The European Union’s top antitrust regulator yesterday blocked Ryanair’s audacious €1.48bn ($2bn) bid to take over domestic rival Aer Lingus, but ruled out any move that would force the low-cost airline to divest its current 25 per cent stake in the Irish flag carrier.

Neelie Kroes, the European Union competition commissioner, said a combination of the two carriers would have led to a near-monopoly in the Irish market and would have harmed passengers.