Chambers Ireland’s Air Transport Users Council (ATUC) has said that Ryanair’s revised bid for Aer Lingus should not be approved in the interest of competition. While both Ryanair and Aer Lingus have solid records of reducing ticket prices, as a merged entity this history could be threatened.

Speaking ahead of the Airlines’ presentation to the Joint Oireachtas Committee on Transport, Chambers Ireland’s ATUC Spokesperson, Sean Murphy said, “If the merger were approved it gives rise to a potential monopsony (where the merged airline would become a de facto monopoly purchaser of services) being created at the Republic’s key airports. Ireland’s position as an island economy is critical. Connectivity is key and, in the case of many business passengers, interlining. There is no guarantee that this would remain a priority if the bid succeeds,” Murphy said.

“At the time of the Aer Lingus flotation, ATUC noted the cost challenges that Aer Lingus faced. This now appears to be accepted by all stakeholders with recently agreed work practice changes in Aer Lingus offering the airline much better prospects than was the case heretofore to compete more aggressively with Ryanair and other operators,” Murphy continued.

“Aer Lingus faces significant challenges in competing against Ryanair, one of the most successful airlines in the world. It should be allowed to do so. However, in the event of a successful Ryanair takeover, then it is crucial that adequate competitive safeguards be put in place to ensure that neither monopolistic nor monopsonistic practices could be tolerated. Such measures would need to include enabling an operator such as easyJet to compete with Ryanair on the Dublin to London Heathrow routes while ensuring that these slots are secured for Ireland in perpetuity,” he said.

“Furthermore, Dublin’s connectivity to the UK market including Heathrow remains very rich. Under either Ryanair or Aer Lingus, Shannon should gain a Heathrow slot and thereby enable the Midwest region to reassert its position as one of the best connected non-capital regions in Europe.”

“The only thing worse than a public monopoly is a private monopoly. If Ryanair’s bid for Aer Lingus on these terms is successful, then this is a very real prospect,” Murphy concluded.