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AIRPORT PICKUPS LONDON

Uk Airline Brexit Affect
27 - Mar - 2017

UK Airlines Will Have to Move to Europe to Continue Operating in the Continent-Says EU

The European Union has warned that UK airlines   may have to relocate their headquarters and sell off shares to EU nationals if they want to continue operating within continental Europe after Brexit.

Ryanair Chief Executive and prominent ‘Remain’ campaigner Michael O’Leary warned that flights between the UK and Europe might be significantly affected if the government opts for a hard divorce, which is likely, considering the latest revelations.

UK airline executives from EasyJet, IAG, British Airways’ owner, Ryanair and the Tui Group last week met the EU Brexit taskforce, where the announcement was made. They were warned that to continue operating on routes across Europe, they must have significant base on EU territory and a majority of their capital shares must be EU-owned.  This could lead to loss of jobs in the UK.

Airlines whose business models are built upon their access to routes across the EU are considering concentrating future growth in Europe, unless measures are taken to ensure continued access.

Aviation expert Thomas Van der Wijngaart from Clyde & Co while speaking to the Guardian warned of significant economic consequences for the UK. He said airlines could have to change their financial and operating structures and also pay keen attention to boosting their presence in Europe.

He said: “It might be that carriers choose to have domestic flights [on the continent] operated by their new European operating licence, which would probably mean a reduction in staff in the UK.”

On March 29, Prime Minister Theresa May is expected to trigger Article 50, officially initiating   the two-year Brexit negotiations between the EU and the UK.

By Airport Pickups London