EasyJet suspends some voting rights to meet post-Brexit rules

EasyJet has begun moves to suspend the voting rights of some non-EU shareholders to comply with post-Brexit airline ownership rules, the UK airline said on Monday. EU rules state that EU airlines must be owned and controlled by EU nationals or else lose their licences. EasyJet has held an Austrian operating licence since 2017 to retain its EU flying rights despite Britain leaving the EU. But the airline is currently 52.65% owned by non-EU shareholders, meaning it must make changes to meet EU rules following the end of the Brexit transition period on Dec. 31. By restricting voting rights, easyJet and competitors such as British Airways owner IAG, Wizz Air and Ryanair all hope to overcome the Brexit ownership headache. However, concerns persist that the compliance efforts may be unsustainable or open to legal challenge by competitors. The post-Brexit aviation pact includes no flexibility on the treatment of UK shareholders but does acknowledge “potential benefits of the continued liberalisation of ownership and control”, with a pledge to review the rules over the next year.<br/>