Brexit plot EXPOSED: France and Germany to unite in targeted attack on British Airways
British Airways aeroplane strikes tail while trying to land
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The move was highlighted by Ryanair chief Michael O’Leary who said officials and lobbyists from within the European Union are “gunning” for IAG. With the European Union bureaucrats awakening from the hiatus caused by the Covid pandemic, attention is once again being focused on post-Brexit Britain and how red tape in Brussels will affect the UK.
CEO of Ryanair Mr O’Leary said the reimposition of the rules, previously scheduled for later this month, but likely delayed by the Russian invasion of Ukraine, would provide Air France and Lufthansa the chance to weaken the position of IAG, the FTSE 100 company whose airlines also include Iberia, Aer Lingus and Vueling.
Mr O’Leary said: “IAG is the one the French and Germans are really gunning for.
“There is clearly a bashing up going on there at the European Commission, with the French and Germans looking for the break-up of IAG.
“The Spanish are trying to hold it all together.
“But generally at European level, whatever the French and Germans want, they get.
“I think it is inevitable BA will be forced out of IAG.
“IAG will become a Spanish/Irish group.”
Andrew Lobbenberg disagreed with IAG’s assertion it will satisfy the ownership and control rules.
The analyst, speaking to The Telegraph said: “National interests are ever-present in the airline industry, which is often the home for mercantilist policymaking.
“The commercial interests of Air France-KLM and Lufthansa would unquestionably be supported by adding new strategic challenges to IAG.
“The company could consider demerging its non-EU business of BA into a separate non-EU owned company, leaving the legacy business EU owned.”
A spokesman for IAG said: “We comply with the EU ownership and control regulation.
“Our EU airlines’ remedial plans were approved by the national regulators in Spain and Ireland, and the IAG Board has a majority of independent EU non-executive directors.”
The Ryanair boss also predicted a gloomy outcome for his rival budget airlines EasyJet and Wizz Air.
Mr O’Leary said: “I do not believe Wizz and easyJet will survive as independent airlines.
“I think they will either merge together and become one bigger, larger Airbus operator across Europe – or Wizz will merge with somebody like Lufthansa, and EasyJet will get taken out by BA or Air France.”
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British Airways is a significant player in the International Airlines Group alongside Iberia.
Formed in 2011, when the two flag carriers of the United Kingdom and Spain signed a merger agreement, both airlines became wholly-owned subsidiaries of IAG.
The Group has since expanded its portfolio of airlines with the acquisition of Aer Lingus and Vueling.
It also owns the Level brand as well as the Avios rewards program.
WILL BRITISH AIRWAYS BENEFIT FROM LEAVING IAG? HAVE YOU RECENTLY FLOWN WITH BA?… HOW WAS YOUR EXPERIENCE? HOW DO YOU ASSESS THE CURRENT BRITISH AVIATION INDUSTRY? LET US KNOW YOUR VIEWS BY CLICKING HERE AND JOINING THE DEBATE IN OUR COMMENTS SECTION BELOW – EVERY VOICE MATTERS!
Despite this resolute stance taken by IAG, one issue that remains a sticking point is IAG remains 25 percent owned by the state of Qatar.
Given this to be the case, it is estimated IAG remains 10-12 percent short of being majority EU-owned.
EasyJet has been approached by Express.co.uk for comment on the notion of a takeover.
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