Impact of Brexit on the Aviation Industry
Since the announcement of the UK’s vote to leave the European Union, there have been a lot of questions. The EU provided the UK with trade agreements, protections, and a multitude of other things, among them aircraft and aircraft technology certification.
The EU’s aviation regulatory agency, Europeans Aviation Safety Agency (EASA), handles certifications, standardization, approval, and regulation of civil aircraft and technology for member countries. The process is intensive and expansive as, just like a jet, there are a lot of moving parts.
As of January 1, 2021, the responsibility for all these moving parts will fall to the UK’s Civil Aviation Authority (CAA). According to the UK’s Transport Secretary, Grant Schapps, there are a lot of plans in the works to make the transition as efficient as possible.
Shapps discussed that many of the aviation experts who are currently working for EASA will come home, bringing their skillset and expertise with them. Currently, the EASA is based in Cologne, Germany and most of the executives are British. This could lead to a much smooth transition than expected considering the way Brexit has planned out so far. It could also lead to many openings at EASA to find new experts to fill those positions, if the leading figures do go back to the UK.
One of the best ways to invite experts back to the CAA would be to offer higher salaries and benefits. However, the overall country budget projections will be stretched once they leave the EU, putting a wrench in that plan.
Soft deadlines rear their heads in this process as well. While Schapps assures that the transition will go according to plan as scheduled, there is an offer by EASA to expand it another two years. We’ll see how confident Schapps is as the July 1 deadline to accept that offer closes in.
Similarly to all the concern around Brexit, ADS Group that represents UK businesses in aerospace, defense, security and space is concerned about the negative economic effect of the UK leaving EASA. Chief Executive of ADS, Paul Everitt has said the best option for the UK is to remain in EASA in order to remain competitive in the industry. The reported cost of setting up the CAA to handle its workload is around £40 million per year whereas the cost of a EASA membership is between £1 million and £4 million.
There’s no telling exactly what the impact of Brexit will be until it happened later this year. At Miami Jet, we’re dedicated to providing you the latest in aviation news. We’re also your trusted partner in aircraft brokerage. Whether you’re buying, selling, or financing, put our expertise to work for you to get the best deal. Take a look at our inventory today! We can’t wait to help you soar to new heights this year!