Monday, 27 June 2016

Brexit will have 'no material impact' – easyJet

HAVING joined the chorus of doom warning of, er, doom during the EU referendum, easyJet has expressed confidence that the UK’s Brexit vote will not have a ‘material impact’ on its low-cost strategy.

The airline says it had been preparing for this eventuality in the lead up to the referendum vote and has been working on a number of options that will allow it to continue flying in all of its markets.

easyJet’s initial focus will be to accelerate discussions with UK and EU governments and regulators to ensure that the UK remains part of the single EU aviation market. It would ensure that consumers continue to benefit from low-fares and would mean easyJet and other airlines can continue to operate as they do now.

However, easyJet admitted that it will also continue to develop ‘alternative options’ that will fully maintain its existing network and operations.

A statement said: ‘easyJet is confident that its unique network, digital leadership, cost advantage, and financial strength will enable it to continue to execute on its strategy and to deliver long term sustainable earnings growth and returns to shareholders.’

Says chief executive Carolyn McCall: ‘We remain confident in the strength of easyJet’s business model and our ability to continue to deliver our successful strategy and our leading returns. We have today written to the UK government and the European Commission to ask them to prioritize the UK remaining part of the single EU aviation market, given its importance to trade and consumers.’

Meanwhile, BMI Regional has warned that it might quit its UK base because of the uncertainty and complexity thrown up by the referendum vote to leave the European Union.

Peter Simpson, chief executive of the regional carrier, said: ‘The vote has created, first and foremost, a lot of uncertainty about the future of the UK, the EU, and Europe as a whole. For a business such as BMI Regional, being heavily influenced by the freedom of trade and traffic, this uncertainty will undoubtedly add a layer of complexity to our business. BMI Regional will keenly monitor developments over the coming weeks and months to assess the challenges and opportunities they will create for the business. It is, however, safe to say, that our continued business domicile as a UK entity is less than clear at this point in time.’

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