IAG Rejigs Board After Brexit Deal; British Airways Gets £2bn Loan
Airline group International Airlines Group (IAG) has said that it has revamped its board to ensure that a majority of independent non-executive directors are from the European Union and that it has rolled out plans to comply with ownership rules of the economic bloc following Brexit.
Its plan includes the implementation of a national ownership structure for Aer Lingus and changes to its long-standing ownership structure in Spain, IAG said.
"It is disappointing that it has become necessary to make these changes to the board. However, we are pleased that the EU-UK Trade and Cooperation Agreement recognises the potential benefits of further liberalisation of airline ownership and control," chairman Antonio Vázquez said.
Britain agreed a trade deal on December 24 and set out the terms of its new relationship with the EU following their divorce earlier this year.
British Airways Loan
IAG also said that British Airways has received £2 billion as a five-year term loan, partially guaranteed by UK Export Finance.
The deal commitment has some non-financial covenants, including restrictions on dividend payments by the airline to IAG, the company said.