Ryanair lashes out at Air France and Lufthansa over ownership probe
Ryanair has accused its main rivals, Lufthansa and Air France‑KLM, of seeking to ground the Irish low‑cost carrier by filing a legal challenge that claims the airline’s ownership structure breaches EU rules requiring airlines to be majority‑owned and effectively controlled by EU nationals or entities. The challenge, brought by the European Network Airlines Association (ENAA)—a lobby group that includes the two legacy carriers—has been taken to the Irish High Court, where it could result in the suspension of Ryanair’s operating licence if the court finds the airline non‑compliant. ENAA points to Ryanair’s March announcement that only 30 % of its shares are held by EU nationals, while CEO Michael O’Leary, an Irish citizen, owns just 4 % of the stock, arguing that the remaining non‑EU shareholders could undermine EU control.
The dispute centers on the EU’s Air Services Regulation, which mandates majority EU ownership for airlines to retain their licences, a rule the legacy carriers say Ryanair no longer satisfies. Ryanair counters that its non‑EU shareholders lack voting rights, meaning effective control remains within the EU, and denounces the lawsuit as an attempt by competitors to limit competition and choice for European travellers. Aviation analyst Augusto Viansson Ponte notes that while ENAA’s request merits examination, it is premature to conclude that Ryanair is in violation; even if the court rules against the carrier, the first remedial step would likely involve corrective measures rather than an immediate grounding, such as restricting non‑EU share purchases or restructuring subsidiaries.
The legal battle threatens to strain relations within the Brussels‑based Airlines for Europe (A4E) lobby, of which all three airlines are members and which is jointly pushing for reforms to the ownership rules to allow limited non‑EU institutional investment. O’Leary warned he would quit A4E unless the case is dropped by year‑end, highlighting the tension between preserving competition and seeking regulatory flexibility. While Lufthansa and Air France‑KLM have not responded to the threat, the outcome could reshape the EU’s aviation ownership framework and affect other carriers, such as easyJet, that are eyeing new investment structures under the proposed reforms.
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