May 7, 2021

Zambia Business Times

Your Financial News

Iberia Pending Another Pact To Fly Without Problem In EU

2 min read

Iberia, pending another pact to fly without hindrance in the EU. The European Commission and the United Kingdom will explore liberalizing property requirements

The agreement between the EU and the United Kingdom does not contemplate an open skies pact: as expected, British airlines will not be able to cover routes between two points in European airspace, and vice versa.

Thus, the obligation for airlines to be owned by more than 50% of community shareholders is maintained in order to retain flight rights within the EU as community companies. But the door is left open for both airlines to continue flying as before if the parties so decide.

A possible relief for Iberia or Vueling, which by being part of IAG have a large non-EU shareholder base and which, like the Irish Easyjet, can lower the 50% threshold by excluding the British.

“The parties agree to examine […] options for reciprocal liberalization of ownership and control of their airlines within 12 months of the entry into force of this agreement.” Pedro Sánchez said on the 11th that “there would be no problem for Iberia to be able to operate in European airspace after the United Kingdom left the EU” because “the problem is solved.”

The agreement between the EU and the United Kingdom does not contemplate an open skies pact: as expected, British airlines will not be able to cover routes between two points in European airspace, and vice versa.

Thus, the obligation for airlines to be owned by more than 50% of community shareholders is maintained in order to retain flight rights within the EU as community companies. But the door is left open for both airlines to continue flying as before if the parties so decide.

A possible relief for Iberia or Vueling, which by being part of IAG have a large non-EU shareholder base and which, like the Irish Easyjet, can lower the 50% threshold by excluding the British.

100% of the political rights in Iberia are in the hands of El Corte Inglés through the company Garanair. IAG also limited the capital in the hands of non-EU investors to 47.5%. Safeguards that an eventual agreement would make unnecessary.

On the other hand, the agreement will allow the free transit of trucks to load and unload goods from one block to another, but limits the ability to make several stops.

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