BREXIT BATTLE: Iberia airline FIGHTS for Spanish identity amid no-deal chaos
SPANISH airline Iberia intends to fight to to keep its “Spanish” character if the UK leaves the European Union without a deal this March.
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In a No Deal Brexit scenario, airlines that do not have majority control of their companies in EU countries could lose the right to operate within it. The International Airlines Group (IAG) is the product of a merger between British Airways and Iberia that was finalised in 2011. British Airways shareholders have 55 percent ownership of the company.
IAG and Iberia have been trying to negotiate with Brussels to be be able to retain their flight permits within the EU.
To do this the EU requires companies in the flight sector to prove they have at least 51 percent control in EU countries.
IAG has tried to show that more than 50 percent of Iberia’s political rights are in the hands of El Corte Ingles, which is Spain’s department store group.
The company also claims that because Iberia’s headquarters are in Madrid that it makes the airline Spanish.
To prove this IAG presented evidence of the complex corporate structure that was made to finalise the merger between Iberia and British Airways.
This merger split Iberia’s financial rights, which is 100 percent owned by IAG, from its political rights, which is 50.1 percent in the hands of Garanair.
Garanair is now owned 100 percent by El Corte Ingles.
Theoretically it controls 50.01 percent of the airline’s political rights and it does share its headquarters with El Corte ingles in Madrid.
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The intricate plan was drawn up to “shield the company’s Spanishness”, Spanish newspaper El Pais reports.
“IAG is a Spanish company (its registered office is in Madrid whereas its head office is in London) and our group’s airlines have had the necessary operational certificates since our establishment.”
Additional reporting by Maria Ortega.