EasyJet has applied for AOC to setup a new Vienna based airline to stay out of the Brexit turbulence.
Britain’s biggest budget airline Easyjet has announced that it is setting up a separate company, easyJet Europe, in the Austrian capital.
The Luton-based airline had already announced that it was seeking an air operator certificate, known as an AOC, for mainland Europe, which it said would enable it to continue flying intra-European routes if the UK and EU fail to strike a deal on aviation before March 2019.
Easyjet says, around 100 planes will be assigned to the subsidiary, which will allow the airline to continue to fly as at present.
The new subsidiary will be owned by easyJet plc, which already owns the UK-based airline and the Swiss operation, easyJet Switzerland. The majority of easyJet aircraft will remain as part of the UK operation.
European rules require airlines to be majority-owned by EU shareholders. Because the largest shareholders in easyJet plc are Stelios Haji-Ioannou and members of his family, the current ratio is only slightly below 50 per cent. The airline does not envisage any obstacle to reaching the target by the time of Brexit.
The staff and planes that will fly for easyJet Europe are already employed and based in EU27 countries and the airline said that while some jobs would be created in Austria, none would be moved there from the UK.
At present EasyJet operate 100 aircraft with the staff strength of 4000.
The EasyJet shares are trading around 1411 GBX