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The EU has given airlines just seven months to sort out their shareholdings in the event of a no-deal Brexit.
According to The Financial Times, the EU has said that airlines wishing to retain their right to fly within the EU must have majority EU shareholders within seven months of March 29. This ruling particularly effects IAG, which owns both Iberia and British Airways, and may have to force the sale of its shares held by non-EU members if it wants to retain its EU status. It is thought to have just 25% of its shares held by EU members. The FT also notes that there have been talks on extending more freedoms to all-cargo airlines.
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COMMENTS 2
Robert Jervis
February 12, 2019 at 2:54 pmThis ruling (?) clearly benefits state-owned airlines versus those with a “cosmopolitan” share roster. There is no de facto requirement to be 75% EU owned now. Whys should there be after Brexit? IAG’s registered office is in Madrid…
Alex Lennane
February 12, 2019 at 2:59 pmThere is still a rule that EU airlines must be 51% owned by EU entities, which of course will soon exclude UK entities…