EasyJet to protect itself post-Brexit with new European company

Share

easyJet said the people and planes that will fly for easyJet Europe are already employed and based in EU27 countries.

EasyJet said that with the new company structure, the LCC should become a pan-European airline group with three subsidiaries, which will be registered in Austria (easyJet Europe), and include existing easyJet Switzerland and easyJet UK.

Passengers board an airplane of low cost carrier easyjet in Belfast, Northern Ireland, Britain, 19 June 2013.

EasyJet has announced it will be setting up a European headquarters in Austria as well as a new airline to continue flying across the Continent after Brexit.

EasyJet said it is confident it will remain majority EU-owned after Brexit as founder Sir Stelios Haji-Ioannou and his family - who hold Cypriot passports - have 33% of shares. The airline has confirmed that although new jobs will be created in Vienna, no jobs will move from the United Kingdom to Austria.

The airline now bases around 100 aircraft and employs around 4,000 people across six European Union countries.

More news: Canaccord Genuity Reiterates "Buy" Rating for Intel Corporation (NASDAQ:INTC)

Operationally this means the airline will require a third callsign to match the aircraft that will now change to the Austrian registration.

In May, when it last provided an update on its Brexit plans, easyJet said that it had spent £1 million in the last six months on its post-Brexit relocation plans.

"That's an honor for Austria", Austrian Transport Minister Joerg Leichtfried said in a statement.

As a United Kingdom -based airline, easyJet now has the right to operate without restrictions across the European Union, but will lose this rights when the country exits the single aviation market unless a new open skies agreement is reached between the European Union and the U.K.by March 2019.

"The first talks with easyJets CEO Carolyn McCall had already taken place in October past year. this is a victory that was heavily fought for, but which is all the more handsome for Austria", Kern added.

Share