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Will the Brexit make easyJet fly away?

Monday, July 4, 2016

UK: In the wake of the result of the EU referendum, budget airline easyJet have announced their intention to focus their efforts on the UK remaining a part of the single aviation market.
Otherwise known as the ECAA (European common aviation area) it allows for airlines to fly to and from member states with ease and is widely considered responsible for the age of cheap air travel.
easyJet campaigned for the UK to remain in the EU and made no secret that they want to be at the forefront of discussions regarding the UK’s future as a part of the aviation market now the votes have been counted.
A move which could see the passenger rights of those flying to and from the UK remain as they are.
The budget carrier has already announced that it expects profits for the second half of the year to be down, with a potential increase of fuel prices adding 25 million Euro to their operating cost.
Although the airline is focused on regulatory discussions, it is still investigating alternative options to ensure it maintains its current network.
The carrier has previously stated that it was looking at other options such as basing itself outside of the UK. If the company set up a holding company in an EU country, it would then, in theory, be able to apply for an air operator's certificate (AOC) and operate as a part of the ECAA.
The budget airline announced that it would keep it's staff based at Luton, the airlines home for 20 years, but it would be based there as a subsidiary of a foreign country.
In a statement the airline said, "EasyJet has been preparing for this eventuality in the lead up to the referendum vote and has been working on a number of options that will allow us to continue flying in all of our markets."
This follows British Airway's announcement that it no longer expects to generate an absolute operating profit similar to 2015 due to the referendum result.

Written by: Team