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CAPA TV | June 19, 2019

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The Outlook For UK-Europe, The Trans-Atlantic And Open Skies: How Are Airlines Preparing For The Post-Brexit World?

CAPA
  • On December 11, 2018
The UK’s exit from the EU is fast approaching – yet uncertainty remains. The European Commission has maintained that when the UK leaves the EU it will also leave the single aviation market, meaning the UK will have to negotiate a new bilateral air service agreement with the rest of the bloc in order to ensure traffic rights for its airlines. It must also negotiate new bilaterals with 17 non-EU countries where rights are currently granted under EU agreements. The most important of these is a renegotiation of the UK-US deal, which is set to govern the rules of engagement for flights between the two countries across the highly lucrative trans-Atlantic market.

The 3 major JV groupings that operate on the trans-Atlantic depend on open skies for them to gain antitrust immunity to operate in the UK market, the largest premium route. But the extent to which the UK will be restored to open skies once it leaves the EU remains to be seen, with US pilot unions conspicuously vocal in their concerns about some of the liberal provisions of open skies. Aside from labour organisations, EU governments could undo the great strides taken over the years in liberalising international traffic rights, in order to protect their flag carriers from bigger competitors encroaching further on home markets.

  • What issues are involved in the UK renegotiation and what are the positions of the protagonists?
  • Are the region’s airlines at risk of operating under more restrictive norms?
  • Will unions intervene to wind back the provisions of the North Atlantic?
  • What are the prospects for US-UK open skies post Brexit?
  • Could Brexit provide a catalyst to reform the entire bilateral system that underpins aviation governance?

Moderator: John Byerly, Consultant, Consultant, John Byerly
Panel:

  • ALPA, Regulatory Counsel & Senior Attorney, David Semanchik
  • Croon Callaghan Aviation Consulting, Partner, Jim Callaghan
  • ERA, Director General, Montserrat Barriga
  • Whitaker Air Space, Principal, Michael Whitaker

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