Portugal is on a short-list of two countries of which easyJet will request a local Air Operator’s Certificate due to post-Brexit complications if it wants to keep flying on European routes outside the UK.
The airline’s management has been in talks with the Portuguese government over registering an affiliate company in Portugal so it can keep running easyJet domestic operations across Europe.
As a British company, easyJet company is licensed in the United Kingdom, but also in Switzerland or it could not operate there.
With Brexit looming, the company needs a third licence, "easyJet remains committed to the UK and has taken steps to secure the future of the business after the outcome of the referendum," wrote John Barton, the group's chairman, in the 2016 annual report.
The company said by the end of the summer of 2016 that "as part of a pre-referendum contingency plan we had informal discussions with several European aviation regulators on the registration of aviation operation in a European country."
The airline’s management has to decide by the end of May in which country it will request a new Air Operational Certificate, the choice is Portugal or Austria.
easyJet is British, but is 40% Cypriot owned, which makes it possible to comply with current European rules governing airlines.
What is being discussed is the creation of a new easyJet company in a European Union country. If Portugal is chosen, the company will have a Portuguese brand with fleet registration and a base in Portugal.
This re-registration will mean a Portuguese flag will be painted on the nose of up to 200 aircraft and Portugal will receive licensing income. The cost of registration is estimated at €10 million in a process that will take at least a year.
The chairman of easyJet said that the company "cannot afford to wait to see what happens with Brexit," but has rejected a complete move from Luton to a base in another country and says there will be no redundancies in the UK.
One foreign company that already has registered in Portugal is NetJets, which is American but operates in Europe through a Portuguese company in Oeiras.
