Hedging Against A Brexit Deal That Does Not Include Aviation

Irish low-cost carrier Ryanair has applied for a U.K. Air Operators Certificate so that it can continue to operate domestically even if any Brexit deal does not include aviation provisions.

Business Insider online reports that such a license would allow Ryanair to connect city pairs such as London and Glasgow even if the U.K. and the E.U do not have an agreement on aviation in their Brexit pact.

The airline said in a statement to Sky News that the application was filed on December 21. "This may be required for Ryanair's three UK domestic routes in the event of a hard Brexit in March 2019," the statement said.

Such operations include only three routes, so the action is seen as cautionary on the part of Ryanair. They would account for only about 2 percent of total revenues.

Ryanair CEO Michael O'Leary has been a vocal critic of Brexit, and has warned that airline travel could be seriously disrupted once Britain leaves the E.U.

At least one other airliner, Hungary-based Wizz Air, has also applied for a certificate to operate domestic routes in the U.K.

(Image from file)

FMI: Original Report