Easyjet to counter Brexit with new headquarters in Austria

An Easyjet aircraft in Geneva, Switzerland.

Budget airline Easyjet (LON:EZJ) have announced a plan to open a new headquarters in Austria, allowing it to continue operating flights in the EU in the wake of Brexit.

The new airline, Easyjet Europe, will be headquartered in Vienna and is expected to cost around £10 million to set up. However, the overall costs of Brexit to the airline has been so far have been much higher; the devaluation of sterling hit profits by £88 million in 2016 and £82 million in the first half of this year alone.

EasyJet confirmed that its application was “well advanced” and that it was looking receive its licence in the “near future”.

A spokeswoman said “nothing will change” from the perspective of passengers, and that no jobs in the UK would be lost; its 1,000 employees in Britain would continue to be based in Luton and its 11 other bases across the country.

European airlines based in Europe have faced increasing uncertainty in the wake of the Brexit vote, endangering their ability to fly freely between European airspaces. Several other companies have also looked to set up subsidiaries or move their entire operations abroad, possibly leading to the loss of British jobs in the industry.

Easyjet shares are currently trading down 0.14 percent at 1,407.00 (1111GMT).