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By Laurence Frost
PARIS, Dec 7 (Reuters) - Airline group IAG is
confident of meeting all EU regulations relating to its
ownership British Airways, it said on Monday after the CEO of
rival Ryanair suggested it may have to jettison the UK
flag carrier after Brexit.
Ryanair boss Michael O'Leary believes IAG may have
to relinquish ownership of British Airways after Britain's
Brexit transition ends on Dec. 31, saying he expects France and
Germany to insist on strict application of EU rules demanding
that airlines must be at least 50% owned by EU nationals or risk
losing their operating licences.
"I cannot see how IAG can survive as an owner of BA in a
post-Brexit environment," the Ryanair CEO told an online
Eurocontrol event on Monday.
However, an IAG spokeswoman responded by saying: “We are
confident that we will comply with the EU and the UK ownership
and control rules post-Brexit transition period.”
IAG is a Spanish-registered company headquartered in Britain
and listed on both the London and Madrid stock exchanges.
In October IAG's chief executive told investors that the
percentage of non-EU shareholders was 39.5% in January but
declined to disclose the percentage of UK shareholders or
provide a more recent figure.
After the Brexit transition ends this month, UK shareholders
will no longer be treated as EU shareholders.
"I think it is likely there will be some breakup of the IAG
group, or BA will have to step outside the IAG group," O'Leary
said.
IAG, which also owns Iberia in Spain and Aer Lingus in
Ireland, has previously said contingency plans have been agreed
by relevant national regulators.
While O'Leary cast doubt over the shape the post-Brexit
shape of IAG, he does not expect Brexit to have much impact on
air travel in general.
"People will still move between Europe and the UK," he said.
O'Leary also tempered his previous optimism about the timing
of an eventual travel rebound. Ryanair still expects to lead a
strong recovery, “not necessarily in the summer of 2021, but in
the winter of 2021” and onwards, he said.
(Reporting by Laurence Frost
Writing by Sarah Young
Editing by David Goodman)
