Ryanair/Aer Lingus Second Act: is it possible to remedy to competition concerns stemming from aviation mergers leading to route dominance scenarios?
For the third time in a space of few years ( Ryanair/AerLingus , Ryanair/Aer Lingus III and Olympic Air/Aegen Airlines ) the European Commission has blocked an airline merger leading to negative effects on competition. And for the second time in a row the Commission thwarted the attempts of Ryanair to purchase its Irish competitor Aer Lingus. What the prohibition decisions of Ryanair/Aer Lingus , Olympic Air/Aegen Airlines and Ryanair/Aer Lingus III appear to have in common is the theory of competition harm relied on by the Commission. The Commission blocked those transactions because of route dominance rather than slot dominance. In other words, the expected negative effects of the banned concentrations on competition were thought to be due to the post-merger dominant position that the parties would have on a number of links. On the other hand, the availability of slots was not a relevant issue in these cases. The airports from which the merging parties operated did not suffer...