Wednesday, July 6, 2016

EasyJet Prepares for Life After Brexit

British low-cost carrier easyJet has been the first airline to publicly discuss how its business plans are being affected by last month's referendum vote for the United Kingdom to leave the European Union. The carrier will start by seeking an Air Operating Certificate (AOC) from an EU Member State. While most experts believe the UK will attempt to find a way to remain a part of the European Common Aviation Area in order to preserve unrestricted traffic rights for its carriers between any two EU cities, easyJet understandably wants to protect itself from possible loss of access to these markets. Reports last week also revealed that if the UK cannot successfully recreate its current relationship with the EU with regard to air transport services, easyJet is contemplating moving its official headquarters out of the UK as well. EasyJet has denied that will happen and sounds prepared to keep a significant portion of its operations based out of the UK in any future scenario. The carrier's stock price has suffered a substantial decline since the referendum vote two weeks ago.

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