101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 19 Associated permissions for EU airlines EU-licensed airlines would need two associated permissions in order to operate to the UK: First, they would require a foreign carrier permit. There is a long established procedure for applying for such permits, and carriers can find out more about applying on th e UK Civil Aviation Authority website . This guidance will be updated shortly for operators of EU or EEA registered aircraft. Second, they would require a UK safety authorisation from the UK Civil Aviation Authority, a “UK Part-TCO (Third Country Operator)”. The CAA will consider each application for UK Part-TCO on a case by case basis, but in principle, an airline that holds a valid European Aviation Safety Agency (EASA) Air Operator Certificate will be considered as having met the qualifying requirements to hold such an approval. The UK would expect this recognition of equivalent safety standards to be reciprocated by the EU in its ‘Part-TCO’ authorisations. Associated permissions for UK airlines UK-licensed airlines would need two associated permissions in order to operate to the EU. First, UK airlines will require permission from the national authorities of the states to which they operate (often referred to as a foreign carrier permit). Processes may vary in different EU countries, so airlines should start consulting the national aviation authorities within the relevant EU countries for details of how they grant foreign airlines permission to operate. Second, airlines from outside the EU require a safety authorisation from the EASA, known as “Part-TCO”. EASA has yet to provide the details for how and when it would process applications from UK airlines in advance of the UK leaving the EU. However, the UK would expect the recognition of equivalent safety standards to be on a reciprocal basis. Flights to and from the rest of the world For airlines licensed outside the UK and the EU, their eligibility to operate air services to the UK is be determined by the ASA between the UK and the state in which they are licensed. For airlines from one of the 111 countries with whom the UK has a bilateral ASA, including China, India and Brazil, there will be no change. For airlines from one of the 17 non-EU countries with whom air services to the UK are currently provided for by virtue of the UK’s membership of the EU, replacement arrangements will be in place before exit day. The UK is working closely with these countries to agree replacement, bilateral arrangements designed to come into force as soon as the EU-negotiated agreements cease to apply to the UK. The UK has already agreed a number of these agreements, and is confident the remaining agreements will be agreed well in advance of the UK leaving the EU. Foreign airlines will still need to apply to the UK CAA for a Foreign Carrier Permit in the usual way and, in the short term, existing Part-TCO safety authorisations from EASA would b e treated as if they had been issued by the UK CAA . Operating and route licences An operating licence is required before an airline can undertake commercial services. It provides the means through which the CAA can ensure that airlines principally based in the UK are properly managed, and comply with key requirements regarding ownership and control, safety, finance and insurance. In order to operate internationally, all UK airlines would be required to hold a route licence from the CAA in accordance with long established domestic legislation. Route licences already issued to UK airlines will remain after the UK has left the EU. A route licence requires the airline to provide passengers with information about the operator, the type of aircraft and the destination airport. The CAA publishes th e details of the licences held by UK airlines . States have traditionally used both their licensing regime and the provisions of their ASAs to restrict foreign ownership of airlines to ensure that the prime beneficiaries of an ASA are nationals of the parties to that ASA. EU airlines must be majority owned and effectively controlled by EU nationals to qualify for an operating licence. EU-licensed airlines would need to consider how to continue to meet that requirement if, for example, they had significant investment from or ownership by UK nationals. EU airlines which have received significant investment from UK nationals should check the implications for the validity of their operating licence with the relevant national authorities. UK operating licences issued before exit would remain in place and valid as a result of the EU Withdrawal Act. Following EU exit, the UK would not impose nationality restrictions on the conditions for an operating licence. However, UK airlines would also need to consider whether the nationality and level of investment of their shareholders is permitted under the conditions of the ASAs under which they operate their services. This would include any arrangement concluded between the UK and the EU, or its member states.