EU court rejects Aer Lingus challenge

A European court has rejected an attempt by Aer Lingus to stop what it calls "interference" by rival Ryanair, Aer Lingus said today.

Aer Lingus turned to the court after the European Commission said in October it could not force Ryanair to cut its stake in Aer Lingus, which Ryanair in August said stood at over 29 per cent.

"The President of the Court of First Instance in Luxembourg has today declined Aer Lingus's request for an interim order restricting Ryanair from interfering in the running of Aer Lingus' business," Aer Lingus said in a statement.

"Today's decision only dealt with the request for an interim order and Aer Lingus's appeal against the Commission's decision still remains to be determined by the court," Aer Lingus added.

The Commission, which has the exclusive power to regulate large mergers in the 27-nation EU, last June blocked a Ryanair takeover bid for Air Lingus, saying they would together dominate European routes out of Dublin.

Ryanair, Europe's largest budget carrier, also appealed last year against that decision at the Court of First Instance, saying the Commission's opposition to the takeover was unlawful and politically motivated.

"We welcome the decision from the court which confirms the European Commission's findings that Ryanair has no control over Aer Lingus," a spokeswoman said.