Brexit: easyJet seeks Austrian AOC to preserve traffic rights; highlights dark cloud over aviation

On 14-Jul-2017 easyJet said that it hopes to receive an Austrian AOC "in the near future" for a new subsidiary – easyJet Europe – to ensure intra-EU traffic rights post Brexit. Around half of easyJet's passengers come from the EU27 (the 27 countries of the EU once the UK leaves) and around 30% fly on intra-EU27 routes.

As the most exposed UK airline to a single European aviation market (ex UK), easyJet is right not to sit around waiting for regulatory clarity. Other airlines are also showing some signs of unease about the continued uncertainty. IAG has questioned the EU's ownership and control rules and Ryanair has mused over how to maintain EU majority control if UK shareholders are excluded from the definition. Wizz Air is even looking at a UK licence.

In Jan-2016 a CAPA report highlighted the uncertainties for aviation if the UK voted to leave the EU. It urged the UK government "to start planning for the exit the minute the referendum is concluded". Eighteen months later, there is no obvious sign of any progress towards the necessary EU-UK agreement on air services. The UK Transport Secretary still wants the "best possible access to European aviation markets", but is still not able to say how that can be achieved.

With no WTO style fallback option, an EU-UK agreement on aviation must be prioritised.

This CAPA Premium Analysis article is 3,266 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com