Ryanair recently disclosed that it has revised the terms of a $795 Million share buyback this week. This move would allow restricting repurchases that could control the holdings of British investors and ensure the firm remains mass EU-owned following Brexit.
In March 2019, Ryanair initiated contingency plans. These plans would limit the voting rights of British investors if the U.K. leaves the European Union without an agreement on potential relations. These plans would be applicable even if the U.K. leaves both the single market and the EU customs union in a “hard” Brexit situation. The latest restrictions are focused on ensuring Europe’s biggest low-priced carrier remains majority EU-owned to obey its licensing as well as flight rights. In a statement this week, the airline said that it is revising the terms of the arrangements to permit for shares to be repurchased from EU holders of shares by way of block trades.
On a similar note, this week, numerous airlines and regulators are coming together at a closed-door meeting in Montreal. This summit will be focused to exchange opinions on steps required for a coordinated and safe return of Boeing Co’s grounded 737 MAX planes back to the work after two deadly crashes. This meeting is organized by the International Air Transport Association (IATA). The meeting comes as airlines struggle with the monetary impact of a worldwide grounding of almost 400 737 MAX planes that has lasted about three months.
Boeing, the biggest planemaker in the world, has yet to officially submit updates on future 737 MAX software and training. These updates will be submitted to the U.S. Federal Aviation Administration (FAA). After this submission, the administration is supposed to kick-start the lengthy re-certification process. Alexandre de Juniac, Director General, IATA, said that at this meeting advancing coordination within a sector that grounded the MAX planes on diverse dates in March and shoring up reliance among regulators would be priorities.