British Airways has appealed to the Spanish Government for support in the event of a no-deal Brexit.
The International Airlines Group (IAG) has asked for Madrid’s help in its campaign to retain operating rights in the event that Britain crashes out. In an attempt to prove to Brussels that its complies with the airline ownership rules, the BA has been in talks with the Spanish government for at least a month.
Why is a no deal so bad for airlines?
A no-deal scenario could jeopardise operating rights for airline carriers that don’t meet EU ownership rules. These rules require European operators to be majority owned and operated in the bloc.
IAG, which is the parent company of Spain’s Iberia also, has diverse global shareholders. However, after Brexit, the UK shareholders will no longer count towards the require 50% minimum of EU regulation, casting doubt on their operating rights post-March 2019.
This is one of in a long line of businesses to appeal for help, which raises the fears of their survival in the event that Britain walks away with no deal in the coming weeks. And with only 5 months left before Britain leaves the EU, and still no deal from the Prime Minister, the reality of a no-deal is increasing each day.
IAG did not comment directly, but a spokesperson told Reuters that the airline was confident that a UK EU deal, would reach a comprehensive air transport agreement.