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Aer Lingus could be less than 2 months away from losing its licence to fly intra-EU

Aer Lingus could be less than 2 months away from losing its licence to fly intra-EU

Old Feb 3, 19, 9:15 am
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Aer Lingus could be less than 2 months away from losing its licence to fly intra-EU

IAG warned its favoured plan will not meet new requirements that will come into force just seven months after Brexit



Plans by airline groups to maintain existing licences must be presented to regulators within two weeks of the draft law being adopted, which could come later this month.

“That plan shall set out, in a complete and precise manner, the measures intended to achieve full compliance with the [EU] ownership and control requirements as from October 27th, 2019 at the latest,” the draft legislation states. “Where the air carrier has not presented a plan within the [two-week] time limit, the competent licensing authority shall revoke the operating licence.”


Independent estimates suggest IAG faces the biggest challenge of all, with some analysts putting its current EU ownership as low as 25 per cent.

Brussels has warned IAG its favoured plan to continue flying freely around Europe would not comply with EU laws, according to senior officials.

At a press conference on Friday, IAG chairman Willie Walsh declined to comment on the work IAG was doing with its Spanish airlines to make them ready for Brexit. He added that he expected the UK and EU to reach “a comprehensive agreement” on Brexit.

An IAG spokesperson said the group was “confident” they would comply with EU ownership rules post-Brexit.


Last edited by irishguy28; Feb 3, 19 at 9:36 am
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Old Feb 4, 19, 4:41 am
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So is Iberia, Vueling and even possibly Ryanair and Easyjet (depends where Stelios claims to be UK/Cypriot or Greek). If Brexit happens a lot of assets in London will likely migrate to EU locations shifting the view. Qatar's ownership of 20% of IAG is actually owned by a Luxembourg company.

Worst case is a transition period to sort all this out

And for the record IAG does not own 100% of Aer Lingus, this Irish government actually remains a share holder
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Old Feb 4, 19, 6:28 am
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Originally Posted by ROKNA View Post
So is Iberia, Vueling and even possibly Ryanair and Easyjet (depends where Stelios claims to be UK/Cypriot or Greek).
I don't know in which countries he is a citizen, but if is a citizen of multiple countries, then it is my understanding that it is enough if at least one of the countries is part of the EU, so as long as he holds Greek or Cypriot citizenship, it should be fine.
Originally Posted by ROKNA View Post
If Brexit happens a lot of assets in London will likely migrate to EU locations shifting the view. Qatar's ownership of 20% of IAG is actually owned by a Luxembourg company.
I think that the Luxembourg company needs to be owned to at least 50% + 1 share by an EU shareholder for it to count as an EU shareholder of IAG.
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Old Feb 4, 19, 7:31 am
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Originally Posted by ROKNA View Post
And for the record IAG does not own 100% of Aer Lingus, this Irish government actually remains a share holder
I think you might be mistaken there...


Originally Posted by The Irish Times
Government statement on the sale of its stake in Aer Lingus

Having carefully considered all elements of the offer, the Government considers that a sale of the State’s minority shareholding to IAG, on the basis of the terms offered, would be the best means of securing and enhancing Ireland’s connectivity with the rest of the world and maintaining a vibrant and competitive air transport industry in Ireland. It would also best serve the interests of the travelling public, Aer Lingus and its employees, the Irish tourism industry and the Irish economy as a whole.

The Government also agreed this morning the General Principles of the proposed disposal of the State’s shares which are held by the Minister for Finance, and Minister Donohoe will seek Dáil approval for these shortly, as required under Section 3(5) of the Aer Lingus Act 2004
Originally Posted by The Irish Times
The sale of the State’s 25 per cent stake in Aer Lingus to International Airlines Group (IAG) has been recommended by the Cabinet and will go before the Dáil on Wednesday.

Announcing the move, Minister for Transport Paschal Donohoe said the seven-year guarantee on the company’s slots at Heathrow and commitments on jobs were among the key elements which swung Coalition support.

https://www.oireachtas.ie/en/debates.../2015-05-28/3/
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Last edited by irishguy28; Feb 4, 19 at 7:37 am
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Old Feb 4, 19, 7:36 am
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The Irish Government has a single share
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Old Feb 4, 19, 7:49 am
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Originally Posted by Some person View Post
I don't know in which countries he is a citizen, but if is a citizen of multiple countries, then it is my understanding that it is enough if at least one of the countries is part of the EU, so as long as he holds Greek or Cypriot citizenship, it should be fine.I think that the Luxembourg company needs to be owned to at least 50% + 1 share by an EU shareholder for it to count as an EU shareholder of IAG.
He holds British/Cypriot and Greek passports.
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Old Feb 11, 19, 1:32 pm
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IAG Printer Friendly Version - News Release

IAG statement saying 47.5% owned ex-EU and capping it there. So when the UK leaves I assume that number will jump up and IAG will have to plan to move them around somehow?
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Old Feb 11, 19, 2:33 pm
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Originally Posted by mccartje View Post
IAG statement saying 47.5% owned ex-EU and capping it there. So when the UK leaves I assume that number will jump up and IAG will have to plan to move them around somehow?
If there is no Brexit deal, then the number of non-EU shareholders will be too high, so IAG will have to act by reducing the number of shares owned by non-EU shareholders. If there is some Brexit deal, then UK shareholders might be counted as "EU shareholders", at least for a transitional period. Regulation 1008/2008, Article 4 states:
An undertaking shall be granted an operating licence by the competent licensing authority of a Member State provided that:

(f) Member States and/or nationals of Member States own more than 50 % of the undertaking and effectively control it, whether directly or indirectly through one or more intermediate undertakings, except as provided for in an agreement with a third country to which the Community is a party;
For example, there seems to be an agreement with Norway, Iceland, Liechtenstein and Switzerland such that citizens of those countries count as "EU shareholders" for the purpose of the regulation. In other words, a similar agreement could be signed with the UK.
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