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LONDON, Jan 4 (Reuters) - EasyJet has begun moves to
suspend the voting rights of some non-EU shareholders to comply
with post-Brexit airline ownership rules, the UK airline said on
Monday.
European Union rules state that EU airlines must be owned
and controlled by EU nationals or else lose their licences.
EasyJet has held an Austrian operating licence since 2017 to
retain its EU flying rights despite Britain leaving the EU.
But the airline is currently 52.65% owned by non-EU
shareholders, meaning it must make changes to meet EU rules
following the end of the Brexit transition period on Dec. 31.
By restricting voting rights, easyJet and competitors such
as British Airways owner IAG, Wizz Air and
Ryanair all hope to overcome the Brexit ownership
headache.
However, concerns persist that the compliance efforts may be
unsustainable or open to legal challenge by competitors.
The post-Brexit aviation pact includes no flexibility on the
treatment of UK shareholders but does acknowledge "potential
benefits of the continued liberalisation of ownership and
control", with a pledge to review the rules over the next year.
EasyJet said on Monday that investors from outside the EU
would be restricted to controlling 49.5% of its shares, and as
such it was sending out notices to shareholders holding more
than 3% of shares to suspend some of their voting rights.
"The voting rights suspension is being applied on a 'last
in, first out' basis such that the shares most recently acquired
by relevant persons will have voting rights suspended first,"
easyJet said in a statement.
The investor register will also be kept under review,
easyJet said, saying that if non-EU ownership remains over the
49.5% maximum for a sustained period it could start to force
those shareholders to sell their shares to EU nationals.
(Reporting by Sarah Young and Laurence Frost. Editing by Mark
Potter)
