Germany and France will capitalise on post-Brexit rules to force British Airways to be spun-off as a standalone airline, the chief executive of Ryanair has claimed.

Michael O’Leary said that politicians and lobbyists in the Eurozone’s two biggest economies are “gunning for” IAG, the FTSE 100 airlines group that owns BA

After a hiatus of more than a year, Brussels officials are now reviewing how so-called ownership and control regulations will be applied.

Prior to Brexit, airlines operating within the EU needed to demonstrate that they were “owned and controlled” from member states. The rules were suspended after the UK left the European bloc, with both sides agreeing to talks over a new post-Brexit regime.

Brexit means that UK shareholders are no longer included in the EU ownership count. With a quarter of BA parent IAG owned by Qatar, it means that the UK flag carrier could be in breach of the rules when they are brought back into force. 

The rules are complicated and open to interpretation, however. IAG insists it is already compliant by virtue of its Madrid-based board structure.

Brussels officials wrote to airlines prior to Christmas last year, asking them about how they would comply with the rules.

Mr O’Leary said that the reimposition of the rules, previously scheduled for later this month, but likely delayed by the Russian invasion of Ukraine, would provide Air France and Lufthansa the chance to weaken the position of IAG, the FTSE 100 company whose airlines also include Iberia, Aer Lingus and Vueling.

He said: “IAG is the one that the French and Germans are really gunning for. There is clearly a bashing up going on there at the European Commission, with the French and Germans looking for the break-up of IAG.

“The Spanish are trying to hold it all together… But generally at European level, whatever the French and Germans want, they get.

“I think it is inevitable that BA will be forced out of IAG. IAG will become a Spanish/Irish group.”