Help Help Help Serious Issue!

I have just taken over air barcelona, but my enterprises home country is the US, and Air barcelona's is spain! what can I do! I have been sent a message about traffic rights, can I get passengers anymore? help!

Shedule flights in the US … or Cargo flights

You won't get any bookings now with Air Barcelona in Spain, you have a few options:

  • As suggested already schedule flights in the USA to complement your other airline.
  • Sell shares so you don't control Air Barcelona anymore.
  • See if you can get enough Spanish airlines to buy other shares so that the total owned by Spanish airlines is greater then your shares but with you having the single largest amount of shares so that you still control Air Barcelona.

... See if you can get enough Spanish airlines to buy other shares so that the total owned by Spanish airlines is greater then your shares but with you having the single largest amount of shares so that you still control Air Barcelona.

Hi,

if you allow me to be more specific...

At least half of the shares must be in Spanish hands if you want the airline to be "Spanish". That will allow the airline to fly domestic flights, flights within the European Union, and flights to destinations outside the European Union.

An example of a legitimate construction: two Spanish airlines each own 30% of the shares, you own 40% of the shares. In this case, the majority of the shares (60%) are in Spanish hands, so the airline is legally Spanish. You own 40% of the shares, so you are the biggest share holder and in control of the airline.

Mind you, this is a fragile construction. If one of the Spanish share holders sells 11% of the shares to the other Spanish share holder, you loose control of the airline. If one of the two Spanish share holders sells 11% of the shares to a foreign airline, the airline will loose its Spanish traffic rights.

The simplest solution is what Kahael suggested. Return the current fleet and lease cargo planes, or schedule passenger flights in the USA.

Jan

Sometimes it’s wise to think before taking over a company…

Also one correction: you can't operate domestic flights in the U.S. with a Spanish company owned by a holding in the U.S. - the only passenger traffic rights your new enterprise has, are between Spain and the U.S.

So unless you always wanted a cargo company, this acquisition is probably very useless... and voeni is right ;)

I've sold the shares back to the Spanish owner, he has control of the company again. I still own the second largest amount. He wants to get rid of this enterprise anyway. The only option is to create a spanish enterprise and buy the shares back to take control, would that be against the rules though?

Won't work, because any company you found in Spain, will still have the U.S. as its legal home country.

At least half of the shares must be in Spanish hands if you want the airline to be "Spanish". That will allow the airline to fly domestic flights, flights within the European Union, and flights to destinations outside the European Union.

No.

It doesn´t have to be "half of the shares", a simple mojority is enough.

So if there is a company with shareholders from the countries A(11%) B (10%) C (10%) D(10%) E(10%) F(10%) G(10%) H(10%) I(10%) and J(9%)

this company would have the traffic rights of country A

Also one correction: you can't operate domestic flights in the U.S. with a Spanish company owned by a holding in the U.S. - the only passenger traffic rights your new enterprise has, are between Spain and the U.S.

So unless you always wanted a cargo company, this acquisition is probably very useless... and voeni is right ;)

Don´t think so, not sure about this, but I think you could operate domestic US flights in this case.

The home country of an enterprise doesn´t really matter, only the legal home country is of interest, and in that you always have full traffic rights.

I think this was different years (or was it ages) ago :-)

No.

It doesn´t have to be "half of the shares", a simple mojority is enough.

The definition of simple majority is anything over 50%.

Don´t think so, not sure about this, but I think you could operate domestic US flights in this case.

The home country of an enterprise doesn´t really matter, only the legal home country is of interest, and in that you always have full traffic rights.

I think this was different years (or was it ages) ago :-)

This is not the case and I don't believe it has been the case since I started 3 years ago. A Spanish company will never have rights to carry domestic passengers in the US.

Hi,

there is a huge difference between half + one of the shares, and 11% of the shares (the biggest share holder) if you talk about legal traffic rights. Yes-No discussions are pointless, so perhaps somebody from the AS team can tell us how many shares need to be owned by Spanish airlines for an airline to have Spanish traffic rights.

And Spezialist has already pointed out that a Spanish airline - whoever owns the shares - can never have passenger traffic rights in the USA. As he is a team member, I take his word for it.

Jan