UK: EU gives airlines deadline for no-deal Brexit

Brussels is to give airline groups such as Ryanair and IAG, owner of British Airways and Iberia, a seven-month deadline to overhaul their shareholder make-up in order to retain full flying rights within the EU if Britain crashes out of the bloc without a deal next month. The tight adjustment period for airlines, which must show they are majority owned and controlled by EU nationals in order to have full rights to fly through the continent, is outlined in revisions to a draft law seen by the Financial Times. EU member states are broadly supporting the approach ahead of Britain’s scheduled departure on March 29th, although the EC n oted this week that Ireland, with Spain, France, Cyprus and Hungary, continues to express concerns about ownership rules. Aviation is a closely-regulated sector that faces a double blow from Brexit, since an abrupt UK departure from the EU would disrupt not only flying schedules but the licences that carriers currently use to operate, which are administered based on the nationality of shareholders. Senior EU officials say the proposed seven-month grace period is coupled with exacting requirements and deadlines, which would force carriers such as IAG and Ryanair, which also has a large number of UK shareholders, to potentially trigger forced-sales of shares by non-EU investors.<br/>