Brussels - The European Union gives airlines, seven months to adapt their ownership structures after Brexit.
All airlines within the European Union are ordered to set their shareholding structures accordingly by October 27, 2019. If a European airline's majority stake is controlled by British investors after that time, it will lose all associated benefits with the Union, such as the access to the EU open skies.
The new regulation is likely to affect the British airline operators, such as British Airways and easyJet, as well as Ryanair. Despite the low-cost carrier is registered in Ireland, it has a significant number of British investors and its shares are traded on the London Stock Exchange.
That plan shall set out, in a complete and precise manner, the measures intended to achieve full compliance with the [EU] ownership and control requirements as of the 27 October 2019 at the latest. Where the air carrier has not presented a plan within the [two-week] time limit, the competent licensing authority shall revoke the operating license,
British newspaper Financial Times reports.
Many airlines proceed to have both EU and UK AOCs for their subsidiaries to maintain their flight rights on both airspaces after Brexit. IAG, the parent company of British Airlines claims that it should keep its status as a European airline since it is registered in Spain.