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Brexit: IAG may have to buy out British shareholders

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Old Dec 19, 2018, 11:28 am
  #91  
 
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Originally Posted by rockflyertalk
If it's too difficult for Willie, I'm sure we wouldn't object to someone else taking over!!
I thought IAG was Spanish based
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Old Dec 19, 2018, 2:05 pm
  #92  
 
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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.
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Old Dec 19, 2018, 2:10 pm
  #93  
 
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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!
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Old Jan 8, 2019, 11:26 pm
  #94  
 
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FT is casting doubt on IAG's plans for Brexit

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.
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Old Jan 8, 2019, 11:34 pm
  #95  
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And it is the lead story in today's Financial Times (Wednesday 9 January 2019):



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".
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Old Jan 10, 2019, 2:33 am
  #96  
 
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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
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Old Jan 10, 2019, 3:10 am
  #97  
 
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Seriously, how worried should those of us with EU to UK BA bookings post 29th March be?
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Old Jan 10, 2019, 3:19 am
  #98  
 
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Originally Posted by Jerseylily2
Seriously, how worried should those of us with EU to UK BA bookings post 29th March be?
How worried do you want to be? Just sit back and enjoy the ride.
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Old Jan 10, 2019, 3:31 am
  #99  
 
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Originally Posted by Jerseylily2
Seriously, how worried should those of us with EU to UK BA bookings post 29th March be?
Not very worried. This recent press is about whether IB (and Vueling, Level) are really EU airlines and can therefore fly around the EU.

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).
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Old Jan 10, 2019, 3:43 am
  #100  
 
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Originally Posted by Mutu
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
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.
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Old Jan 10, 2019, 3:47 am
  #101  
 
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Originally Posted by Mutu
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
UK government position about ownership rules has for a very long time been on the "relaxed" end and post Brexit I suspect the UK may wish to become completely relaxed, problem is everyone else isn't relaxed and as such the UK will have to comply with the wishes of the big players in the market...which would be the EU and the US.

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.
Only another 3 months to go.
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Old Jan 10, 2019, 3:57 am
  #102  
 
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Originally Posted by andrewr1985
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!
"Certain" in this sort of legislation is very common, to avoid saying "All licenses/carriers (in this case)" but also to avoid issuing a regulation with a fixed list of carriers that is hard to modify later. The UK uses this too in regulation and law (with a different phrasing).

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.
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Old Jan 10, 2019, 4:34 am
  #103  
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Originally Posted by Jerseylily2
Seriously, how worried should those of us with EU to UK BA bookings post 29th March be?
Slightly concerned, but not too much so. The official HMG line is here:
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.
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Old Jan 10, 2019, 5:27 am
  #104  
 
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Originally Posted by Worcester
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.
But not ownership rules. My point is, if its a big issue for IAG it is then also a big issue for other carriers. And in a no deal world, carriers would need to be British controlled to enjoy UK bilateral rights. So my point stands. It just seems the press are picking up on IAg and not on others who may be impacted
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Old Jan 10, 2019, 8:05 am
  #105  
 
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Originally Posted by Jerseylily2
Seriously, how worried should those of us with EU to UK BA bookings post 29th March be?
Probably not as worried as those of us EU nationals who live in the UK... I have a return BA flight LCY-NCE booked for just after Easter and I have no idea whether I will be able to go or not, even just for 4 days to see the parents, because as things stand I have no guarantees that I'll be allowed back into the UK, the country I've been living in perfectly legally and in good faith for nearly 26 years

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.
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