The European Union has blocked a second attempt by Ryanair to acquire rival Aer Lingus for $909 million, Bloomberg News has reported.
Regulators said the deal would increase prices and reduce choices on flights from Ireland. They reportedly added that the merger would have created a monopoly on 46 routes from the country.
“The acquisition of Aer Lingus by Ryanair would have most likely led to higher fares,” EU Competition Commissioner Joaquin Almunia reportedly said in the statement. Ryanair’s concessions “were simply inadequate to solve the very serious competition problems which this acquisition would have created.”
Ryanair, Europe’s largest low cost carrier, owns about 30% of Aer Lingus, which also has a 2.987% stake acquisition by Etihad Airways.
Ryanair will challenge the ruling in the EU courts, but Aer Lingus said it is happy about the rejection.