Low-cost flights will be affected by the free market exit

Published on : Wednesday, June 29, 2016

jetblue_3422025a-largeThe British citizens’ vote to exit the European Union is threatening the inexpensive air transportation in Europe, from and to United Kingdom after 20 years of enjoying the advantages of the free market, reports CNN Money

 

The low-cost companies are to be strongly affected by Brexit. Because of the leaving proceedings from the European Union, the United Kingdom finds itself unable to join the Open Skies agreement and therefore in need to negotiate the access to the single aviation market. The price that Britain could be forced to pay might be to accept the supremacy of EU regulations and possible air free movement of workers.
“We have written today to the U.K. government and the European Commission to ask them to prioritize the U.K. remaining part of the single EU aviation market,” EasyJet CEO Carolyn McCall said Friday.
EasyJet Chief executive Dame Carolyn McCall declared the company remained “confident” in the strength of its business model after Britain voted to leave the EU. Still, the same Dame Carolyn urged the European Commission to prioritize British airlines remaining part of the EU aviation area “given its importance to trade and consumers”.
In a statement on Monday, EasyJet stated that the operating environment in May and June for European airlines had been “extremely challenging”.
Low-cost companies’ shares have fallen sharply, some by more than 20% after the voters have chosen the Brexit. Furthermore, Europe should allow British operators access to the single market, but it is likely that the Europeans will obtain a higher cost. Meanwhile, competing companies such as Lufthansa and Air France could take the opportunity to restrict the powerful operators such as EasyJet, in the European area.

 

 

Source:- European

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