer Lingus – which is
consistent with the Competition Commission’s stated policy on airline
consolidation - will win EU competition approval under the Phase II
procedure.
“We will continue to work closely with the European Commission to assist
them in their review of this transaction, which is in line with the
European Commission’s stated aim of encouraging consolidation amongst
European airlines. This merger also provides Aer Lingus with a secure
long term future as part of one strong Irish airline group, whereas, on its
own, we believe it is doomed to a bleak future as a small, regional, high
cost airline which recorded dismal financial results (including operating
losses) in the first half of 2006, and whose reported load factors have
declined significantly in recent months.
“Ryanair remains committed to acquiring Aer Lingus and will continue this
process to – what we believe will be - the successful conclusion of this
Phase II investigation”.
--
Remove `spamtrapped` to reply off-list
http://jim-mason.fotopic.net/
Remove `spamtrapped` to reply off-list
http://jim-mason.fotopic.net/