Britain's Office of Fair Trading has launched a merger investigation into Ryanair's minority stake in Aer Lingus, prompting a scathing response from the low-cost airline.
The OFT said it was investigating whether Ryanair's near 30% holding in its Irish rival gave it the power to influence Aer Lingus's commercial policy and hampered competition.
Aer Lingus welcomed the move, saying it would co-operate fully with the investigation. But Ryanair, which made its first failed bid to take over Aer Lingus in 2006, said the query was 'out of time' and the OFT no longer had jurisdiction over the matter.
The airline said the European Commission and the European Courts had already ruled that it did not exert control over Aer Lingus.
The European Commission prohibited Ryanair from trying to take over Aer Lingus in 2007. In July 2010, the European courts ruled that the EC did not have the ability to force Ryanair to divest its minority stake in Aer Lingus because it did not confer 'decisive influence'.
'Given the termination of the European Commission investigation and related litigation, the OFT is now considering the acquisition,' the OFT said in a statement.
