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Pin to quick pickseasyJet Share News (EZJ)

Share Price Information for easyJet (EZJ)

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Share Price: 536.20
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UPDATE 1-easyJet says no decision on HQ until knows UK's new deal with EU

Fri, 01st Jul 2016 14:22

(Adds information on AOCs in other countries, other carrierswith multiple AOCs)

LONDON, July 1 (Reuters) - EasyJet said it will notdecide whether to relocate its legal headquarters untilBritain's new relationship with the European Union is clear,following a report on Friday which said its CEO had suggested amove from the UK was almost inevitable.

A spokesman for the British budget airline, responding to aSky News report which also said easyJet has opened talks with EUmember states' aviation regulators about relocating itsheadquarters, said easyJet wants to prepare for alleventualities.

The report said easyJet Chief Executive Carolyn McCallsignalled in private meetings this week that it would need tomove its legal HQ in the wake of Britain's vote to leave the EU.

EasyJet is likely to be the European carrier most affectedby a formal Brexit because it needs an EU air operator'scertificate (AOC) to fly on routes between other EU memberstates, such as Berlin-Brussels, or to offer domestic routeswithin another member state as part of the bloc's singleaviation area. Analysts estimate such routes make up about athird of its business.

In both Germany and France, for example, obtaining an AOCwould mean the carrier needs to have its headquarters in thatcountry and its planes would have to be registered there,representatives of those countries' aviation authorities toldReuters.

A German aviation industry source said that would likelymean easyJet has to move some administrative roles out of itsheadquarters in Luton, north of London, rather than all theiroperations.

"Issues around legal entity, or other structural issues, wedon't need to make those decisions ... until we know what theoutcome of the (UK/EU) talks will be," the easyJet spokesmansaid.

Should Britain be able to negotiate continued access to theEU's single market following Brexit, nothing will change forairlines.

McCall told Reuters on Tuesday the airline was formalisingtalks on setting up an AOC in a different EU country.

Other carriers that hold multiple AOCs include Norwegian AirShuttle and IAG, which groups British Airways,Iberia, Aer Lingus and Vueling. Irish carrier Ryanair,whose main source market is the UK, has also said it will obtaina UK AOC should it need to.

easyJet warned on third-quarter profits on Monday, blamingstrike action by French air traffic controllers, congestionissues at Gatwick airport and severe weather.

Shares in the firm have fallen 17 percent over the lastweek. On Friday they were up 0.7 percent at 1,094.3 pence at1400 GMT. (Reporting by James Davey and Victoria Bryan; Additionalreporting by Cyril Altmeyer in Paris; Editing by AlexanderSmith, Greg Mahlich)

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*

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