British Airways could send its bosses to work in SPAIN

BRITISH Airways could be forced to break itself up or move senior staff to Madrid if Britain leaves the EU without a deal, it was claimed yesterday.

Owner International Airlines Group (IAG) is battling to persuade officials in Brussels that it does not need to restructure its business to continue flights across the EU, as Brexit talks enter their final stages.

IAG, based in London but registered in Madrid, is hoping to convince bureaucrats that it does not fall foul of EU ownership and control rules for airlines.

For an airline to operate routes within the EU under the Open Skies Agreement, it must show that it is owned and controlled by EU nationals, with at least 50 per cent of its shares held by companies, pension funds and individuals based in the bloc.

There are concerns that once UK shareholders are stripped out after March 29, when they cease to be classed as EU nationals, IAG might fall below this threshold.

Unless Brussels softens its stance, analysts have warned IAG could be forced to spin off part of the group or buy out other non-EU shareholders to maintain its EU flying rights.

Brian Havel, a professor in aviation law at the University of Oxford, says IAG ‘could not exist in its current form’ after Brexit.

An IAG spokesman said it had ‘no plans’ to relocate its management, adding: ‘We are confident that we will comply with the EU and the UK ownership and control rules post Brexit.’