EasyJet continues to “stand ready” to activate a contingency plan of suspending shareholders’ voting rights in the event of a no-deal Brexit.
The UK budget carrier made the announcement today as it revealed that its EU ownership of 49.92% was still below the ‘50% plus 1’ share that will ultimately be required following Brexit.
New European Union regulations were adopted last week which gave airlines six months to comply with applicable EU ownership and control requirements following a no deal Brexit, provided that carriers submit acceptable remedial plans.
“Whilst the new EU regulations make it unlikely that the company will be required to take any immediate action to implement the permitted maximum or contingency plan in connection with Brexit, the timing of implementation – if required – will depend on the outcome of Brexit negotiations,” EasyJet said. “A further update will be provided in due course.”
The airline added that it planned to keep the EU ownership position under review following Brexit.
This could involve the carrier compelling non-EU shareholders to sell their easyJet shares to EU nationals.
Irish rival Ryanair revealed last week that is to bar UK residents from buying shares in the airline in a no-deal Brexit.
The move was designed to protect the no-frills carrier’s European operating licences after the UK leaves the EU.
The EasyJet announcement came as the EU agreed to postpone Brexit beyond March 29.
EU leaders offered to delay Brexit until May 22 if MPs approve prime minister Theresa May’s withdrawal deal next week.
The delay will be shorter – until April 12 – if the deal is not approved at which point the UK must set out its next steps or leave without a deal.
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