BRUSSELS— Ryanair (FR) has accused Lufthansa (LH) and Air France (AF) of using European Union ownership regulations to challenge its operating licence, escalating a dispute between low-cost and traditional airlines.
The Irish carrier is preparing to fight a legal challenge brought by the European Network Airlines Association (ENAA), which has questioned whether Ryanair meets the bloc’s requirements for European ownership and control.
The dispute centres on a significant gap between Ryanair’s share ownership and its voting rights.
According to its April 2026 disclosure, EU nationals held 30% of Ryanair Holdings’ issued share capital at the end of March, but the airline maintains that restrictions on non-EU shareholders’ voting rights ensure compliance with EU law.
Ryanair’s Dispute with European Carriers
EU Regulation 1008/2008 requires airlines holding an EU operating licence to be majority-owned and effectively controlled by EU nationals or qualifying entities.
ENAA argues that Ryanair’s shareholder composition warrants regulatory scrutiny and has spent months pressing Irish and European aviation authorities to investigate the matter.
Ryanair rejects the allegations, maintaining that non-EU shareholders cannot exercise voting rights over their restricted shares.
The company introduced these measures in January 2021 and subsequently lifted restrictions on purchases by non-EU investors in March 2025 while retaining voting restrictions.
Ryanair CEO Michael O’Leary criticised the legal action during an appearance in Brussels, accusing the association’s members of trying to restrict competition and passenger choice.
The airline has pledged to oppose the case, describing the challenge as an attempt to ground its operations rather than compete with its low fares.
ENAA turned to the Irish High Court after it considered the Irish Aviation Authority insufficiently responsive to its concerns.
A court ruling against Ryanair could require changes to its ownership arrangements, although suspension of its operating licence would depend on the airline’s compliance with the judgment.
Licence Suspension Risk for Ryanair
The legal challenge does not mean Ryanair will automatically lose its operating licence. Augusto Viansson Ponte, a director at Alton Aviation Consultancy, said the complaint had enough substance to warrant examination, but it remained too early to conclude that the airline had breached the rules.
Corrective measures could precede any suspension, depending on the court’s findings and the requirements imposed on the airline.
Possible options include restricting purchases by non-EU investors, transferring shares to eligible European investors, buying back selected shares or restructuring licensed subsidiaries.
These measures could allow Ryanair to address any identified compliance problems while continuing its operations. However, the outcome will depend on the legal proceedings and the specific remedies required by the court.
European Airlines Are Facing EU Reform
The dispute has created tension among airlines that otherwise share common lobbying interests. Ryanair, Lufthansa and Air France-KLM are all members of Airlines for Europe (A4E), which supports changes to the EU rules governing air services, including ownership and control requirements.
The airlines have jointly backed greater flexibility in the regulations, including a proposal that could allow institutional investors from selected non-EU countries to hold a limited share of an airline’s stock, with those holdings counting towards the European ownership requirement.
Such a change could widen airlines’ access to investment, although its implementation would depend on EU lawmakers.
The disagreement over Ryanair’s existing structure has exposed competing approaches to the current rules even as the carriers support reform.
O’Leary threatened to withdraw Ryanair from A4E unless the legal case was dropped by the end of 2026, Politico reported.
The lobbying group responded that members could disagree on individual issues while continuing to pursue shared objectives for European passengers. Neither Lufthansa nor Air France-KLM commented on his threat.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
