Passengers could lose out in Brexit aviation tussle

A leading aviation analyst has warned passengers could be the biggest casualty after the EU ordered UK-based airlines to relocate to EU countries or sell shares to EU nationals to avoid losing major routes.

Mark Simpson of Goodbody said continuing uncertainty could lead to consumers being most affected in the long run as disruption was prolonged.

According to reports, EU officials have told airlines they will need to move bases and have the majority of European shareholders if they wanted to fly routes within continental Europe, after Brexit.

Mr Simpson said: “This could rumble on for years. What we simply don’t know is how old bilateral agreements will end up and how negotiations will be progressed. A compromise may well only be decided at the 11th hour. There are two easy sectors for the EU to talk tough on — aviation and financial services. The concern is that political posturing will win out.”

Despite Ryanair being Irish registered with headquarters in Dublin, the company conceded that uncertainty was harming business.

A spokesperson said: “This uncertainty will continue to represent a challenge for our business for the remainder of financial years 2017 and 2018.

"While there may be opportunities to expand at certain UK airports, such as the recent extension of our growth deal at Stansted, we expect to grow at a slower pace than previously planned in the UK and will continue to switch capacity into other key markets around Europe.”

Ryanair reiterated its call that the UK remain part of Europe’s Open Skies system. Aer Lingus and British Airways owner IAG said it would “continue to comply with the relevant ownership and control regulations”.