IAG price soars as share restrictions are removed
Shares in Aer Lingus owner IAG soared by well over 5% after the airline owner lifted a restriction on non-EU investors’ ability to buy its stock.
Last year, IAG - which also owns British Airways and Spanish carriers Iberia and Vueling - set the maximum level for ownership of its shares by non-Europeans at 47.5% in a bid to maintain its status as a European-owned airline.
IAG said that non-EU ownership had dropped to 39.5% and, as such, it was removing the cap which had been in effect for 11 months.
Meanwhile, struggling British regional airline Flybe is, reportedly, in talks with the UK government about a loan on commercial terms that would not represent a bailout.
Ryanair and British Airways have attacked a UK government-backed support plan for Flybe, complaining that it prevents a level playing field and breaches state aid rules.
But Flybe’s boss Mark Anderson has, reportedly, told staff any government help would be made on commercial terms.
“We are in conversation with the government around a financial loan - a loan, not a bailout - a commercial loan, but that is the same as any loan we’d take from any bank,” he was quoted as saying.
The UK government has said that its support for Flybe does not breach EU rules on state aid.
Flybe was rescued from near-collapse on Tuesday, when its shareholders agreed to invest more money alongside a UK government support plan.
Details of that government support have not been made public.
Media reports say it involves the deferral of a passenger tax bill.
Flybe is owned by Connect Airways, a consortium created by Virgin Atlantic, Stobart Group and investment adviser Cyrus Capital.
-Reuters
