The final Brexit deal is forcing corporate changes in travel. Expect to see more.
Airline group IAG revamped its board to ensure a majority of independent non-executive directors are from the European Union and rolled out plans to comply with ownership rules of the economic bloc following Brexit, the company said on Thursday.
Its plan includes the implementation of a national ownership structure for Aer Lingus and changes to its long-standing ownership structure in Spain, IAG said.
“It is disappointing that it has become necessary to make these changes to the Board. However, we are pleased that the EU-UK Trade and Cooperation Agreement recognises the potential benefits of further liberalisation of airline ownership and control,” Chairman Antonio Vázquez said. Britain agreed a trade deal on Dec. 24 and set out the terms of its new relationship with the EU following their divorce earlier this year.
The company also said British Airways has received two billion pounds ($2.73 billion) as a five-year term loan, partially guaranteed by UK Export Finance.
The deal commitment has some non-financial covenants, including restrictions on dividend payments by the airline to IAG, the company said.
($1 = 0.7334 pounds) (Reporting by Samantha Machado in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
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Photo credit: British Airways' parent, IAG, has reconfigured its board in the wake of final approval of Brexit. Isaac Struna / Unsplash