The lowcost carrier Ryanair will start winding down its stake in the Irish flag carrier Aer Lingus starting next year to comply with the UK watchdog’s ruling on concerns over competition.
“We appreciate the fact that Ryanair has to sell down its share to 5 per cent because it is our main competitor,” said Christoph Mueller, the chief executive of Aer Lingus, in an interview in Abu Dhabi.
“We all really hope that the issue of Ryanair would be done in the course of 2015. But when exactly in 2015, it is very difficult to say.”
The Dublin-headquartered budget carrier controls a near 30 per cent stake in Aer Lingus, with the Irish government holding more than 25 per cent of shares.
Ryanair had previously tried to takeover the company.
Earlier this year, the UK’s Competition and Markets Authority ordered Ryanair to reduce its stake in Aer Lingus to only 5 per cent for “competition purposes”. he regulator will oversee the sale.
However, Mr Mueller said that there is a greater desire to have more shares of his company traded on the market. Currently 35 per cent of the airline’s shares are tradable, which are listed on the Dublin and London stock exchanges.
“We always felt that the liquidity of our stock is not sufficient. This is what our shareholders tell us and so far we are happy that the sale will take place,” said Mr Mueller.
“There is a lot of demand for our shares, especially from [investors in] the United States.”
There is also mounting speculation that Etihad Airways could raise its stake in Aer Lingus from its current 4.99 per cent level.
But Mr Mueller said the next phase of partnership with Etihad will be about creating synergies between the two airlines. “We will focus on the cost side and on synergies and joint purchasing, and products of this nature.”
Aer Lingus said in July that Mr Mueller will leave the company in May next year, after being the chief executive since May 2009. The announcement came as it faces a pension deficit, a row with trade unions, and uncertainty over Ryanair’s stake.
“We gave us until May of next year in order to have a decent search [period] for a successor,” he said.
Aer Lingus posted an operating profit of €61.1 million (Dh312m) last year, versus €69.1m the year before. The carrier’s long haul business, or its transatlantic routes, continues to perform better than short haul routes.
selgazzar@thenational.ae
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Padmaavat
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West Ham 2-3 Tottenham
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
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Twenty20 International series
Thu Oct 26, 1st T20I, Abu Dhabi
Fri Oct 27, 2nd T20I, Abu Dhabi
Sun Oct 29, 3rd T20I, Lahore
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David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Specs
Price, base: Dhs850,000
Engine: 3.9-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
Fuel economy, combined: 11.3L / 100km
