EU officials have warned airlines, including Ryanair, easyJet, and British Airways, that they will have to move their headquarters or sell stakes to European nationals if they want to continue flying between the UK and mainland Europe after Brexit.
This comes amid Brexit and the announcement that UK Prime Minister Theresa May will trigger Article 50 on March 29. Consequently, UK-based companies could undergo restructuring and layoffs.
The EU’s tough message could encourage the UK to come up with its own set of rules, which will cause European-registered operators to face the same challenges as UK-registered companies.
Some airlines have already begun looking for alternative headquarters and calculating how they can ensure majority EU ownership, possibly by reducing British capital.
Other companies have maintained hope that there will be flexibility from the European Commission.
Source: Economica
Frequently Asked Questions
What must British airlines do after Brexit?
They must move their headquarters to the EU or ensure majority European ownership to maintain flight rights within the common European airspace.
Which airlines are affected by the EU warning?
Major operators such as Ryanair, easyJet, and British Airways are among the companies targeted by this warning.
When will Article 50 be triggered for Brexit?
Prime Minister Theresa May announced that Article 50 will be activated on March 29.