Brussels rules strip UK investors of voting rights in key airlines
Ryanair and Wizz Air are being forced to strip British shareholders of their voting rights because of Brussels rules on airline ownership.
The two budget carriers must follow a regulation which requires the majority of their shares to be controlled by investors in the European Union.
At present, they will fall short of this target when the Brexit transition ends because so many shareholders are based in the UK. The pair could lose operating licences to fly across Europe if they fail to comply.
Ryanair will treat all shares held by non-EU nationals as "restricted" from Jan 1, meaning these investors will not be allowed to attend, speak in or vote at company meetings.
The limits will remain in place for as long as the Dublin-based airline's licences are at risk, bosses said.
Investors will not be required to sell their shares.
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Hungary-registered Wizz said that 80pc of its stock is likely to be affected.
EasyJet stripped non-EU shareholders of their rights last week, saying that 47pc of the company is owned by nationals in the bloc at present.
It is operating a “last in, first out” system for taking away non-EU shareholders’ rights.
The EU rules are not expected to have any impact on airlines’ flying schedules.
Other carriers likely to be affected include British Airways parent IAG, which also operates Iberia and Aer Lingus.
