IAG revamps board after Brexit deal, British Airways secures $ 2.7 billion loan
(Reuters) – Airlines group IAG has reorganized its board of directors to ensure a majority of independent non-executive directors come from the European Union and has rolled out plans to comply with economic bloc ownership rules after 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 recognizes the potential benefits of further liberalization of airline ownership and control, ”said President Antonio Vázquez.
Britain struck a trade deal on December 24 and set the terms of its new relationship with the EU following their divorce earlier this year.
The company also said British Airways received two billion pounds ($ 2.73 billion) as a five-year term loan, partially guaranteed by UK Export Finance.
The deal’s commitment has non-financial covenants, including restrictions on the airline’s dividend payments to IAG, the company said.
(1 USD = 0.7334 pounds)
Report by Samantha Machado in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur