The uncertainty in the aviation sector around UK Brexit talks could damage the economy and end up “constraining” route network development for airports, trade association ACI Europe has warned.
ACI has expressed concerns about the prospects of ongoing uncertainty over the rules that will come to govern aviation between the UK and the remaining EU member states.
“The ‘sequencing’ of the Brexit negotiations means talks will initially focus on agreeing exit terms for the UK, before they eventually come to define the new relationship between the UK and the EU27 as of 2019,” said ACI Europe director general Oliver Jankovec. “This implies that the aviation industry will be left in the dark for many more months to come about what will happen. Unless quickly resolved, this uncertainty will end up constraining route network development for airports, ultimately affecting air connectivity for their communities.”
He also cautioned about the economic consequences of the UK not remaining close to the European aviation market. “Failure to do so would mean the UK exiting the EU without the terms of its new relationship with the bloc being clearly defined. For aviation, this could well result in market access falling back on more restrictive bilateral provisions between the UK and individual EU27 States - with potentially disruptive effects on air connectivity and the economy.
He added: “As responsible businesses, at this stage we simply cannot rule out a cliff-edged scenario for Brexit and aviation. The potential impact of this on-air connectivity, consumers and the wider economy needs to be addressed by Brexit negotiators - on both sides. This means that adequate contingencies need to be established promptly in case the UK would exit the EU without any agreement on its future relationship with the bloc.”
‘Political posturing’
ACI’s comments are similar to warnings from reports that EU officials have said airlines will need to move base and majority of shareholders to fly routes within Europe.
The Guardian have reported that airlines including Easyjet and Ryanair have been warned they will need to relocate their headquarters or sell off shares to European nationals if they want to continue flying routes within Europe after Brexit.
Despite these warnings, American Express Global Business Travel, VP Northern Europe, Jason Geall, has urged calm and warned against speculation.
“Travel managers and business travellers, not to mention the airlines, will be naturally concerned to read [The Guardian] story,” said Geall. “It’s unclear what the consequences would be for passengers and corporates. However, it’s important to remember this is, for now, political posturing between the EU and the UK. There will be more before Article 50 is triggered on Wednesday, and for the duration of the negotiations.
“This won’t be the last newspaper article to raise concerns among the UK aviation and managed travel communities. We still have no idea what is going to happen across the board. While there is little value in speculation, it is, of course, vital that the industry – buyers, travel management companies and suppliers – maintain regular dialogue about issues that could affect it, whether it’s open skies agreements, freedom of movement and visa requirements or airline ownership,” he said.