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Old Nov 24, 2017, 3:35 am
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Calchas
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Brexit: IAG may have to buy out British shareholders

The Financial Times has seen the Brussels negotiating position on aviation.

Essentially it is not too surprising; there is no room (and presumably no time) for a “bespoke” deal; either the UK signs up to the European Common Aviaition Area, and therefore accepts application of EU law and EU court rulings over air travel; or it is treated as a third country.

This means that IAG, EasyJet, and Ryanair will have to show that they are majority owned and controlled by EU citizens, potentially meaning a buy out of British shareholders. Majority ownership by EU citizens is a requirement of holding an EU operating certificate. Without such a certificate, it is illegal to operate passenger flights between points in the EU. British certificates would also cease to be recognised.

The leaked presentation also says, “All rights, obligations and benefits derived cease. No traffic rights — end of market access; ownership & control rules — third country restrictions kick in; end of mutual recognition of certificates; end of participation in European Aviation Safety Agency (EASA).”

Brussels also notes that they do not believe the old bilateral treaties are automatically revived, so the UK and EU would need to negotiate again for traffic rights to fly planes between the UK and EU, or potentially on a country-by-country basis.

Again this all assumes the UK maintains its hard position against EU law and court rulings having effect in the UK. Personally I suspect that may soften in areas such as aviation.

FT article (subscription required).
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