Just had this message a couple of times:
Due to share transactions among our direct or indirect shareholders our legal home country has changed. This greatly influences our traffic rights which is why you should immediately check our routes for the possible loss of transport or even operating rights.
Sincerely,
your Legal Department
How can I find out what’s changed?
You will see the new legal home country on the overview page of the airline. Check traffic rights for that country and see which if your routes does not fulfill that criteria.
Generally, if in EU, should not be a problem.
BUT, what has happened to your airlines equity? Surely, if there is a change in shareholdings significant enough to change the legal home country, there is a change in ownership too - unless all (or most) of the minority shareholders are from a different country!
That’s what I don’t understand. I hold 80% share but I still get this message and nothing seems to have changed on the overview page.
hmm. contact support.
support@airlinesim.aero
Have you noticed a change in loads for upcoming flights?
Don't worry. That is a miss-information from the system. As long as you have the majority of the shares everything is :)
This side-effect of a recent bugfix has been reported by several persons an I will be looking into the issue as soon as I get to it (very busy right now). The problem is "cosmetic" though...no actual change in ownership or legal home country took place. If your stock isn't traded or you own a majority, there's nothing to worry about.
But what if the majority of shares is owned by foreigners? Will it be affected if the airline is based on a restricted market?
Sorry to brought this up, but really need your help.
My question is simple. Let me illustrate it first:
Me: Indonesian airline.
Tookover 99,99% of a Hungarian airline in an IPO.
I get this message above.
And I can start controlling this airline.
1. This particular airline, does it still hold the traffic rights of Hungarian (which also followed by European traffic)?? Or should I start moving all the flights to Indonesia?
2. If I buy that 00,01% of shares from the last airline who still own it, to make it 100%, will it be a fully owned subsidiary of mine? Which leads me to the question of: can i transfer fund to this airline through aircraft transfer?
I was almost sure about the answer of these questions, until Rainer said it was just a mis information. And what martin said confused me more.
Please help me.Thank you.
If it is publicly traded and even if you own full 100% you will not be able to transfer money.
A feature request has been placed to take company private when you are a 100% shareholder (or say 99%, as some oddball with 10 shares may try to block you going private, e.g. your competitor), but this is not implemented yet (and may never be). But it has been suggested.
You must differentiate between getting 99% of IPO shares (which only account for 20% of total shares of the airline, 80% will still be owned by original holding) or 99% of ALL shares of the airline.
If you just got 99% of shares offered in an IPO, you will NOT have control of the airline if the original holding still owns 80% of the TOTAL shares (because in fact you will only own 19.2% of total shares).
If you own 99% of total shares, you will be in control and traffic rights will change to your home country. In such case, you will no longer get bookings for flights originating in EU and you will only be able to operate flights to/from Indonesia.
You must differentiate between getting 99% of IPO shares (which only account for 20% of total shares of the airline, 80% will still be owned by original holding) or 99% of ALL shares of the airline.
If you just got 99% of shares offered in an IPO, you will NOT have control of the airline if the original holding still owns 80% of the TOTAL shares (because in fact you will only own 19.2% of total shares).
If you own 99% of total shares, you will be in control and traffic rights will change to your home country. In such case, you will no longer get bookings for flights originating in EU and you will only be able to operate flights to/from Indonesia.
Your stock portfolio page, as well as the stock’s information page, both list your total ownership of the company. If either of those pages says 99%, then you truly own 99% of shares and have direct control of the company.
It takes a specialized set of conditions for a company to be controlled by a foreign company whilst retaining passenger traffic rights. In this case, for an Indonesian airline to have control of a Hungarian subsidiary and retain traffic rights, at least 51% of shares must be owned by two or more Hungarian companies, with no party having a larger share than the Indonesian airline. (i.e. Hungarian company A owns 33%, Hungarian company B owns 33%, Indonesian company owns 34% - because 66% of the subsidiary is still owned by Hungarians and 34% by Indonesians, the Indonesian company has operating control due to the largest share, but the subsidiary retains Hungarian traffic rights because the majority of total shares are owned by Hungarians.)
However, ownership and traffic rights only applies to the passenger market. Cargo traffic uses a different ruleset. An Indonesian company owning more than 51% of a foreign airline in a country closed to foreign investment has just bought themselves a potentially viable cargo carrier.
Thank you for the answer. I am fully understand about how many shares I owned in this subsidiary, as I am having a full control of this airline. It is actually 99,99% because there is one share left to a swiss airline.
Thus, I conclude that this airline is fully Indonesian and have all the traffic in Indonesia. The flag in my holding overview page says it is Indonesia, but the flag in holding profile (which has a list of subsidiaries) still says it is a Hungarian. This was the one that confuse me.
So, please correct me:
This airline can "really" get passenger if it flies in Indonesian traffic rights? I mean, both domestic within Indonesia and all international from and to Indonesia?
(There's still a data said: country: HUNGARY, legal home country: INDONESIA, in overview page of this airline.)
Another thing that I have noticed:
Several of the staffs are not required to work, such as check in, ramp, flight planning, costumer service, and network planning. If I finally moved all the flights to Indonesia, I will still get these staffs, won't I?
yes; your company now has Indonesian traffic rights and no longer has Hungarian traffic rights.