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Aer Lingus wants Ryanair stake cut

Aer Lingus - Plea to EU Commission
Aer Lingus - Plea to EU Commission

A European Commission spokesman has confirmed that Aer Lingus has asked it to consider ordering Ryanair to reduce its stake.

'I can confirm we have received a notice about failure to act and we will reply by October 17,' Commission spokesman Jonathan Todd told Reuters.

When the EU regulator blocked Ryanair's takeover bid for Aer Lingus in June, the Commission said it believed it did not have the legal power to order Ryanair to reduce its 25% stake.

Ryanair has since increased its stake to 29.4%. The two airlines have been in dispute about Ryanair's attempts to call an EGM of shareholders to discuss Aer Lingus's withdrawal from the Shannon-Heathrow route.

It also emerged today that the IMPACT Trade Union, which represents Aer Lingus Pilots and caban crew, have written to the State's Industrial Relations Troubleshooters.

The National Implementation Body is accusing the airline of a flagrant breach of the towards 2016 partnership agreement.

Yesterday Aer Lingus management announced that they were imposing an immediate pay freeze until unions agree a €20m cost cutting package known as PCI.

Unions are furious and IMPACT has called on the NIB to intervene in the dispute.

IMPACT cabin crew representatives met management today to discuss issues arising from the establishment of the Belfast base.

The representatives will hold a meeting tomorrow to discuss the belfast base, the withdrawal from Shannon and the pay freeze.

Meanwhile SIPTU shop stewards will meet on monday to consider their response, later that day they will meet management to voice their anger about the pay freeze.

Meanwhile, Ryanair says it carried 4.35 million passengers last month, an increase of 23% on the same period last year.

The load factor - the percentage of seats filled - dropped by one points to 85%.