Whether one likes it or not, it appears that Brexit is about to become a reality. If and when that happens, there will be many questions to answer for aviation businesses on both sides of the Channel. Which consequences could Brexit have for aviation? What scenarios are possible or likely?
The most important question might be which differences to expect once the United Kingdom has left the European Union. The common aviation market of the European Union is shaped by some core elements and key privileges, many of them stipulated by Regulations (EC) Nos. 1008/2008 and 216/2008. Will the relationship to the United Kingdom continue to be based on these rules and principles, as are the relationships of the EU with the states of the EFTA or of the EEA? Or will aviation between the European Union and the United Kingdom bear more resemblance to other examples? There are many possible scenarios, some of them more likely, some of them less so. Aviation businesses may wish to consider a variety of different scenarios in their effort to prepare for whatever the future may bring in reality.
Under current European Union aviation law, access to the common aviation market in the European Union is granted to air carriers that are majority owned and effectively controlled by citizens of the European Union or of other states with a similar status (e.g. Switzerland or Norway). Access to other aviation markets outside of the European Union relies mostly on air traffic rights granted under bilateral or multilateral agreements (these are public international law agreements made between states). A closer look at these requirements is necessary to understand how they might shape the consequences that Brexit has for aviation.
If access to the aviation market is one side of the coin, the other side could easily be of a more financial nature. In principle, the European Union offers freedom of capital movement to anyone. In the midst of Europe, Germany has traditionally been open-minded regarding foreign direct investment. A closer look at some of the principles and details of foreign direct investment may therefore help to gain further insight into some of the consequences that Brexit may have for aviation. Aviation businesses may also wish to consider investment scenarios in their effort to prepare for the time after the United Kingdom has left the EU.
For aviation, Braunschweig is a place to be (in Europe)! For aviation investments, some core institutions and processes operate from the regional city of Braunschweig in Lower Saxony. Aircraft are registered with the German civil aviation authority (Luftfahrt-Bundesamt). Liens on aircraft (Registerpfandrechte) are registered with the Local Court (Amtsgericht). German law concerning the financing and securitization of aviation assets offers considerable legal certainty.
Naske Legal invite you
Brexit - What's next.
Seminar on Legal Questions and Scenarios for Aviation
5th October 2017
10.00 a.m. - 04.30 p.m.