Brussels Casts Doubt On IAG's No-Deal Brexit Flight Plan
Brussels has warned Aer Lingus and British Airways owner International Airlines Group (IAG) that its favoured strategy to allow it to continue flying freely in and around Europe in the event of a no-deal Brexit will not work, the Financial Times reported this week.
After Brexit, European carriers will have to show they are more than 50% EU-owned and controlled to retain flying rights in the bloc, the Financial Times said.
IAG, which also owns the Spanish flag carrier Iberia, is registered in Spain but headquartered in the UK and has diverse global shareholders.
Trusts And Companies
The Financial Times said that part of IAG's strategy to retain both EU and UK operating rights is to stress that its important individual airlines are domestically owned through a series of trusts and companies, rather than being part of the bigger group comprising a high proportion of non-EU investors.
The Financial Times quoted an unnamed senior EU official as saying, "For IAG, I can't see how it can be a solution."
Concerns have been raised with IAG over its post-Brexit ownership structure, the Financial Times quoted a second Brussels official familiar with the conversations as saying.
IAG was not immediately available for comment.