Europe's low cost airline, Ryanair Holdings has announced its intentions to appeal against the decision by European regulator that seeks to block the takeover of Irish carrier Aer Lingus by the low-cost airline.

The European Commission had issued formal objections to a new deal by Ryanair to takeover Aer Lingus alleging that the combining of the two Dublin based carriers would impact competition climate. Ryanairalso said that it has been informed by the European Commission that the _694 million takeover proposal is not likely to be approved.

Aer Lingus and Ryanair, both believe that the deal is unlikely to be approved by the European regulators. Ryanair has assured European regulators that there are radical remedies to address the concerns relating to lower competition. On the other hand, Aer Lingus indicated that the deal is headed for a failure. Ryanair already owns 30 percent of Aer Lingus.

Even if Ryanair gets an approval from the EU authorities, it will still have to get an approval from Lingus shareholders and staff before the takeover can be finalized. Reports said that Aer Lingus will have to transfer all but four landing slots at Heathrow airport if it is to merge with its Dublin based partner.