The European Commission has formally expressed antitrust concerns to Ryanair about its possible takeover of Aer Lingus, sources familiar with the situation said today.
Ryanair will be given an opportunity to respond to the charges, listed in a statement of objections from the European Union's regulatory arm, and to have a closed hearing.
The proposed merger 'is likely to significantly impede effective competition' by 'eliminating the most credible potential entrant' on 37 routes to and from Dublin, the statement of objections was quoted as saying.
Ryanair responded angrily both to what it said was a 'leak' of confidential material, and said the 'bizarre' findings flew in the face of a wave of consolidations taking place in the European airline industry.
The Commission has until June 13 to decide whether the proposed bid is compatible with EU merger laws, whether problems may be resolved through possible changes in the proposed transaction, or whether it must be rejected outright.
The €1.48 billion bid lapsed automatically in December when authorities decided to conduct an in-depth investigation, but the company had said it intended to make a second offer, perhaps as early as May, if the Commission gave it a green light.
