Reply To: BA and EU 261 againBack to Forum
LP, I’m not too hopefull about lowering taxes and passing the savings on to passengers following a Brexit. The Brexit (and certainly a hard Brexit) will, according to most economists, lower the economic output and therefor result in a lower income for the government, meaning a larger budget deficit. This means the UK will have to borrow so more and against a higher interest rate as the UK ouside of the UK will be most likely be downgraded by the rating agencies. Also, the price of imports will rise as the pound devaluates.
My expectation is that the man in the street and businesses will have to foot the bill of a Brexit. Taxes are more likely to rise and foreign airlines will, due to the devaluation and therefor unattractive exchange rate, see their income in US$ or their local currency drop.
On the other hand: don’t expect competitors to sit on their hands. The idea that the EU will accept the UK to gain too much out of a Brexit is at best wishfull thinking.
My guess would be that for the near future not much will change for EU travellers and that the situation for UK citizens and companies will certainly not improve.
And the largest non-EU flights operator in the UK, BA, with their focus on their shareholders and bottom line, in stead of providing a quality product to customers, doesn’t help either.
A 25% reduction in non-EU air fares: I wish, but if it sounds too good to be true…..