11 July 2007

Mr O'leary - you do have a point. EC logic failure

While the ever ebullient Mr O'Leary can hardly be described as the most diplomatic of folks, he certainly does have a point over the EC's recent ruling on the moribund EI/FR merger.

The EC has been considerably adroit at avoiding a formal confrontation on the aid issues to "sick" European airlines. Particularly Alitalia and Olympic (whatever it’s called this week). But it goes back further to Sabena, Air France TAP and others. To disallow the valid merger between the two certainly goes totally against the grain of the EC's stated and legislated policies.
As this is a family blog I will not repeat some of the more colorful statements of Mr O’Leary on the subject but you have to admit there is a significant logic disconnect going on here.

I believe the merger was a non-starter due to the Irish Government's blocking shareholding and the Union's opposition. But in the next down turn, this is a dangerous precedent of the EC reacting to member state pressure. However when you are judge, jury and executioner (as is the EC's rights in law) then I guess you can do whatever the heck you like.

Personally I think the Commission has done itself a huge disservice and should be publically flogged.


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