British-owned airline Iberia could lose its right to operate in the European Union after the United Kingdom officially leaves the bloc on March 30, 2019,

If the British Parliament does not ratify the Withdrawal Agreement, a no-deal Brexit could spell trouble for British-owned airline Iberia. It could lose its license to operate in Europe.

According to the European Commission, airlines that fall below the 51% threshold for EU ownership will not be able to operate within Europe if no Brexit deal is signed.

As reported by Spain’s newspaper El País, Iberia is owned by International Airline Group (IAG), which is also the parent group of British Airways and Vueling. In this case, the Spanish airline may be prevented from flying in Europe and even within Spain if no Brexit deal is reached.

Sources from the company appear unfazed by the warning and say they are negotiating with EU authorities and have the support of the Spanish government.

Cancelling the operating licenses of British airlines within Europe will have less impact as they only cover 19.3% of demand, according to the European Commission. This is not the case with Iberia since the Spanish division of IAG, covers a large part of the Spanish market and withdrawing its license could leave the country almost completely without domestic flights