Ryanair lashes out at Air France and Lufthansa over ownership probe
The low-cost airline is facing allegations that it violates EU requirements for operating in the bloc.
BRUSSELS — Ryanair has accused larger airlines Lufthansa and Air France-KLM of attempting to ground it by alleging its ownership structure breaches EU regulations. The two legacy carriers, members of the European Network Airlines Association (ENAA), have filed a legal challenge over Ryanair's share ownership. ENAA argues that Ryanair no longer meets EU rules requiring majority ownership and control by EU nationals or entities.
Ryanair CEO Michael O'Leary said the association has been urging EU and Irish aviation authorities to investigate Ryanair's compliance with ownership and control rules. Ryanair rejects the allegations, stating its non-EU shareholders do not have voting rights. The legal case could force Ryanair to change its ownership structure if it loses and the Irish Aviation Authority suspends its operating license.
Analysts suggest Ryanair could address compliance issues through share purchases, buybacks, or restructuring subsidiaries. Despite the dispute, all three airlines belong to the Brussels-based Airlines for Europe (A4E) lobby, which advocates for regulatory reform.
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