Brexit: EasyJet creates new airline

News


14 Jul, 2017

Brexit: EasyJet creates new airline

The budget airline has set up a Brexit contingency plan and is in the advanced stages of creating a new company which will be headquartered in Vienna, Austria.

In order to continue flying to and from EU member states after Brexit, easyJet must apply for an air operator certificate in an EU member country.

As a result, easyJet is creating a new airline by the name of easyJetEurope, which will have its headquarters in the Austrian capital of Vienna at a cost of £10m. The company said that the application process was "well advanced" and that it hoped to receive the accreditation "in the near future".

The EU has an internal "open skies" policy which has enabled companies such as easyJet and Ryanair to grow to their present size. This could be threatened if the UK doesn't get a favourable Brexit deal.

However, Gatwick Airport will remain as easyJet's main UK base, whilst it also intends to maintain its Luton headquarters. The firm also gave assurances that none of its UK employees were at risk of losing their jobs as a result of this contingency plan.

"All of easyJet's UK employees will continue to be based in Luton and our 11 UK bases and employed as they are today", a spokesperson for the airline said.

"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".

EasyJet is a member of the FTSE100 share index of the largest UK-listed companies. Its founder, Sir Stelios Haji-Ioannou, holds a Cypriot passport and owns a 33% share in the business, along with his family. Today, the company currently has airlines based in the UK and Switzerland.

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