Brexit Crisis Averted? EU Agrees On Continuing Air Service

After the people of the United Kingdom voted to leave the European Union in March of 2019, a lot of industries around the world faced uncertainty. Nobody knew what was going to happen to their businesses. Nor do they do right now, as nothing is certain on how the UK will exit the European Union.

Including the aviation industry. A lot of strict laws surround air travel. Numerous agreements between countries on safety, visa regimes and open skies deals have shaped airline business throughout the 20th and 21st centuries.

Namely, the issue with no-deal Brexit was this – every deal that Britain had with other countries around the world was done under the EU flag. Meaning that if the United Kingdom were to leave the European Union, all of those deals would be voided.

However, the European Parliament and Council have come to an agreement with the European Commission‘s proposal. The proposition allows the airspace between the UK and EU to operate as normal, even in the event of a No-deal Brexit.

Though the agreement is still provisional.

Potential consequences

If the UK government doesn’t reach an agreement with the EU Parliament, the consequences would be catastrophic.

As we already covered the potential consequences in a previous article here, we’ll try to be as short as possible.

To sum up, Brexit already hit airlines hard. On average, they lost 33% value of their shares. easyJet set up shop in Austria and established easyJet Europe. Ryanair and Wizz Air have done the same, except they set up their subsidiaries in the United Kingdom, namely Ryanair UK and Wizz Air UK respectively.

Airlines such as Flybmi and Monarch have declared bankruptcy and are gone off the map completely. Monarch Airlines declared bankruptcy in 2017 Monarch Airlines declared bankruptcy in 2017

No-deal Brexit will cancel any standing agreements with countries outside the European Union. Although, the British government has already made deals with Canada, Switzerland and the United States to carry air traffic on if a no-deal Brexit happens.

Nevertheless, the British need to make a lot more deals to cover a no-deal Brexit. If not, simply put airlines will have to ground a very significant number of flights to countries outside of the already made open skies agreements and the European Union. That would lead to more airlines being on the potential entrée list to join the Bankrupt Airlines club.

Likewise, even with a proper Brexit deal, IATA has predicted a drop in passenger numbers in the United Kingdom. British Carriers Will Feel The Negative Impact of a no-deal Brexit British Carriers Will Feel The Negative Impact of a no-deal Brexit

European Parliament and Council and European Commission Agreement

At the end of the last year, the European Commission laid out a proposal to the European Parliament and the European Council. The proposal is about the continuation of air traffic between the UK, EU and other countries around the world.

Of course, the proposal specifically covers the scenario of a no-deal Brexit and is only there to protect the European Union, its passengers and airlines operating within the EU from any significant damage.

Commissioner for Transport, Violeta Bulc is positive about the agreement. She said the following:

"Basic air connectivity between EU and UK airports will be ensured, provided that the UK gives the same treatment to EU airlines. This means that EU passengers will still be able to travel by plane in case of a ‘no-deal' Brexit. However this in no way replicates the significant advantages of the EU's single market.”