Following a rigorous and comprehensive process, easyJet earlier this year applied to Austro Control for an Air Operator Certificate (AOC) and to Austria's Federal Ministry for Transport, Innovation and Technology (bmvit) for an airline operating licence.

The accreditation process is now well advanced and easyJet hopes to receive the AOC and licence in the near future.  

These will allow easyJet to establish a new airline, easyJet Europe, which will be headquartered in Vienna and will enable easyJet to continue to operate flights both across Europe and domestically within European countries after the UK has left the EU (regardless of the outcome of talks on a future UK-EU aviation agreement).

The people and planes that will fly for easyJet Europe are already employed and based in EU27 countries.

 

Notes to Editors:

 

1. easyJet is making this announcement as the AOC approval process requires the updating of easyJet’s safety systems and processes which will make public the regulator easyJet has applied to.

2. The criteria for selection were rooted in finding a regulator that would be the best fit for easyJet. Austro Control has a rigorous approach to safety regulation, contributing to EASA’s drive towards shaping future safety regulation with an emphasis on performance based safety regulation.  

3. The new structure means that easyJet would become a pan European airline group with three airlines based in Austria, Switzerland and the UK.  All of these will be owned by easyJet plc which itself will be EU owned and controlled, listed on the London Stock Exchange and based in the UK.

4. While the new structure will protect all of easyJet’s current flying rights within Europe, easyJet will continue to push for the UK and EU to reach an aviation agreement which, at a minimum, will enable flights between the UK and EU.

5. easyJet currently bases around 100 aircraft and employs around 4000 people across six EU27 countries who will form the basis of easyJet Europe, and does so on local contracts in their based countries and in full compliance with local and EU rules and regulations. 

6. The establishment of easyJet Europe will create a number of new jobs in Austria, but no jobs will move from the UK to Austria.  All of easyJet’s UK employees will continue to be based in Luton and our 11 UK bases and employed as they are today.

7. easyJet has operated in Austria for 11 years, flying more than a million passengers in 2017. Last year easyJet increased the number of passengers it carried to and from Austria by 60%.

 

Background briefing on easyJet’s European AOC

 

Key facts

• easyJet flies more than 78 million passengers annually   

• Around half of our passengers come from the EU 27 and around 30% of our passengers are flying on routes between and within the EU 27.  

• Currently European airlines, including UK airlines, operate in a liberal market which allows all European airlines the freedom to fly any route they choose within the EU.  

• Currently around 100 aircraft and around 4000 of our crew are currently based in EU27 countries, around 25 easyJet aircraft and around 950 people are based in Switzerland and around 140 aircraft and 6000 people are based in the UK. 

 

On the AOC

 

How does easyJet currently operate across the EU? 

Under EU law an airline of any EU member state has the freedom to fly any route within the EU. easyJet has a UK operating licence and Air Operators Certificate (AOC) which means, as the UK is currently an EU member, it is an EU airline.  easyJet also already has a Swiss operating licence and AOC.

 

What has easyJet applied for?

easyJet has submitted an application for an AOC to Austro Control and an application for an airline operating licence to Austria's Federal Ministry for Transport, Innovation and Technology (BMVIT).  Once awarded, these will allow easyJet to establish an airline, easyJet Europe, headquartered in Vienna. 

 

Why is easyJet applying for an AOC?

The Austrian AOC will enable easyJet to continue to operate flights both across Europe and domestically within European countries after the UK has left the EU (regardless of the outcome of talks on a future UK-EU aviation agreement).

 

What does an airline need in a country where it holds an AOC?  

To qualify for an AOC, the operator must have personnel and procedures in place to ensure the safety of its operations. The certificate lists the aircraft types and registrations to be used, for what purpose and in what area - specific airports or geographic region.  In addition, an airline needs an operating licence which allows commercial operations to take place.  

 

Is it usual for airlines groups to have more than one AOC?  

Yes. Many airline groups have multiple airlines and therefore multiple AOCs, such as IAG, Lufthansa Group, as well as Air France KLM, Norwegian and TUI.

 

On the application process

 

How has easyJet made the selection? 

easyJet conducted a comprehensive and rigorous process to select the right country for its European airline.  This has included conducting in depth research and meetings with a number of regulators to understand which would be the best fit for easyJet.

 

What were the criteria for selection?

The criteria for selection were rooted in finding a regulator that would be the best fit for easyJet. Austro Control has a rigorous approach to safety regulation, contributing to EASA’s drive towards shaping future safety regulation with an emphasis on performance based safety regulation.  We also wanted a regulator who would be able to take on a large number of aircraft and had experience of an airline operating at scale. 

 

When do you expect it to be granted?

The process is now well advanced and easyJet hopes to receive the AOC and licence in the near future.

 

Once the AOC is granted, what would the next steps be?

The first aircraft will have been re-registered from our UK AOC to the new AOC as part of the granting of the AOC. From then on easyJet will phase the re-registering of the 110 or so planes that are required for its EU operations into it in a structured way over the next two winters to ensure that there is no disruption to the airline’s operations. 

This will be completed in advance of the UK leaving the EU.  It is important to note that these aircraft are not physically moving in the sense of where they are based or operated from and to. easyJet’s network remains unaffected by the setting up of the new AOC. 

 

What do easyJet’s current operations in Austria look like?

easyJet has operated in Austria for 11 years already and we fly more than a million passengers to and from Austria every year. easyJet flies from Innsbruck, Salzburg, Klagenfurt and Vienna airports to 20 destinations across Europe.

Over the last year, we increased the number of passengers we carried to and from Austria by 60%.

 

On the future structure

 

What will easyJet’s future structure look like?   

The new structure means that easyJet will become a pan European airline group with three airlines based in Austria, Switzerland and the UK, together with a commercial and operational services company based in the UK.

All of these will be owned by easyJet plc which itself will be EU owned and controlled, listed on the London Stock Exchange and based in the UK. 

Each airline will be a capacity provider to the commercial and operational services company, much as easyJet Switzerland is today. This means that the services company will sell seats to passengers, operate the website and set the network and schedule which the airlines will be responsible for operating.

easyJet Europe’s principal place of business will be Vienna and the management of easyJet Europe will have full operational oversight and financial control of the company.

easyJet Europe will operate in full compliance with all relevant Austrian and EU rules and regulations.

 

Does this mean jobs would leave the UK?  

No.  The establishment of easyJet Europe will create a number of new jobs in Austria, but no jobs will move from the UK to Austria.  All of easyJet’s UK employees will continue to be based in Luton and our 11 UK bases and employed as they are today.

The people and planes which will form easyJet Europe are already based in Europe - easyJet employs around 4000 people across continental Europe and bases around 100 aircraft in 6 EU countries and does so on local contracts and in full compliance with local and EU rules and regulations.    

 

Will easyJet be European owned and controlled? 

Yes.  easyJet plc is currently majority EU owned and we are confident that it will remain majority EU owned post Brexit.

EU27 shareholders already own close to half of easyJet’s shares.  Stelios Haji-Ioannou and his family hold Cypriot passports and account for 33% of easyJet’s shares with other (non UK) EU shareholders holding a significant number of shares.

 

Will easyJet retain its UK flying rights?

Yes.  We have had constructive discussions with the Civil Aviation Authority and the UK Government about the future regulatory framework for UK aviation post-Brexit and, as a result, we are confident that we can manage any scenario. 

 

On Brexit negotiations

 

What is easyJet looking for from the future EU/UK relationship? 

Given the importance of aviation to all the economies of Europe as an enabler of trade, tourism and travel we think it is important that the aviation market remain as open and competitive as possible.   

easyJet will continue to push for the EU and UK to reach an aviation agreement which at a minimum will enable flights between the UK and EU. We have had positive discussions with the UK and European governments and the EU on this, and it is a position which is supported by other major European airlines.