Brexit: IAG may have to buy out British shareholders
#92
Join Date: Oct 2018
Location: London
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Posts: 271
In the BBC article, it says Flights from the UK into and overflying the EU to be allowed for 12 months to ensure "basic connectivity".
Would anyone have an idea as to what "basic connectivity" means in terms of what percentage of flights would be flying? Somehow I can't see 100% of flights being operational with that description.
Would anyone have an idea as to what "basic connectivity" means in terms of what percentage of flights would be flying? Somehow I can't see 100% of flights being operational with that description.
#93
Join Date: Sep 2016
Programs: Hilton/Diamond, BA/Gold
Posts: 158
The specific wording is:
A proposal for a Regulation to ensure temporarily, for 12 months, the provision of certain air services between the United Kingdom and the EU27 Member States, allowing air carriers from the United Kingdom to fly across the territory of the Union without landing, make stops in the territory of the Union for non-traffic purposes, and perform scheduled and non-scheduled international passenger and cargo air transport services. This is subject to the United Kingdom conferring equivalent rights to air carriers from the Union, as well as to the United Kingdom ensuring conditions of fair competition.
A proposal for a Regulation regarding aviation safety to extend temporarily, for 9 months, the validity of certain existing licences, to address the specific situation in the aviation safety sector where the European Union Aviation Safety Agency (EASA) can only issue certain certificates on the basis of a licence issued in a third country, while the United Kingdom can only issue licences as of the withdrawal date, when it has regained the status of "State of design".
The wording is very specific to "certain" services and licenses but also pretty vague at the same time!
A proposal for a Regulation to ensure temporarily, for 12 months, the provision of certain air services between the United Kingdom and the EU27 Member States, allowing air carriers from the United Kingdom to fly across the territory of the Union without landing, make stops in the territory of the Union for non-traffic purposes, and perform scheduled and non-scheduled international passenger and cargo air transport services. This is subject to the United Kingdom conferring equivalent rights to air carriers from the Union, as well as to the United Kingdom ensuring conditions of fair competition.
A proposal for a Regulation regarding aviation safety to extend temporarily, for 9 months, the validity of certain existing licences, to address the specific situation in the aviation safety sector where the European Union Aviation Safety Agency (EASA) can only issue certain certificates on the basis of a licence issued in a third country, while the United Kingdom can only issue licences as of the withdrawal date, when it has regained the status of "State of design".
The wording is very specific to "certain" services and licenses but also pretty vague at the same time!
#94
Join Date: Sep 2014
Location: Brexile in ADB
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Posts: 7,067
FT is casting doubt on IAG's plans for Brexit
https://www.ft.com/content/35ff12b0-...1-4ff78404524e
https://www.ft.com/content/35ff12b0-...1-4ff78404524e
Brussels has warned IAG that its favoured plans for its airlines to continue flying freely in and around Europe in the event of a no-deal Brexit do not work, in a potentially serious setback for the owner of British Airways and Iberia.
#95
Moderator, Iberia Airlines, Airport Lounges, and Ambassador, British Airways Executive Club
Join Date: Feb 2010
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Posts: 63,811
And it is the lead story in today's Financial Times (Wednesday 9 January 2019):
Extract:
Extract:
Brussels has warned IAG that its favoured plans to continue flying freely in and around Europe in the event of a no-deal Brexit do not work, in a potentially serious setback fro the owner of British Airways and Iberia..... Part of IAG's strategy to maintain its UK and EU flying rights is to stress that its individual airlines are domestically owned through a series of trusts and companies, rather than judged as part of the bigger group, which has a high proportion of non-EU investors.
This refers to the cunning wheeze that Iberia is owned by the Spanish retail conglomerate El Cortes Inglés (ironic naming being what it is), and that BA is really a subsidiary of a mysterious English charity. Lex on the back page says a sense of proportion is necessary, that the turbulence to sterling probably more important to IAG than ownership questions, but ends: "Expect more flight anxiety to come".
#96
Join Date: Jan 2004
Location: London, UK
Programs: BA Gold4life, ICH RA, Hyatt Gold and others
Posts: 701
By the same logic then Ryanair would only be able to fly UK EU ex UK unless it is majority British owned and controlled. Similarly Norwegian on non UK EU routes?
Or will we / have we relax ownership rules unilaterally
Or will we / have we relax ownership rules unilaterally
#99
Join Date: Jun 2003
Programs: BA, IHG, 5C
Posts: 4,413
The EU have already provisioned that under No-Deal UK airlines can fly to the EU for 12 months so BA to the EU will be OK, and there's little doubt the UK will reciprocate for EU airlines flying here. Technically BA's UK nationality could be challenged, but that would defeat the aim of the temporary provision so I would think it unlikely to have a rapid impact.
I'm still more worried, for BA, about a different non-EU destination such as the US challenging whether BA is British and can therefore fly UK-US under a bilateral (a challenge driven by Delta for example).
#100
Join Date: Sep 2014
Location: Brexile in ADB
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Posts: 7,067
https://centreforaviation.com/analys...nduring-345816
Nothing is ever simple.
#101
Join Date: Mar 2017
Location: UK
Programs: BA Gold
Posts: 532
However, it's not just IAG, it ripples across a variety of carriers. For example without the UK Shareholders some reports (admittedly from last year) suggest Ryanair has about 35% EU ownership. This from Ryan's own website
How would hard Brexit affect my rights as a shareholder?
- EU law requires Ryanair to be majority owned and controlled by EU nationals.
- In the event of a hard (or no-deal) Brexit, our UK shareholders may become non-EU nationals, and this may result in Ryanair (for a temporary period) being majority non-EU owned and controlled, our EU airline licence might be at risk.
#102
Join Date: Dec 2009
Location: Flatland
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Posts: 6,111
The specific wording is:
A proposal for a Regulation to ensure temporarily, for 12 months, the provision of certain air services between the United Kingdom and the EU27 Member States, allowing air carriers from the United Kingdom to fly across the territory of the Union without landing, make stops in the territory of the Union for non-traffic purposes, and perform scheduled and non-scheduled international passenger and cargo air transport services. This is subject to the United Kingdom conferring equivalent rights to air carriers from the Union, as well as to the United Kingdom ensuring conditions of fair competition.
A proposal for a Regulation regarding aviation safety to extend temporarily, for 9 months, the validity of certain existing licences, to address the specific situation in the aviation safety sector where the European Union Aviation Safety Agency (EASA) can only issue certain certificates on the basis of a licence issued in a third country, while the United Kingdom can only issue licences as of the withdrawal date, when it has regained the status of "State of design".
The wording is very specific to "certain" services and licenses but also pretty vague at the same time!
A proposal for a Regulation to ensure temporarily, for 12 months, the provision of certain air services between the United Kingdom and the EU27 Member States, allowing air carriers from the United Kingdom to fly across the territory of the Union without landing, make stops in the territory of the Union for non-traffic purposes, and perform scheduled and non-scheduled international passenger and cargo air transport services. This is subject to the United Kingdom conferring equivalent rights to air carriers from the Union, as well as to the United Kingdom ensuring conditions of fair competition.
A proposal for a Regulation regarding aviation safety to extend temporarily, for 9 months, the validity of certain existing licences, to address the specific situation in the aviation safety sector where the European Union Aviation Safety Agency (EASA) can only issue certain certificates on the basis of a licence issued in a third country, while the United Kingdom can only issue licences as of the withdrawal date, when it has regained the status of "State of design".
The wording is very specific to "certain" services and licenses but also pretty vague at the same time!
Obviously, making sure your carrier is on the list is important for each carrier and the country the carrier operates from, but that's separate from establishing the principle that there is a list and how long it is effective for, which is the purpose of this regulation.
#103
Moderator, Iberia Airlines, Airport Lounges, and Ambassador, British Airways Executive Club
Join Date: Feb 2010
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https://www.gov.uk/government/public...no-brexit-deal
though it's already out of date, but in a broadly positive way, the Commission has said there will be 9 month period regardless where very little will change even in the hardest of No Deal scenarios. Moreover, as someone who moves somewhat as a very small cog in a vast wheel in this area, my increasing hunch is that within the next 2 weeks the end game will be upon us, and it may even be sooner - judging from what I've seen this morning.
#104
Join Date: Jan 2004
Location: London, UK
Programs: BA Gold4life, ICH RA, Hyatt Gold and others
Posts: 701
We can't unilaterally do that as it is based on (IMO rather outdated) treaty called the Chicago Convention, which set out the rules for international air travel.
https://centreforaviation.com/analys...nduring-345816
Nothing is ever simple.
https://centreforaviation.com/analys...nduring-345816
Nothing is ever simple.
#105
Join Date: Oct 2018
Location: London
Programs: BAEC blue dust
Posts: 271
I've also not yet booked my September holiday flights. I usually gor for 2 one-way RFS bookings to be able to change the return date after flying the outbound but I don't really fancy paying 2 sets of fees if I have to cancel, so currently keeping an eye on RFS availability but holding off booking.