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Topic: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: Braybuddy
Posted 2013-02-27 03:51:34 and read 5408 times.

EU antitrust regulator blocks Ryanair's bid for Aer Lingus, claiming that it could hurt competition and lead to higher prices.

http://www.rte.ie/news/2013/0227/369827-aer-lingus-ryanair/

Phew! A no-brainer if ever there was one . . .

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: Bongodog1964
Posted 2013-02-27 04:11:16 and read 5317 times.

I'm sure that Michael O'Leary knows that any attempt to take over Aer Lingus is doomed to failure on competition grounds, his business brain however is telling him that the costs of making repeated bids are far outweighed by the value of the publicity Ryanair receives each time. There can be very few people now in Ireland who are not aware that "low fares Ryanair works in the interests of the passengers, whilst the bloated high fares Aer Lingus only works in the interests of its staff and shareholders" Well in Mr O'Leary's eyes anyway.

The danger in this approach is that there may be a time when the major shareholders of Ryanair decide that their chief executives is spending too much time pointlessly bashing Aer Lingus when his time could be more usefully utlised on other matters.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-27 04:15:36 and read 5299 times.

You beat me to it by a minute  

In any case, here's the official press release from the EU commission:
"Commission prohibits Ryanair's proposed takeover of Aer Lingus"

Quoting Braybuddy (Thread starter):
Phew! A no-brainer if ever there was one . . .

Absolutely. Unfortunately, MOL is determined to go to court on this, so the whole sad saga is going to continue for a while yet. Not that I think that he has any chance of succeeding in court, but while he's pursuing all legal avenues, FR is holding on to their near-30% share in EI, effectively blocking any meaningful investment by non-hostile third parties in Aer Lingus.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-27 04:28:35 and read 5239 times.

Some excerpts from the commission's press release I linked above:

* In 2007 the Commission prohibited Ryanair's first attempt to acquire Aer Lingus (see IP/07/893) and this decision was upheld by the EU General Court (MEMO/10/300).
* Commission took into account changes in market circumstances since 2007, [...] market positions of Ryanair and Aer Lingus have become even stronger; combined market shares going up from 80% in 2007 to 87% in 2012 for short-haul flights out of Dublin. [...] number of routes to and from Ireland operated in competition by Ryanair and Aer Lingus has increased from 35 in 2007 to 46 in 2012.
* There is competition from other scheduled carriers on only 7 of these 46 routes.
* EI and FR are the only scheduled carriers focused on point-to-point connections to/from Ireland, instead of feeding into hubs like LHR (BA), FRA (LH), etc.
* Proposed merger would therefore have removed the "currently vibrant competition between Ryanair and Aer Lingus"
* "In short, customers' travelling options would have been substantially reduced and it is unlikely that competitors would have been able to sufficiently constrain the merged entity in its market behaviour. Higher prices for passengers would have been the likely outcome."

On Ryanair's proposed remedies, particularly the divestiture of large parts of EI operations to FlyBe and cession of slots to IAG/BA for a guaranteed period of three years:
* Commission's investigation demonstrated that these remedies were insufficient
* Flybe not a suitable purchaser capable of competing sufficiently with the Ryanair/Aer Lingus merged entity.
* IAG/BA would not constrain the merged entity to a sufficient degree and would have little incentive to stay on the routes beyond a 3 year period
* Insufficient degree of certainty over whether remedies would/could be put in place in a timely manner
* Insufficient degree of certainty over whether the remedies would work in practice for a sustained period of time
* Views and perspectives on FR remedy packages from "large number of market participants in Ireland and internationally, including competitors, customers, travel agents, consumer associations, public authorities and airport operators." This was done three times, based on the varying remedy packages proposed by FR.


More details on the case and the findings can be found at
http://ec.europa.eu/competition/eloj...ase_details.cfm?proc_code=2_M_6663

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-27 06:12:59 and read 4934 times.

By the way, there's also an FAQ from the EU Commission, addressing questions like "Did Ryanair get a fair treatment from the Commission during the investigation?", "Why were the remedies proposed by Ryanair insufficient to remove the competition concerns raised by the Commission?", "Why did the Commission refuse remedies which were described several times by Ryanair as "unprecedented"?" etc.,

It can be found here:
http://europa.eu/rapid/press-release_MEMO-13-144_en.htm

[Edited 2013-02-27 06:18:27]

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: DeltaMD90
Posted 2013-02-27 08:37:28 and read 4649 times.

Quoting Braybuddy (Thread starter):
claiming that it could hurt competition and lead to higher prices.

Isn't this true for just about any merger? I'm sure there has to be more to this than that

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: Bongodog1964
Posted 2013-02-27 09:24:07 and read 4558 times.

Quoting DeltaMD90 (Reply 6):
Quoting Braybuddy (Thread starter):claiming that it could hurt competition and lead to higher prices.
Isn't this true for just about any merger? I'm sure there has to be more to this than that

Not necessarily, one example being BA and IB. The only routes they had in common were LHR - MAD and LHR - BCN, probably less than 1% of their business. LH's many aquisitions have also had few routes where effective monopolies would be created..

A merger of EI & FR would create a monopoly on the majority of short haul routes out of Ireland.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-27 09:51:48 and read 4490 times.

Quoting DeltaMD90 (Reply 6):
Isn't this true for just about any merger?

There's always a chance of that happening - but the likelihood increases significantly with a higher market share of any merged entity, not to mention if a merger creates a monopoly in some markets. Hence antitrust regulations.
If you check the press release and the FAQ you can see all of this quantified with regard to FR's proposed takeover of FR/EI.
That takeover was previously rejected (in 2007), a rejection upheld by courts. At the time, EI/FR combined had a market share of 80% on short-haul flights from/to Dublin. Today, the two of them control 87%. Thus, if the commission rejected the proposal 2007, they absolutely had to reject this one as well.
To quantify things further - there are 46 routes from/to Ireland that EI and FR compete on at the moment. There are scheduled operations from other carriers on only 7 of those. All of them from/to DUB. In places like ORK, a merged FR/EI would lead to a single airline offering about 98% of scheduled flights.

As for FR's claim that the Commission's decision is political - I can not see a shred of evidence for that in the documentation that has been released so far. All arguments presented by the Commission relate to the market position of a combined FR/EI, which today would be even stronger than in 2007, when the Commission already prohibited a takeover.
Anyway - FR have made clear very early on that they'll play the "it's a political decision" card if the takeover got nixed. They've also made clear very early on that they'll launch an appeal on that basis.
Which to me says the following:
* FR act in their own vacuum where no evidence at all is required for their claims. They're not stupid, so they're aware that this won't cut it in front of the EU Commission and courts, so it follows:
* FR were very aware that their takeover bid had no chance of succeeding from the beginning
* FR are very aware that their appeal will also fail, just as their last appeal did
* FR quite likely are using the whole process to obstruct a parallel investigation by the UK competition authorities which is evaluating whether even FR's 29.8% share in EI is too much; the fact that FR submitted the takeover bid within a week of the UK authorities' investigation being launched, and the fact that this investigation will get protracted further by FR's appeal certainly suggests this.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: yyz717
Posted 2013-02-27 10:06:15 and read 4447 times.

Quoting anfromme (Reply 8):
As for FR's claim that the Commission's decision is political - I can not see a shred of evidence for that in the documentation that has been released so far.

Of course it's political. Every government decision that restricts ownership rights in the private sector is a political decision.

The EU is supposed to be a free market. FR should have the right to purchase EI. Competition would not suffer since other EU carriers can step in and offer service at any time. Whether they do or not is market based decision alone (or should be).

Atlas shrugs still in 2013. So sad.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: kaitak
Posted 2013-02-27 10:23:38 and read 4401 times.

Quoting Bongodog1964 (Reply 1):
There can be very few people now in Ireland who are not aware that "low fares Ryanair works in the interests of the passengers, whilst the bloated high fares Aer Lingus only works in the interests of its staff and shareholders"

They may be aware, but they'd be wrong! FR is not always the cheapest, particularly when you consider extra charges. And now pax should probably aware that quite a lot of the money FR is saving through silly little schemes like charging for lost boarding passes, priority boarding and whatever the else is not necessarily going towards lower fares, but to its lawyers. How much, I wonder, has FR spent over the past five years on legal costs relating to this takeover (and now, the appeal). Millions? Tens of millions? The proposed appeal is not its first and it will be interesting to see the grounds of that appeal. Has it done anything to change the Commission's view on the (de) merits of its original appeal?

Sooner or later, there has to be a dividing line between "publicity" and "stark raving bonkers".

Quoting Bongodog1964 (Reply 1):
Well in Mr O'Leary's eyes anyway.

What is right in MOL's eyes is not necessarily logical. I can only guess now that MO'L is feeling some serious heat from shareholders and the board. He has lumbered the airline with a shareholding that's worth considerably less than its purchase price and on top of that, he has thrown millions in legal fees.

Quoting yyz717 (Reply 9):
The EU is supposed to be a free market. FR should have the right to purchase EI. Competition would not suffer since other EU carriers can step in and offer service at any time. Whether they do or not is market based decision alone (or should be).

If a "free market" is dominated by one supplier, particularly one with a record of forcing other competitors off a market, you can hardly call it free! A country like Ireland, being a peripheral island, needs good quality air links and customers should have a choice. The decision not to permit this takeover protects that. As FR's longest standing competitor, EI has stood its ground and FR should not be allowed to crush it, as it clearly wants to do. FR's proposals to the EU on alternative competition in the market clearly show FR's attitude to EI; it wants to split EI apart and basically destroy it.

Quoting yyz717 (Reply 9):
Of course it's political. Every government decision that restricts ownership rights in the private sector is a political decision.
OK, it's political in the widest definition of the word, but I doubt very much that the Irish govt needed to lobby the commission*; FR's proposals became more absurd and laughable by the day. Flybe? Come on! They can barely keep their heads above water operating their own business, let alone getting involved in some FR fiction.

(*In any case, as you'll see from the last item in the EU's response, a variety of interests in Ireland, including public authorities, were invited to give their views on the FR proposal; I'm sure that included the govt).

[Edited 2013-02-27 10:36:17]

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: UALWN
Posted 2013-02-27 10:24:53 and read 4395 times.

Quoting Bongodog1964 (Reply 7):
Not necessarily, one example being BA and IB. The only routes they had in common were LHR - MAD and LHR - BCN, probably less than 1% of their business.

And on those two routes there's ample LCC competition running MAD/BCN - LGW/LTN/STN.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: airtran737
Posted 2013-02-27 10:52:07 and read 4327 times.

Screw it, just undercut Aer Lingus to the point where they are hemorrhaging cash and go under. It would probably end up cheaper than a buyout and you wouldn't have all of those pesky fleet and employee issues to deal with.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: kaitak
Posted 2013-02-27 11:17:00 and read 4275 times.

Quoting airtran737 (Reply 12):
Screw it, just undercut Aer Lingus to the point where they are hemorrhaging cash and go under. It would probably end up cheaper than a buyout and you wouldn't have all of those pesky fleet and employee issues to deal with.

Tried it; didn't work, and on many of the routes where they compete, EI now operates ATR72s through EI regional, which will always have a lower breakeven; (try making a profit with 40 pax, at FR fares?). This is only going to expand to other routes. There are still routes where they compete "jet to jet", but EI's costs are a lot lower than they used to be and it can stand toe to toe, trade blow for blow, much better than it used to; much better for EI to go after fatter, less efficient carriers like IB, AZ, AF, SK, LO, etc.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: LJ
Posted 2013-02-27 13:03:57 and read 4106 times.

Any chance FR sells its stake to someone else (EY)? Or do they inted to keep it to make life difficult for anyone else?

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: DeltaMD90
Posted 2013-02-27 13:13:27 and read 4079 times.

Quoting Bongodog1964 (Reply 7):
Quoting anfromme (Reply 8):

So there is something more to it, it would raise prices and hurt competition too much? Makes more sense

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: GDB
Posted 2013-02-27 13:15:10 and read 4070 times.

Quoting yyz717 (Reply 9):
The EU is supposed to be a free market. FR should have the right to purchase EI. Competition would not suffer since other EU carriers can step in and offer service at any time. Whether they do or not is market based decision alone (or should be).

Atlas shrugs still in 2013. So sad.

To add to kaitak's post, maybe O'Leary's decade long insults, rants, tirades against everyone - including those with the power to make these decisions, his very particular idea (even for a LCC) of customer service, is maybe coming back to bite him?
And you bet he has long wanted to have a total monopoly of Irish civil airline operations.
He keeps banging on about how Southwest and it's founder inspired him, did they act up like him though? I don't mean being aggressive in business but all the stupid stuff.

Is it also a good idea to quote the work of a deranged harpie who ultimately alienated everyone she ever met and ended her days drawing the sort of welfare assistance she deemed inherently evil.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-27 13:16:59 and read 4059 times.

Quoting yyz717 (Reply 9):
Of course it's political. Every government decision that restricts ownership rights in the private sector is a political decision.

Firstly: Your statement doesn't really say anything at all. Because by the same token, it would also have been a political decision if the merger had been allowed to pass.
Secondly: Please check your facts. No government made any decision here.

Quoting yyz717 (Reply 9):
Competition would not suffer since other EU carriers can step in and offer service at any time.

Funny how this one comes up in every thread about this, and how every time it ignores the simple fact that this hasn't happened so far, and that there is no reason whatsoever to believe that any airline would suddenly think it's a good idea to start competing on those routes if only the merger went through. When asked by FR, even BA would only commit to some LGW connections (in exchange for slots), and only for 3 years. And Flybe wanted to be paid to take a few more routes and the Aer Lingus brand from a merged FR/EI. Which means the bottom line of a merger would be no more scheduled carrier competition on 39 out of 46 routes that EI and FR currently compete on.
I do suggest reading the press release and FAQ linked above for some more details.

Quoting yyz717 (Reply 9):
Whether they do or not is market based decision alone (or should be). Atlas shrugs still in 2013. So sad.

In keeping with the notions presented in the book you referenced, you're free to argue that - contrary to the status quo in the EU, the US, Japan and most other places you care to mention - there should not be any antitrust/competition regulations whatsoever, and that "free markets" really should mean "no boundaries to companies".
Besides the fact that even before 2008, not everybody would have agreed with you on that, it's also completely besides the point here. Because there currently are antitrust/competition regulations and authorities (as well as courts of appeal). The latter have - for the second time - prohibited an FR/EI merger for reasons very well outlined.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-27 13:41:07 and read 3981 times.

Quoting kaitak (Reply 10):
Sooner or later, there has to be a dividing line between "publicity" and "stark raving bonkers".

Slightly off-topic, but there were a few times when FR publicity and actions were firmly on the latter side of that line. Remember coin-operated toilet doors or the whole Hangar 6 saga?

Quoting yyz717 (Reply 9):
The EU is supposed to be a free market. FR should have the right to purchase EI.

The EU is not supposed to be a free market if by "free" you mean "completely unregulated".
Just like in the US, where antitrust/competition authorities are currently investigating the US/AA merger, there are regulations and guidelines in place in the EU to prevent monopolies and protect customers.

Quoting kaitak (Reply 10):
If a "free market" is dominated by one supplier, particularly one with a record of forcing other competitors off a market, you can hardly call it free! A country like Ireland, being a peripheral island, needs good quality air links and customers should have a choice. The decision not to permit this takeover protects that. As FR's longest standing competitor, EI has stood its ground and FR should not be allowed to crush it, as it clearly wants to do. FR's proposals to the EU on alternative competition in the market clearly show FR's attitude to EI; it wants to split EI apart and basically destroy it.

  
What it comes down to, once you claw through that incredible zeal MOL shows when it comes to destroying EI and Aer Arann, is this: FR want to reinstate the monopoly EI once enjoyed (and from which FR liberated the travelling public), except with FR being the monopoly holder. Considering how damaging that monopoly was to the Irish economy and to the travelling public in general, there's very good reason to prevent that monopoly to come back under the guise of Ryanair. Ireland currently has two profitable airlines that are competing vigorously with each other, thus offering the travelling public a choice in terms of price as well as quality.

Quoting LJ (Reply 14):
Any chance FR sells its stake to someone else (EY)? Or do they inted to keep it to make life difficult for anyone else?

They've said they'd sell it, they've said they wouldn't. MOL also said previously "We are never paying a dividend as long as I live and breathe and as long as I’m the largest individual shareholder." And yet, in 2010, they did pay a dividend - partially to the benefit of O'Leary, who to this day is the largest individual shareholder of the company.
My point being: Nobody knows what they're eventually going to do with their share in EI. I wouldn't take any word from FR on the matter for gospel until it's either in a legally binding document (like their financial reports) or until you actually see them selling their EI shares. I'm not holding my breath, though. The UK competition authorities may force them to sell their stake in EI after all, but that investigation may take a good while to complete now that FR are going to appeal the EU Commission's decision.
That appeal also shows that, for the time being, FR seem determined not to let go off their 29.8% and the damage they can do to EI with it. Not just in terms of preventing a meaningful investment by a non-hostile carrier, but also in terms of the roughly €10 million that, according to their latest financial statement, EI had to spend in legal costs to fend off FR's unwanted offer in the last six months of 2012 alone.

Quoting GDB (Reply 16):
Is it also a good idea to quote the work of a deranged harpie who ultimately alienated everyone she ever met and ended her days drawing the sort of welfare assistance she deemed inherently evil.

True.   Even MOL has - to my knowledge - never done that, at least publicly.
Quoting GDB (Reply 16):
To add to kaitak's post, maybe O'Leary's decade long insults, rants, tirades against everyone - including those with the power to make these decisions, his very particular idea (even for a LCC) of customer service, is maybe coming back to bite him?

Well, those points go a long way in explaining popular opinion in Ireland being against the merger. But in order to be water-tight, the EU Commission's decision should not be influenced by any of MOL's antics, unless they are directly relevant to stipulations of competition regulations.

[Edited 2013-02-27 13:44:41]

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: RussianJet
Posted 2013-02-27 13:41:35 and read 3981 times.

Quoting anfromme (Reply 17):

Funny how this one comes up in every thread about this, and how every time it ignores the simple fact that this hasn't happened so far, and that there is no reason whatsoever to believe that any airline would suddenly think it's a good idea to start competing on those routes if only the merger went through.

I was thinking the same thing. Why is this foolish myth about competitors 'stepping in' peddled so regularly? What business in their right mind would start up in a market where someone already had total dominance? To undercut Ryanair? Can't think of a single carrier that could right now in the market concerned. They'd be eaten for breakfast, and I'm sure they know it.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: kaitak
Posted 2013-02-27 15:33:51 and read 3655 times.

Quoting LJ (Reply 14):
Any chance FR sells its stake to someone else (EY)? Or do they inted to keep it to make life difficult for anyone else?

If one were looking at it rationally, that would be the thing to do. EY has certainly expressed an interest in buying, although since they currently own around 3% (?), they could only buy a about a 26% holding, as once they reach the 30%, this triggers certain processes under Irish company law. They could certanly go over the the 30% mark, BUT as a non-EU carrier, they could not own over 50%, as this would cause issues with bilateral rights.

However, the fact that they are appealing this decision - with virtually zero prospect of a win (apart from a very hefty fee for their lawyers!) - suggests that they are not going to do the rational thing. Of course, leaving that aside, perhaps EY could make an offer for their holding, which would at least reduce their losses on the EI holding ... but that's up to EY. Perhaps we will see MO'L and the board being invited out to AUH for talks ...

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: Azure
Posted 2013-02-27 16:31:07 and read 3411 times.

Quoting kaitak (Reply 20):
Perhaps we will see MO'L and the board being invited out to AUH for talks ...

Perhaps, but I doubt MOL will consider selling its stake in EI until he has not exhausted all legal remedies to all the possible jurisdictions of the planet for "his" merger !



Quoting anfromme (Reply 18):
The EU is not supposed to be a free market if by "free" you mean "completely unregulated".
Just like in the US, where antitrust/competition authorities are currently investigating the US/AA merger, there are regulations and guidelines in place in the EU to prevent monopolies and protect customers.

I totally suscribe to your point of you. The EU aims at protecting the consumers' rights.
And in several cases already, FR has been proven to infringe them...

[Edited 2013-02-27 16:32:17]

[Edited 2013-02-27 16:33:52]

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: MarcoPoloWorld
Posted 2013-02-27 19:37:30 and read 2954 times.

Quoting yyz717 (Reply 9):
Of course it's political. Every government decision that restricts ownership rights in the private sector is a political decision.

The EU is supposed to be a free market. FR should have the right to purchase EI. Competition would not suffer since other EU carriers can step in and offer service at any time. Whether they do or not is market based decision alone (or should be).

Exactly. Ryanair offered an unprecedented concession package, and still the Commission didn't even bother about asking for additional remedies as a condition of at least considering the matter favorably, but instead said that they would be denying the application even before they made a decision! It's so totally political, it's not even funny.

And in a post-aquisition scenario, even if there would ultimately remain only one (or zero) operator on certain routes, then that's because there isn't the demand to warrant them. But instead the Commission takes to managing Irish air service rather than letting the market conditions be the primary driver of supply and simply ensuring that barriers-of-entry are as low as they can be across the EU, including sectors involving Ireland.

Quoting GDB (Reply 16):
maybe O'Leary's decade long insults, rants, tirades against everyone - including those with the power to make these decisions, his very particular idea (even for a LCC) of customer service, is maybe coming back to bite him?
And you bet he has long wanted to have a total monopoly of Irish civil airline operations.
He keeps banging on about how Southwest and it's founder inspired him, did they act up like him though? I don't mean being aggressive in business but all the stupid stuff.

I can't help too in thinking that this issue helped detract the Commission from making an objective decision. Let's just admit it, MOL is a jerk. But at the end of the day, that still doesn't make it the correct decision. Instead, it makes it a decision based not only on bias toward AI and the Irish gov't but also a decision based on emotion and an aversion against O'Leary personally.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: AA94
Posted 2013-02-27 21:53:35 and read 2704 times.

Quoting yyz717 (Reply 9):

This is ignorant on many levels, the majority of which have been adequately discussed above. There is a difference between a market that is "free" and a market that is entirely unregulated. Other airlines simply can't compete with Ryanair on a numbers basis, and therefore it is necessary to ensure that FR doesn't gain total control of the market and make decisions that unfairly affect the customer.

Quoting MarcoPoloWorld (Reply 22):
I can't help too in thinking that this issue helped detract the Commission from making an objective decision. Let's just admit it, MOL is a jerk. But at the end of the day, that still doesn't make it the correct decision. Instead, it makes it a decision based not only on bias toward AI and the Irish gov't but also a decision based on emotion and an aversion against O'Leary personally.

Are you seriously arguing that the Commission didn't make the right call and/or an objective decision? Did you even read the report?

I think we're all aware that MOL is an attention-seeking, hard-pushing lunatic, but I see nothing in the Commission report that leads me to believe they used personal prejudices in their decision. They cite market shares, numbers, actual facts; things that weren't made up just to mask whatever bias they have.

Quoting RussianJet (Reply 19):
I was thinking the same thing. Why is this foolish myth about competitors 'stepping in' peddled so regularly? What business in their right mind would start up in a market where someone already had total dominance? To undercut Ryanair? Can't think of a single carrier that could right now in the market concerned. They'd be eaten for breakfast, and I'm sure they know it.

  

It would have happened if it was going to by now. Let's cut all the speculative jargon; the excuse that competitive air service will somehow magically begin after a merger that limits choice is incredibly overused. It just doesn't happen.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: BestWestern
Posted 2013-02-27 22:24:51 and read 2635 times.

Quoting MarcoPoloWorld (Reply 22):
Ryanair offered an unprecedented concession package

According to the PR of Ryanair. The same PR that promises 1,000's of jobs.

FR's 'unprecedented' concessions were smoke and mirrors.

Topic: RE: EU Blocks Ryanair's Third Bid For Aer Lingus
Username: anfromme
Posted 2013-02-28 13:08:15 and read 1535 times.

Quoting BestWestern (Reply 23):


Quoting MarcoPoloWorld,reply=21:
"Exactly. Ryanair offered an unprecedented concession package,"

According to the PR of Ryanair. The same PR that promises 1,000's of jobs.

FR's 'unprecedented' concessions were smoke and mirrors.

Absolutely.
Also, what does "unprecedented" really mean? "Having no previous example". That just implies the package (or similar packages) didn't exist before. Not that the package was actually sufficient.
Or as the Commission put it in the FAQ about the decision:

Quote:
5. Why did the Commission refuse remedies which were described several times by Ryanair as "unprecedented"?

The relevant question is not whether or not similar remedies were offered in previous merger cases that the Commission had to deal with. The question is rather whether the remedies addressed the competition concerns raised by the proposed acquisition.


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