The medium- to long-term impact of the historic \u201cBrexit\u201d vote held yesterday is still unclear, with industry insiders confident that little will change in the immediate future. As the news of the U.K.\u2019s referendum to leave the EU came in late on Thursday night, British and European trade groups underlined the importance of a pragmatic reassessment of trade relations and urged pro-trade choices despite the rancorous international atmosphere.
\nCorporations, meanwhile, rushed to assure nervous stakeholders that the industry would continue to grow despite the challenges ahead and the resulting turmoil in the world\u2019s markets today. Overall, despite some uncertainty, groups are stressing that there is no need to panic, and are cautiously optimistic that markets will evolve in an orderly fashion.
\nThe International Air Transport Association (IATA) underscored the uncertain long-term impact the vote will have on the transportation market. According to its analysis, released on Friday morning, \u201cit could be two years or more before these issues are fully resolved; prolonged uncertainty will influence both the magnitude and persistence of the economic impacts.\u201d IATA\u2019s analysis also anticipates lower international trade for the U.K. in the longer term, which will exert a negative impact on freight. IATA\u2019s response also cited an especially concerning assessment by the U.S. Organization for Economic Co-operation and Development (OECD), which anticipates U.K. trade volumes falling by as much as 20 percent, depending on the scenario.
\nHeathrow Airport, on the other hand, said it hopes to harness Brexit momentum to finally push through its long-stalled expansion plans, arguing that a larger airport is central to the U.K.\u2019s new positon in the world \u2013 one in which international trade will be even more important. \u201cWith today\u2019s result, the case for expansion at Heathrow is stronger than ever before,\u201d the airport posted on its website. \u201cOnly Heathrow can help Britain be the great trading nation, connecting all regions of the U.K. to the world. It is the keystone that connects businesses of every size to markets across the world as the U.K.\u2019s only global hub airport.\u201d
\nWhile the proposed third runway remains contentious in London itself, especially from residents living near the congested airport, the EU also had reservations, according to The Guardian. With the recent vote, planners said they are eager to move forward.
\nIn the airfreight community, the mood was guarded as well, as it is too early to say how regulations and tariffs will evolve in the new political reality. International Airlines Group (IAG) \u2013 owner of British Airways, Aer Lingus, Iberia and Vueling \u2013 posted that its business would not experience, \u201ca long-term material impact.\u201d In the run up to the U.K. referendum, however, IAG noted that it had experienced a weaker-than-expected trading environment. \u201cFollowing the outcome of the referendum, and given current market volatility,\u201d the company noted, \u201cIAG continues to expect a significant increase in operating profit this year, [but] it no longer expects to generate an absolute operating profit increase similar to 2015.\u201d
\nThe Freight Transport Association (FTA), one of the largest transportation groups in the country, warned that leaving the European Union would add to costs, restrictions and bureaucratic requirements imposed on moving goods in and out of Europe. The freight organization stressed the need for timely configuration of rules to reflect the new reality \u2013 with only two years to accomplish it. FTA Chief Executive David Wells stressed that Europe, \u201cremains our biggest export market and the supplier of a high proportion of our imports. We cannot allow new bureaucratic burdens to hamper the efficient movement of exports heading for customers and imported goods destined for British consumers.\u201d
\nOlivier Jankovec, director general of the Airports Council International (ACI)-Europe commented that \u201cThe EU and the U.K. are faced with the challenge of establishing a new relationship. While there is, for now, much uncertainty as to what will be the model, structure and modus operandi for this new relationship, it will be essential that it allows for the U.K. and EU aviation markets to remain fully integrated and based on totally aligned \u2013 if not common \u2013 rules.\u201d
\nJankovec concluded that, \u201cWe simply cannot afford to go backwards on what is now one of the backbones of our economies.\u201d
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"