{"id":1890,"date":"2021-02-09T11:09:16","date_gmt":"2021-02-09T10:09:16","guid":{"rendered":"https:\/\/flyskylark.com\/?p=1890"},"modified":"2021-02-09T11:09:16","modified_gmt":"2021-02-09T10:09:16","slug":"post-brexit-air-transport-the-morning-after","status":"publish","type":"post","link":"https:\/\/flyskylark.com\/en\/post-brexit-air-transport-the-morning-after\/","title":{"rendered":"Post-Brexit air transport, the morning after"},"content":{"rendered":"

Following the UK\u2019s decision to leave the European Union and after months of fraught negotiations, the EU and the UK agreed to the terms of a post-Brexit Trade and Cooperation Agreement (TCA)<\/a>, which entered into force on 1 January 2021.\u00a0<\/strong><\/p>\n

The trade agreement is 1449 pages long, 26 of which relate to aviation, and offers several important operational flexibilities and other rights that will benefit UK and EU passengers, cargo, and aircraft charter operators. This agreement is the long-awaited response to the sector\u2019s\u00a0<\/span><\/span>concerns<\/span><\/span>\u00a0about the real impact of\u00a0<\/span><\/span>Brexit<\/span><\/span>\u00a0on the already very fragile air transport industry.<\/span><\/span>\u00a0<\/span><\/p>\n

Commercial Aviation\u00a0<\/span><\/span>Traffic\u00a0<\/span><\/span>R<\/span><\/span>ights\u00a0<\/span><\/span>\u00a0<\/span><\/h1>\n

The rights\u00a0<\/span>of full overflight and\u00a0<\/span>fly to and from each other’s territory<\/span>, i.e.\u00a0<\/span>\u00a0First, Second, T<\/span>hird and\u00a0<\/span>F<\/span>ourth freedom<\/span>, are preserved<\/span>\u00a0for a<\/span>ll<\/span>\u00a0EU and UK carrier<\/span>s, scheduled and non-scheduled airlines, private jet<\/a> operators.<\/span>\u00a0<\/span><\/p>\n

For example: Any UK Carrier can operate scheduled services from Manchester to Warsaw, carry paying passengers on both directions and overfly the Netherlands and Germany on the way there.\u00a0<\/span><\/strong><\/p>\n

The c<\/a><\/span>argo operat<\/span>ions\u00a0<\/span>benefit<\/span>\u00a0from less restrictions<\/span>\u00a0and\u00a0<\/span>the principle of\u00a0<\/span>fifth Freedom has been agreed<\/span>.\u00a0<\/span>However,<\/span>\u00a0<\/span>this must be\u00a0<\/span>r<\/span>eciprocally granted\u00a0<\/span>by the UK and a member State<\/span>\u00a0through bilateral a<\/span>rrangements<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

For example:\u00a0A\u00a0cargo aircraft operated by a Romanian\u00a0carrier can\u00a0carry cargo\u00a0between\u00a0East-Midlands and Jersey, as long as, before that\u00a0cabotage service,\u00a0the aircraft originates\u00a0from\u00a0a\u00a0EU\u00a0point.\u00a0<\/strong><\/span><\/p>\n

UK and EU operators will be\u00a0<\/span>considered\u00a0<\/span>as third country operators in each other\u2019s airspace, therefore t<\/span>he\u00a0<\/span>other<\/span>\u00a0<\/span>level<\/span>s<\/span>\u00a0<\/span>of\u00a0<\/span>liberties previously granted\u00a0<\/span>(including cabotage rights)<\/span>\u00a0are\u00a0<\/span>no longer\u00a0<\/span>applicable.<\/span>\u00a0<\/span><\/p>\n

Finally, the agreement\u00a0<\/span>opens<\/span>\u00a0the door to\u00a0<\/span>ad-hoc\u00a0<\/span>charter flight<\/span>s<\/span>\u00a0that\u00a0<\/span>can operate with more flexibility<\/span>, subject to prior authorizations\u00a0<\/span>from the respective aviation authorities.\u00a0<\/span>However, many private jets<\/a> operators have observed that the derogatory authorizations have rarely been granted to them, so far.<\/span>\u00a0<\/span>At the origin of this phenomenon, most likely we may soon identify a willingness of local carriers to play their veto of non-objection.<\/span>\u00a0<\/span><\/p>\n

\u00a0For example: An Irish private jet operator wishing to operate an air ambulance between Glasgow and Cardiff would have to apply to the British CAA<\/a> to get the relevant authorizations\u00a0prior to the\u00a0chartered\u00a0mission.\u00a0\u00a0<\/strong><\/span><\/p>\n

The same conditions apply to a\u00a0UK airline operating\u00a0an inclusive-tour\u00a0charter chain\u00a0between\u00a0Stockholm\u00a0and\u00a0Ibiza.\u00a0<\/span><\/strong><\/p>\n

\u201cHowever,\u00a0<\/span><\/i>many private jets operators <\/span><\/i>ha<\/span><\/i>ve\u00a0<\/span><\/i>observed that the derogatory authorizations have rarely been granted to<\/span><\/i>\u00a0them, so far<\/span><\/i>.\u201d<\/span><\/i><\/p><\/blockquote>\n

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Ownership and control<\/span><\/span>\u00a0of air-carriers\u00a0<\/span><\/span>\u00a0<\/span><\/h1>\n

To<\/span>\u00a0obtain the traffic rights between the\u202fUK\u202fand the\u202fEU, airlines from each side must be owned and effectively controlled by nationals of their own side, must have their principal place of business in their own territory, and must hold an AOC<\/span>\u00a0(<\/span>A<\/span>ir Operator Certificate)\u00a0<\/span>issued by the\u00a0<\/span>competent authority in their own jurisdiction.\u00a0<\/span>\u00a0<\/span><\/p>\n

UK\u202fairlines that held a valid operating licence on 31<\/span>\/12\/20<\/span>\u00a0<\/span>still<\/span>\u00a0count as\u202fUK\u202fairlines\u00a0<\/span>even\u00a0<\/span>if they are owned and effectively controlled by nationals of the\u202fEU\u202f(or the European Economic Area or Switzerland) or a combination of\u202fEU\u202fand\u202fUK\u202fnationals.\u00a0<\/span>However, t<\/span>his\u00a0<\/span>does\u00a0<\/span>not apply to\u00a0<\/span>U<\/span>K\u202f<\/span>carrier\u00a0<\/span>projects that<\/span>\u00a0would\u00a0<\/span>obtain\u00a0<\/span>the<\/span>ir operating license o<\/span>n or after\u00a0<\/span>01\/01\/2021<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Th<\/span>is<\/span>\u00a0ownership\u00a0<\/span>and control\u00a0<\/span>question\u00a0<\/span>was key for some airlines, like British Airways<\/span>.\u00a0<\/span>Without th<\/span>ese provisions<\/span>, the\u00a0<\/span>English\u00a0<\/span>carrier\u00a0<\/span>that is a subsidiary of the Spain-registered IAG Group,\u00a0<\/span>could have lost its<\/span>\u00a0UK airlines status<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

In the same manner, Ryanair had to<\/span>\u00a0<\/span>clarify their ownership and control structure<\/span>s<\/span>\u00a0<\/span>in order to<\/span>\u00a0keep their\u00a0<\/span>European<\/span>\u00a0carrier status.\u00a0<\/span>However,<\/span>\u00a0to keep on\u00a0<\/span>operating intra-U<\/span>K<\/span>\u00a0routes,\u00a0<\/span>Ryanair\u00a0<\/span>creat<\/span>e<\/span>d<\/span>\u00a0<\/span>a\u00a0<\/span>UK sister compan<\/span>y<\/span>\u00a0<\/span>(with\u00a0<\/span>significant differences in terms\u00a0<\/span>of\u00a0<\/span>ownership and control)<\/span>.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

The agreement says that the two sides recognise the benefits of continued liberalisation of ownership and control and agree to evaluate options for reciprocal liberalisation within 12 months of entry into force of the Agreement.<\/span>\u00a0<\/span><\/p>\n

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Code-Sharing, Change of Gauge, and Co-Terminalisation Rights<\/span><\/span>\u00a0<\/span><\/h1>\n

It<\/span>\u00a0<\/span>allows\u00a0<\/span>air carriers to\u00a0<\/span>act<\/span>\u00a0as\u00a0<\/span>marketing<\/span>\u00a0carrier<\/span>s<\/span>\u00a0on routes\u00a0<\/span>for\u00a0<\/span>which<\/span>\u00a0<\/span>they are not permitted<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

For example: Intra-EU cabotage restrictions forbid a UK carrier to operate from Frankfurt to Berlin. However, this UK carrier can code-share with an EU operating carrier and selling tickets on the above route as the marketing carrier.\u00a0<\/strong><\/span><\/p>\n

T<\/span>he\u00a0<\/span>a<\/span>greement permits carriers to transfer traffic between aircraft o<\/span>perated by t<\/span>he same air carrier at any point (<\/span>\u201c<\/span>change of gauge<\/span>\u201d<\/span>)<\/span>.<\/span>\u00a0<\/span><\/p>\n

For example: An UK air carrier to operate a high-capacity aircraft to Amsterdam, offload the passengers terminating at Amsterdam, and transfer any continuing passengers to smaller aircraft flying to Luxembourg. On the other hand, the same British carrier is not allowed to sell tickets between Amsterdam and Luxembourg.\u00a0\u00a0\u00a0<\/span><\/strong><\/p>\n

Finally,\u00a0<\/span>the<\/span>\u00a0<\/span>a<\/span>greement permits\u00a0<\/span>s<\/span>ingle service<\/span>\u00a0that or<\/span>iginate fr<\/span>o<\/span>m<\/span>\u00a0country of\u00a0<\/span>the carrier\u00a0<\/span>t<\/span>o<\/span>\u00a0<\/span>serve several points within the UK or EU\u00a0<\/span>without the right to load additional passengers in between\u00a0<\/span>(\u201cco-<\/span>terminalisation<\/span>\u201d).\u00a0<\/span>\u00a0<\/span><\/p>\n

For example:\u00a0A\u00a0Portuguese\u00a0carrier could operate scheduled services\u00a0from\u00a0Lisbon to\u00a0Manchester\u00a0via\u00a0London. While the\u00a0Portuguese\u00a0carrier could not\u00a0board additional passengers in London\u00a0for carriage to\u00a0Manchester, it could offload\u00a0passengers\u00a0at both\u00a0London and Manchester\u00a0on a single flight.\u00a0<\/span><\/strong><\/p>\n

Leasing<\/span><\/span>\u00a0<\/span><\/h1>\n

The<\/span>\u00a0UK carriers\u00a0<\/span>can<\/span>\u00a0<\/span>wet-<\/span><\/a>lease\u00a0<\/span>an aircraft\u00a0<\/span>(as per a\u00a0<\/span>w<\/span><\/a>et-lease\u00a0<\/span>\/\u00a0<\/span>ACMI\u00a0<\/span>agreement, the aircraft is provide<\/span>d<\/span>\u00a0with a crew,\u00a0<\/span>its\u00a0<\/span>maintenance,<\/span>\u00a0and\u00a0<\/span>an\u00a0<\/span>adequate\u00a0<\/span>insurance coverage)\u00a0<\/span>from\u00a0<\/span>any\u00a0<\/span>UK or EU\u00a0<\/span>air carrier<\/span>.<\/span>\u00a0<\/span>However,\u00a0<\/span>EU\u00a0<\/span>air carriers<\/span>\u00a0are\u00a0<\/span>only\u00a0<\/span>allowed to\u00a0<\/span>wet-lease<\/span>\u00a0a<\/span>n<\/span>\u00a0aircraft\u00a0<\/span>operated\u00a0<\/span>by a EU<\/span>\u00a0<\/span>air\u00a0<\/span>operator<\/span>.\u00a0<\/span>Other wet lease arrangements are permitted in exceptional circumstances, such as seasonal capacity or operational difficulties, only for a\u00a0<\/span>limited\u00a0<\/span>period<\/span>.<\/span>\u00a0<\/span><\/p>\n

For\u00a0<\/span>example:<\/span>\u00a0A Belgian carrier has to cope with a peak of activity during the summer period and leases an additional aircraft from a Greek carrier on an ACMI basis.<\/span>\u00a0<\/span><\/p>\n

Competition protection mechanism<\/span><\/span>\u00a0<\/span><\/h1>\n

The UK and EU are committed to eliminate, within their respective jurisdictions, all forms of discrimination which would adversely affect the fair and equal opportunity of the air carriers<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/span>Where the UK or EU\u00a0<\/span><\/span>considers that its air carriers\u2019 fair and equal opportunities to compete in the exercise of the rights\u00a0<\/span><\/span>is<\/span><\/span>\u00a0adversely affected by discrimination<\/span><\/span>, there is an arbitration and retaliatory measures mechanism.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

Passenger Rights <\/span><\/span>after Brexit<\/span><\/span>\u00a0<\/span><\/h1>\n

The UK and the EU share the goal of achieving a high level of consumer protection.\u00a0<\/span>\u00a0<\/span><\/p>\n

The UK has transposed the wording of EU261<\/a> into British law. Even if passengers departing<\/span>\u00a0from<\/span>\u00a0the UK are no longer covered by EU261 legislation, they are protected by similar\u00a0<\/span>domestic<\/span>\u00a0legislation.\u00a0<\/span>\u00a0<\/span><\/p>\n

The\u00a0<\/span>agreement<\/span>\u00a0<\/span>stipulates<\/span>\u00a0that non<\/span>-discriminatory measures are taken to protect the interests of air transport consumers. These measures should include adequate access to information, assistance, including for people with disabilities and reduced mobility, reimbursement and, if applicable, compensation in the event of denied boarding, cancellation or delay<\/span>\u00a0above 5 hours<\/span>, and efficient complaint handling procedures.\u00a0<\/span>\u00a0<\/span><\/p>\n

The EU and the United Kingdom will consult each other on any issue related to consumer protection, including the measures envisaged in this respect.<\/span>\u00a0<\/span><\/p>\n

Aircraft certification and operating standards<\/span><\/span>\u00a0<\/span><\/h1>\n

The United Kingdom becomes a third country. All standards, and in particular EASA<\/a> (European Aviation Safety Agency) aircraft certification and operating and those of the United Kingdom Civil Aviation Authority must not diverge and mutual recognition has been agreed. This reciprocity is crucial in order to, for example, ensure that licences of specialised personnel (pilots and mechanics), issued before the Brexit, are recognised everywhere in Europe according to the same standards. This will enable these people to continue to carry out their professional activities where they are employed.<\/p>\n

Conclusion<\/span><\/span>\u00a0<\/span><\/h1>\n

Above all, the TCA provides answers and a framework for the airlines to support their development. Eventually, the ACC is more ambitious than the emergency measures drawn up in preparation for a possible scenario where no agreement has been reached. It also reassures all airlines (from the major ones to business jet operators) who may have expected a no-deal that would have suspended all flight connections overnight.\u00a0<\/span>\u00a0<\/span><\/p>\n

Nevertheless, the agreement that came into force on 1 January shows to what extent the links between the European Union and the United Kingdom is well and truly broken. Whereas not so long ago it was common to fly within Germany, France and even Greece on aircraft under the British banner, British carriers (as defined by the Agreement) are now relegated to the rank of TCO (Third Country Operator), in the same way as American or African airlines.\u00a0<\/span>\u00a0<\/span><\/p>\n

While the air transport industry is going through the worst crisis in its history, within a divided Europe, it is noteworthy that this agreement opens doors and lays the foundations for a progressive deregulation of the market between the EU and the United Kingdom, from which the consumer will ultimately be the great beneficiary.<\/span>\u00a0<\/span><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Following the UK\u2019s decision to leave the European Union and after months of fraught negotiations, the EU and the UK agreed to the terms of a post-Brexit Trade and Cooperation Agreement (TCA), which entered into force on 1 January 2021.\u00a0 The trade agreement is 1449 pages long, 26 of which relate to aviation, and offers […]<\/p>\n","protected":false},"author":5,"featured_media":1892,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[642,545],"tags":[542,531,533,487,529,539,662,537,543,525,540,536,528,535,526,532,530,663,524,538,534,660,527,541],"class_list":["post-1890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news-en","category-regulation","tag-acmi-en","tag-air-carriers","tag-aircraft","tag-aircraft-charter","tag-airlines","tag-brexit-en","tag-business-aircraft","tag-caa","tag-cargo-en","tag-code-sharing","tag-dry-lease-en","tag-easa","tag-eu","tag-eu261","tag-leasing","tag-passenger-rights","tag-private-jets","tag-private-jets-en","tag-tca","tag-third-country-operator","tag-traffic-rights","tag-travelling-by-private-plane","tag-uk","tag-wet-lease-en"],"acf":[],"yoast_head":"\nPost-Brexit air transport, the morning after - 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As far as aircraft dry-lease<\/a> is concerned (the\u202faircraft\u202fowner provides the\u202faircraft\u202fto the lessee without crew), UK and EU air carriers can use an aircraft leased from any lessor.\u00a0<\/span>\u00a0<\/span><\/p>\n