British Airways parent company and Iberia airlines have stopped the sales of its stock to investors who are outside the European Union. The European ownership rules have dictated that more than half of its airline stock must be held by the shareholders that are to be based within the economic bloc.
IAG (International Consolidated Airlines Group) was at risk of breaching that level with 47.5 percent of shares now held by non-EU citizens. Qatar Airways holds almost half of the non-EU allowance with its 22 percent stake in the group. On Monday this week, the filing to the market was released. Shortly before midday London time on Tuesday, AIG’s stock was languishing toward the bottom of the FTSE 100, more than 1 percent lower.
The restrictions made on British Airways are likely to become even more complicated when Brexit is enacted at the end of next month, March. Since then, when the United Kingdom left the European Union, U.K. shareholders in the British airlines will no longer count toward the required 50 percent minimum EU ownership.
International Consolidated Airlines Group, Ryanair and easyJet could reportedly attempt to comply with the ownership rules by ensuring that when British investors sell stock, it is immediately bought by EU investors.