Ryanair is arguing that its obligation to reduce its Aer Lingus stake should be reconsidered in light of IAG's proposed takeover of the Irish flag carrier.

Having lost an appeal against a ruling by the UK's Competition and Markets Authority, the budget carrier is required to cut its Aer Lingus holding from 29% to 5%. But Ryanair contends that IAG's Aer Lingus approach undermines the original case for divestment, and that the watchdog should therefore "revoke" the ruling.

"The CMA speculated in its final report that Ryanair's 29% shareholding would deter other airlines from merging with or bidding for Aer Lingus," says Ryanair. "Clearly, IAG's recent offers demonstrate that the CMA's findings were wrong and that its divestment remedies must be revoked in light of this compelling evidence."

Ryanair is to take the case to the UK's Supreme Court after defeat in the Court of Appeal.

Source: Cirium Dashboard