Wizz Air CEO says shareholder vote curbs meet post-Brexit rules

The boss of Wizz Air said stripping voting rights from the majority of his investors was a sustainable way to meet post-Brexit rules, even as a leading sector analyst said it may not be enough unless there was a regulatory change. Under EU rules, EU airlines must be owned and controlled by nationals from the bloc or aligned European Economic Area (EEA) countries, or lose their licences. UK investors were deemed non-EU from Jan. 1, meaning some airline groups must act to stay compliant. Those most affected - Wizz, Ryanair easyJet and British Airways-owner IAG - have restricted voting rights or introduced other measures, such as board changes, to try to meet the EU control requirement. “Personally I think this is a sustainable proposition,” said Wizz CEO Jozsef Varadi, when asked in an interview about the airline’s decision to disenfanchise the owners of about 60% of its shares. But HSBC analyst Andrew Lobbenberg said in a note on Thursday the issue was unresolved and forced share disposals or corporate restructurings may be needed without a subsequent deal to loosen ownership rules.<br/>