Introduction: 2 Overview: 3 Market maturity: 3 Market share: 3 Business Model: 4 Data Provided/ Interaction: 5 1-Fares Rate: 5 2-Target Consumer: 6 3-Dublin/London Route Condition: 7 4-Airports condition: 7 Efficiency Claims by Ryan Air: 9 1-Competition Concerns: 9 2-Operational Cost Savings: 9 3-Reduced Fares: 10 Commission Analysis: 10 Efficiency Conclusion: 13 Commitments Proposed by Ryanair 14 1- Commitments proposed in Phase I: 14 2- Commission’s assessment of Phase I commitments: 14 3- Commitments proposed in Phase II: 15 4- Commission’s assessment of Phase II commitments: 15 5- Final Set of Commitments proposed by Ryanair: 15 6- Final Commission Assessment: 16 Conclusion 16

INTRODUCTION:

The main purpose of this paper is to analyze the proposed fusion between Ryanair and Air Lingus, the main players on Dublin/London routes. It aims to evaluate the situation of the merger and its influence on the market behavior, competition and quality of services provided. Ryanair, one of the largest airlines in the world, is an Irish-based “low cost” airline offering point-to-point scheduled air transport service on more than 400 routes across Europe. With more than 40 million passengers carried in 2006 Aer Lingus is the former Irish “flag”-carrier, which has changed its business model in recent years to offer mainly “low cost” point-to-point to short-haul flights. It operates more than 80 routes and carried more than 8.6 million passengers in 2006. The company is limited to Irish routes both ways operating from Dublin, Shannon and Cork. The commission is the executive body of the European Union. The body is responsible for proposing