Brexit

Started by NovemberCharlie, June 26, 2016, 05:00:05 PM

NovemberCharlie

Plain forward question: how and when will the Brexit be implemented in the game?

Cheers,

NC

Andre090904

Guess on the exact date when the UK will leave the EU.

Sami

Nothing to implement yet as there is currently no info on what the impacts will be.

11Air

IN DUE COURSE
Salary levels, taxes and cost of fuel, import taxes on buying foreign aircraft.  Airbus use RR engines so no great change their. Boeing will be part of a deal with USofA so probably lower tax.
How the lease market works is another matter but I'm not sure this is actually modelled at the moment anyway.
Passenger levels might change, internally, holiday business travel as the UK economy reaches a stable level with regard to each country. At the moment the low pound is attracting a surge in tourism from a round the world.
The UK is not going to put up taxes to any country, leaving the Euro Tax Boundary 'should' make the UK more attractive to every country in the world, (that likes us).
The big question is UK<>EU taxes and passenger charges. I predict it won't change by more than 5% possibly with a bias in favour of Europe of a further 5% if the 'free market' area is too be readily available to British Made Goods.
Of bigger concern to the EU is the financial situation in Greece, Italy, Portugal etc whose banks are barely coping. They would devalue, but the EU rules don't allow that.

Of more interest for the future of UK air travel is which of the London Airports gets the Runway Expansion. I have opened a forum note on just that issue, hoping that we can do short game worlds to see how things work out as each airport gets the additional capacity.

11Air

There were more discussions on TV recently on specifically this issue.
The Airline Access is currently covered by a 1948 agreement which provides for free access to all civilian airports and traffic. There is of course a preference by the local population for airlines of their own nationality (not modelled in this simulation?).
There is a new EU Airline proposal which has been 'in progress' for some time, currently stalled prior to the Brexit vote.
The EU Controlled Airspace already includes non-EU countries, and has the necessary agreements with those adjacent to the EU Airspace to allow new Routing, Scheduling etc to be agreed or existing revised.
So Brexit may mean no change to the UK Airline Costs and Routes, but that rather depends on the EU.  In the new mood of independence any increase in charges to the UK may trigger a reciprocal increase in charges for flights into the UK so lets hope the airmen at least can play straight and level.
America operates in a similar manner with the EU and the rest of the world. There may be some rubber stamping of new agreements. EU and UK are not likely to change much there under the 1948 agreement.
Keep Calm And Carry On

11Air

As for the exact date of Brexit there is an election for EU Parliament in about three years. This suggests that Article 50 may be submitted in around 6 months so that the necessary adjustments can be made under the present EU Parliament.

qunow

Quote from: Sami on June 27, 2016, 09:14:30 AM
Nothing to implement yet as there is currently no info on what the impacts will be.
I think we can at least expect Britian will no longer be in the European Common Aviation Market, and thus British companies will no longer be able to hold bases in rest of EU, as well as EU companies will no longer be able to open base within Britian? As that is what the "Brexit" mean.