Brexit Impact on Travel Industry

Brexit Impact on Travel Industry

The travel industry is dependent on many factors and a slight change in air laws can make a huge impact. Imagine if you’re in a country that has no license to fly in other country’s boundary. In that case, air travel will become almost impossible as no plane can’t even take off.

On May 24, UK prime minister Theresa May had to struggle for his job and announced that she would resign as she ends up with no plan to satisfy her party.

On 23 June 2016 a referendum held in the European Union where 51.9 percent voters supported the departure of the United Kingdom.

This is called Brexit and has put the country in a crucial situation. The country has lost its relationships with several European countries and it disturbed their economic equilibrium a bit.

Other than discussing what Brexit has to do with economy or bilateral relationships, let’s talk about its impacts on the Travel industry:

Brexit Impact on Travel Industry

How Brexit will Impact on Travel Industry

After Brexit, UK citizens will suffer a lot and they’ll visit European countries the same way non-EU citizens visit.

The travel industry will face a huge change in their ecosystem, here’s how it would affect English travel:

#1. Air Travel Companies to get another License

Air Travel Companies to get another License

When a country is a part of the EU, it has access to the European Common Aviation Area. Access to ECAA means the airlines licensed from any EU country can operate in other EU countries.

As Brexit is there and the UK has no place in the EU, airlines can’t operate with only UK license and documentation. Another documentation and license from the country will be required for proper operation. Airlines will have to seek individual permissions to operate across the borders.

This limitation will ultimately stop UK aviation companies to operate for intra-EU flights. In the same sense, no EU country airline can operate in the UK.

In all these limitations, the UK still has made Individual air service agreements (ASA) with Canada, Switzerland, Albania, United States, Georgia, Iceland, Israel, Montenegro, Kosovo, and Morocco. Flights from these countries don’t require extra licenses or permissions to operate.

#2. UK nationals living in the European Union

UK nationals living in the European Union

Just like the UK airlines’ have to suffer getting separate permissions and licenses to operate, UK nationals residing in the EU will suffer to some extent.

Before Brexit, no formal documentation was needed for a UK national but now you’ve to follow rules of the EU country they’re staying in.

Formal documentation will be required to stay in the European countries. You’ll probably need to:

From basic rights to licenses, UK citizens will have to register or apply to have residency in any EU country.

About its impact on travel, UK nationals can’t take direct flights to their country. Rather, they’ve to make a trip to a country where the company is licensed to the UK and then get back to the kingdom. This means the nationals living outside the UK will eventually bear greater airfares and other travel tickets.

#3. Airlines will setback

Airlines will setback

From reports, flights from the UK to EU and vice versa are the real revenue makers for airlines. As the EU has denied UK, airlines will bear a major setback. The revenue graph will go downwards for the companies that were operating in both parts with no limited rights.

To compensate for the revenue breakdown, eventually, customers have to bear high fares.

#4. No One-way Flights

As it is confirmed that both; EU and UK airlines have to take permissions and licenses to operate. This restriction will stop those one-way flights from EU countries to the UK and vice versa.

No one-way flights mean the planes from both parts have to land on a destination from where they’re allowed to enter their counterparts. This will eventually end one-way flight operations from UK and EU.

#5. No Cheap Flights

With no one-way flights, flight time and fares will increase spontaneously. Both EU and UK residents will have no cheap flights to visit their counterparts. An exponential increase in airfares will be observed for sure.

Getting Ready For Brexit Impact

Get Ready For Brexit Impact

Brexit will affect both; UK nationals living in the EU and EU nationals living in the UK.

As you follow these proactive strategies, you can survive most of the Brexit downsides.

  • Visa: For most of the EU countries, you may require a visa or other stamps from verified authorities. So, get your passport checked in case you’re traveling to UK or EU.
  • Basic Rights: Whether you belong to the EU or UK, find out whether you’ve basic rights to live as a citizen or not. You may talk to authorities to help you get basic rights like healthcare and free public transport.
  • Driving License: Contact the traffic police department to get a valid license. Licenses from both parts will lose their validity, so you require separate driving licenses.
  • Traveling by Air: Find out an airline that has the permissions to operate in the EU and UK, so that you get a one-way flight to both of your destinations.

FINAL THOUGHTS: Brexit will be a nightmare for individuals and businesses as soon as it gets implemented. European Union extended UK’s departure to 29 March 2019. That deadline gave the UK another extension. EU reported that extension is valid till 31 October 2019.

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