Back to an earlier question with no answers, but this point raises it again. I heard from a Wizz air pilot that the main investor in RYR & Wizz are the same. Thus there is an unofficial agreement of not treading on toes. Speculation abounds as to what will happen when Wizz go to the stock market. Will RYR take a majority stake and merge the two? Will they leave well alone and reap profit? If that is all true it begs the question of this now declared direct competition. Any insiders from either party with some facts?
Some investors are the same BUT not all and those the same are not majority shareholders which is key.
Any agreement not to compete would be called a Cartel, not only is it illegal BUT you get a nice cell as a result plus a huge fine and EU goes through your company like a dose of the 5hits.
Its easily argued they don't compete but you could argue just the same with Easyjet and others.
In relation to if Wizz ever floats well if FR decided to take a stake it would have to be an arms length transaction and would get crawled over.
Just because you own shares in Company A and Company B unless you personally get a major benefit from company A why would you give them your shares.
In addition IF FR decided to buy shares in Wizz post float, the shareholding by joint investors could get lumped in with the FR holding and both parties could get accused of acting as a concert party which could get tricky.
It is a complex area BUT given how much money the Texans pay in legal advice I think you can pretty much guarantee that the holdings are viewed and looked at separately and any instructions re competition aren't going to happen.