British Airways has always been relaxed about Brexit and the CEO, Willy Walsh, has previously said he was absolutely confident BA would be able to continue flying to and from destinations inside the EU whatever happened. But to be able to do this they have to be able to show they are owned and controlled by EU shareholders and this looks as if it may not be as easy as Mr Walsh thinks.
BA are part of the IAG (International Airlines Group) along with the Spanish airline Iberia.
This report (HERE) in the Irish Times casts doubt that BA will be able to satisfy the EU that it is majority owned by EU nationals. IAG uses a complicated system to try and make it appear the airlines in the group are owned and controlled by nationals from the respective countries.
BA are part of the IAG (International Airlines Group) along with the Spanish airline Iberia.
This report (HERE) in the Irish Times casts doubt that BA will be able to satisfy the EU that it is majority owned by EU nationals. IAG uses a complicated system to try and make it appear the airlines in the group are owned and controlled by nationals from the respective countries.
After Brexit, British shareholders will not count as EU nationals and BA may have to buy them out to ensure they can continue to operate as an EU airline.
The Irish Times says:
"Brexit poses a challenge for some European carriers, which will have to show they are more than 50 per cent EU-owned and controlled to retain their flying rights in the bloc. Certain companies – including IAG – have yet to ensure they will reach that threshold after Brexit, when UK nationals will no longer count towards the tally.
"Simon Phippard of law firm Bird & Bird said: 'Without using dual nationals, it seems difficult for a single company to be majority owned and effectively controlled by both British and EU27 nationals.”
He added that if BA were still to be considered British after Brexit, its ability to fly to non-EU countries would be subject “to the UK negotiating new bilaterals with those countries'".
Looks like Willy Walsh might have a big problem come March 30th.
The Irish Times have a follow up report (HERE) suggesting IAG are 'unconcerned' about these ownership rules and an analyst at a stockbroking company says it isn't a flying issue, more of a 'shareholder issue'. It is but it must represent a Brexit related problem that IAG didn't have before.
