A new legal battle shakes European skies. Aviation giants Lufthansa and Air France-KLM, have launched a legal offensive against Ryanair before the High Court of Ireland.
The lawsuit, articulated through the European Network Airlines Association (ENAA) —an employers' association that also includes airlines such as the Greek Aegean—, directly questions the legality of the low-cost firm's shareholding structure after Brexit. If the appeal is successful, the litigation could lead to the suspension of the Dublin-based company's community operating license.
The core of the controversy lies in European Union Regulation (EC) 1008/2008, which requires airlines with a community license to be more than 50% owned by EU citizens and remain under their effective control.
The United Kingdom's exit from the community club turned thousands of British investors into non-community shareholders overnight, forcing Ryanair to implement severe corporate adjustments: the airline restricted the voting rights of its British and non-community investors and culminated in December 2021 its delisting from the London Stock Exchange to concentrate its listing in Dublin.
Faced with this move, the employers' association of traditional airlines defends the legitimacy of its legal challenge, arguing that "strict compliance with the ownership and control rules of Regulation (EC) 1008/2008 is an indispensable requirement to ensure fair competition and legal certainty within the single aviation market".
With this action, the historical companies seek to have the court determine "whether the company's current structures truly guarantee effective control and majority ownership in the hands of EU nationals" after the shareholder turbulence caused by the British disconnection.
For its part, Ryanair has responded with extreme harshness to the judicial challenge from its competitors, calling the claim an "artificial, forced, and unfounded attempt by network airlines to restrict competition and the supply of low-cost flights in Europe".
After reaffirming that it "fully complies with all EU ownership and control rules", Ryanair's management has made it clear that it will "vigorously oppose this unfounded legal action before the Irish courts to defend our operating license and the interests of our passengers".
The process is still in its preliminary phases. In the coming months, the Irish justice system will have to determine whether the shielding mechanisms applied by Ryanair respect the letter and spirit of European regulations, in a ruling that promises to set a historic precedent for the continent's aeronautical map.
Add La Voz de Lanzarote as a preferred Google source.
Stay informed with the latest current news.