By Laurence Frost PARIS, Dec 7 (Reuters) - Airline group IA
By Laurence Frost
PARIS, Dec 7 (Reuters) – Airline group IAG ICAG.L is assured of assembly all EU laws regarding its possession British Airways, it stated on Monday after the CEO of rival Ryanair RYA.I urged it could should jettison the UK flag provider after Brexit.
Ryanair boss Michael O’Leary believes IAG ICAG.L could should relinquish possession of British Airways after Britain’s Brexit transition ends on Dec. 31, saying he expects France and Germany to insist on strict utility of EU guidelines demanding that airways should be no less than 50% owned by EU nationals or danger shedding their working licences.
“I can’t see how IAG can survive as an proprietor of BA in a post-Brexit surroundings,” the Ryanair CEO advised a web-based Eurocontrol occasion on Monday.
Nevertheless, an IAG spokeswoman responded by saying: “We’re assured that we’ll adjust to the EU and the UK possession and management guidelines post-Brexit transition interval.”
IAG is a Spanish-registered firm headquartered in Britain and listed on each the London and Madrid inventory exchanges.
In October IAG’s chief govt advised buyers that the proportion of non-EU shareholders was 39.5% in January however declined to reveal the proportion of UK shareholders or present a newer determine.
After the Brexit transition ends this month, UK shareholders will not be handled as EU shareholders.
“I feel it’s seemingly there shall be some breakup of the IAG group, or BA must step exterior the IAG group,” O’Leary stated.
IAG, which additionally owns Iberia in Spain and Aer Lingus in Eire, has beforehand stated contingency plans have been agreed by related nationwide regulators.
Whereas O’Leary forged doubt over the form the post-Brexit form of IAG, he doesn’t count on Brexit to have a lot influence on air journey usually.
“Folks will nonetheless transfer between Europe and the UK,” he stated.
O’Leary additionally tempered his earlier optimism concerning the timing of an eventual journey rebound. Ryanair nonetheless expects to steer a robust restoration, “not essentially in the summertime of 2021, however within the winter of 2021” and onwards, he stated.
(Reporting by Laurence Frost Writing by Sarah Younger Modifying by David Goodman)
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