Yahoo – AFP,
Roland JACKSON, July 14, 2017
EasyJet is preparing a post-Brexit soft landing, applying for a new air operator's certificate in Austria so it can keep flying in the European Union (AFP Photo/PASCAL PAVANI) |
London
(AFP) - British low-cost airline EasyJet charted a course on Friday to keep
flying unhindered across the European Union after Brexit.
The
carrier, which is based in Luton, north of London, said in a statement that it
will create a new division, EasyJet Europe, which will be based in the Austrian
capital, Vienna.
EasyJet,
which will retain its Luton headquarters, added that it has applied for a new
air operator's certificate (AOC) in Austria to continue flying across Europe
regardless of the final Brexit deal between Brussels and London.
The
accreditation process is "now well advanced" and it should be
concluded "in the near future", the no-frills carrier said.
The
application "will allow EasyJet to establish a new airline, EasyJet
Europe, which will be headquartered in Vienna and will enable EasyJet to
continue to operate flights both across Europe and domestically within European
countries after the UK has left the EU", the company added.
EasyJet
Europe will become the group's third airline division after EasyJet in Luton
and EasyJet Switzerland in Geneva.
Vienna was
picked because EasyJet had concluded that its airline regulator was "the
best fit" for the firm.
The switch
will create jobs in Austria, while no positions would be lost in Britain.
"While
the new structure will protect all of EasyJet's current flying rights within
Europe, EasyJet will continue to push for the UK and EU to reach an aviation
agreement which, at a minimum, will enable flights between the UK and EU,"
the statement added.
Austrian
Chancellor Christian Kern hailed the announcement as "tremendous news for
Austria".
The stock
market largely shrugged off the news, with the share price edging just 0.1
percent lower to 1,407 pence compared with Thursday's closing level.
"Investors
would most probably take as a given that EasyJet would address this
successfully as it has no other choice," independent aviation analyst John
Strickland told AFP.
"With
the conclusion of the AOC process in Austria, EasyJet will secure its rights to
operate intra-EU flights in a post-Brexit world.
"These
are a strategic and essential part of its business."
Oanda
analyst Craig Erlam added that the development had removed any uncertainty over
the matter.
"Investors
are underwhelmed simply because they expected a resolution to be found and it's
been done very early on," Erlam said.
Soon after
Britain voted in a referendum a year ago in favour of exiting the EU, EasyJet
applied for a European Union licence to keep flying throughout the bloc.
Britain's
airline industry has soared over the last two decades under the Single European
Sky system, which lifted trade restrictions on EU airlines.
Unless
British negotiators manage to secure preferential conditions, British airlines
could lose this status once the country leaves the EU.
This will
mean they no longer enjoy rights including being able to freely set airfares,
and to launch any route in Europe without getting prior authorisation.
Passengers
leaving or arriving in the United Kingdom will face new taxes and British
airlines face obstacles and delays in developing new routes.
Britain
will leave the EU in March 2019 after voting in a shock referendum last year in
favour of its departure.
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