oneworld

IAG, the owner of British Airways and Iberia airlines, said Monday that it would cap ownership of its shares by non-Europeans at the current 47.5% level to maintain its status as a European-owned airline. Britain is due to leave the EU on March 29 but has yet to seal a withdrawal agreement, posing a potential risk to airlines that do not meet EU rules requiring European carriers to be majority-owned and operated in the bloc. Airlines that will no longer be majority owned by EU nationals once Britain leaves the EU face the threat of losing their right to fly within the bloc after Brexit due to share ownership rules. EC sources said that Brussels encouraged IAG and all airlines concerned to check with the national licensing authorities whether they would still meet the operating licence requirements in case of a "no deal" Brexit. IAG said it would suspend the voting rights of any shares acquired by a relevant non-EU person and require the owner to sell the shares to a third party or to the airline group itself. But IAG said that United Kingdom citizens would not be subjected to this buying cap.<br/>

Cathay Pacific is closing its cabin crew base in Toronto as part of a business review, potentially affecting 120 workers in the Canadian city. The Hong Kong-based airline is talking with the union to explore options for the employees, including opportunities in other locations, it said Tuesday in an emailed response to a report in the South China Morning Post. The company currently doesn’t have plans to close other bases outside Hong Kong, it said. Cathay Pacific is in the final year of a transformation program that started in 2017 after fierce competition from Chinese airlines and low-cost carriers led to losses in two consecutive years. The Hong Kong-based company is seeking to reduce HK$4b ($510m) in expenses after cutting 600 jobs at its main office and added more seats on some of its aircraft. <br/>