OFT launches probe into Ryanair's Aer Lingus stake

Ryanair boss Michael O'Leary today slammed the Office of Fair Trading for launching an investigation into its 30% stake in rival airline Aer Lingus.

The probe comes more than four years after the budget airline bought the shares in the carrier.

The OFT said it was investigating whether Ryanair's shares in Aer Lingus gave it "material influence" over the airline.

The news comes a few months after the European Commission said it was not able to force Ryanair to divest its 29.8% stake because the budget outfit did not confer "decisive influence" over its domestic rival.

The OFT said since UK law investigates "material influence" instead, it could trigger a different outcome.

However, it is still making enquiries as to whether it has jurisdiction over the case.

O'Leary hit back: "Since Ryanair is not in a position to exert de jure or de facto control over Aer Lingus the commission is not in a position to require Ryanair to divest its minority shareholding, which is, by the way, not a controlling stake."

He claimed the probe by the OFT set "an alarming precedent".