EasyJet to set up Austrian HQ to operate EU flights after Brexit

EasyJet is to open a new European headquarters in Austria to enable it to continue to operate flights within the EU after Brexit.

The airline said it intended to establish a new airline, easyJet Europe, which would be headquartered in Vienna.

The carrier has been searching for a new operating licence from an EU country while uncertainty hangs over its business. Without the Austrian licence, easyJet would be unable to continue flights between other EU countries

The restructuring of the business, which will involve the re-registering of 110 aircraft under Austrian jurisdiction, is expected to cost at least £10m – although the overall costs of Brexit to the airline have run much higher, with currency devaluation alone hitting profits by £88m in 2016 and £82m in the first half of this year.

EasyJet still faces legal uncertainty over whether it will be able to fly between the UK and Europe, and on what terms, after Brexit. Ryanair repeated its warnings to the European parliament this week that there was a real prospect of no flights operating between the EU and UK for a period in 2019.

https://www.theguardian.com/business/2017/jul/14/easyjet-austria-eu-flights-brexit

A very sensible business precaution. easyJet operates point-to-point services between third countries, for example Rome to Malta or Frankfurt to Palermo, using British registered aircraft which is fine whilst Britain remains in the EU and might continue to be fine post-Brexit (aviation is one of the negotiating points). Even if Britain can not continue to participate in the open skies agreement, providing easyJet maintains some aircraft under the British registry and a base here (eg at Luton) then it should be just as able to operate routes between the UK and EU as now. The only difference being that its British-registered aircraft may not be able to fly between two EU countries.

Ryanair's aircraft are all registered in Ireland.

I think we can be reasonably confident that Britain will continue to participate in Eurocontrol and in the open skies agreement: the industry is far too important not to.

Doubtless EasyJet are also considering their tax position.