Ryanair and Aer Lingus Merger Cases - Theoretical discussion and empirical analysis

Supervisors: Johnen, Johannes ; Garella, Paolo G.
Faculty: Faculté des sciences économiques, sociales, politiques et de communication
Degree label: Master [120] en sciences économiques, orientation générale
Abstract: This work focuses on the two rejected merger cases No COMP/M.4439 and No COMP/M.6663 which entailed a twofold effort by part of Ryanair to acquire its competitor Aer Lingus, in 2006 and 2012. The aim of the analysis is to provide a discussion of these proposed acquisitions from different standpoints. In the first part, a theoretical commentary highlights the economic reasons which have led the European Commission to refuse the proposed acquisitions. Within this section, theoretical models present in the literature are discussed in application to the mergers analyzed. In addition to this, an empirical analysis is provided within this work. An event study methodology is applied making use of stock prices data in the financial market with the aim of offering an alternative classification of the mergers. For the theory underling this second chapter we refer to the collusion hypothesis. Results are derived from the comparison of the two sections.

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