Ryanair Gets EUApproval To Buy Laudamotion Stake; Urges Action Against Lufthansa

Ryanair Holdings Plc. (RYA.L,RYAAY) announced Friday the EU Commission’s decision to approve its proposed acquisition of a 75% interest in Austrian airline, Laudamotion, in which it already owns 24.9%.

Further, noting the threat to Laudamotion by Lufthansa, Ryanair called on the competition authorities to halt Lufthansa’s repeated abuses of its dominant position, which are designed to harm competition and consumers.

Ryanair said it has entered into partnership with Niki Lauda to offer competition, lower fares, and more choice for consumers in Austria, Germany, and Spain, which is where the majority of Laudamotion services currently take place.

However, Laudamotion is currently under threat by Lufthansa who are attempting to remove the 9 aircraft Lufthansa was obliged by the European Commission to provide to Laudamotion in order to allow Laudamotion to restart services.

The company noted that Lufthansa is trying to destabilise and damage Laudamotion. Lufthansa failed to deliver 2 of the 11 aircraft they were required to under the EU Competition decision concerning Lufthansa’s acquisition of Air Berlin.

Also, some of the aircraft that Lufthansa had committed to deliver being delayed until after the summer 2018 season, further reducing Laudamotion’s ability to take up slots and offer S2018 flights and services.

Ryanair added that Laudamotion only able to operate a 19 aircraft fleet in summer 2018 by wet leasing 10 B737 aircraft from Ryanair.

In addition, Lufthansa Group delay payment of over 1.5 million euros of wet lease payments properly due to Laudamotion, for flights which Laudamotion operated for Lufthansa in March, April and May.

Ryanair said it remains committed to bringing competition and choice to Austrian, German and Spanish markets through this investment in Laudamotion.

Ryanair’s Chief Legal & Regulatory Officer, Juliusz Komorek said, “We urge the EU competition authorities to take action and prevent any further attempts by Lufthansa to damage competition through its anti-consumer behaviour.”

by RTTNews Staff Writer

Source: Read Full Article