The European Commission is working on a plan of the specific and concrete impact of a no-deal Brexit on the aviation industry. As we reported earlier, those plans would be the main topic of discussion for the MPs in the parliamentary commissions on foreign affairs and transport.
Luxembourg especially has a keen economic interest in aviation and an ensuing interest in relations not disintegrating. The United Kingdom remains a significant destination for the cargo airline Cargolux.
With the clock ticking, preparations are at an all-time high. There are only 45 days left until the United Kingdom officially leaves the European Union. According to Democratic Party MP Gusty Graas, a number of important questions remain to be clarified. There would be no way for Luxembourg to resolve each and every issue in the short time frame.
National Interests
As explained by the Green Party MP Stéphanie Empain, the main topic is of course aviation. In light of Cargolux's significance in the sector, the issue of a no-deal Brexit is one that affects Luxembourg's national interests.
If there is no withdrawal agreement set for the transition period following 29 March, all the regulations that have applied to the United Kingdom would instantly no longer be applicable. In order to prevent air traffic between the EU and UK from coming to a complete standstill, the European Union is negotiating the rights that the British will still have despite Brexit - at least, for a short time.
The negotiations concern fundamental issues such as whether British airlines will be permitted to land in Europe or not. The hopes of these negotiations are that the UK will accord the European Union the same rights, which is of particular interest to Luxembourg: this would mean Cargolux would still be authorised to land in London.
EU Consensus
However, there is no consensus at an EU level. While member-states have worked on a communal position, it remains to be seen whether the European Parliament will pass the agreement.
Luxembourg is adamant that the so-called fifth freedom of the air, which "allows an airline to carry revenue traffic between foreign countries as a part of services connecting the airline's own country," must be maintained. The fifth freedom of the air would, for example, allow Cargolux to fly to London, and then continue to New York. It would give Cargolux the right to transport wares from London to New York.
When asked whether they believe that it will not come to a no-deal Brexit and the withdrawal agreement will pass, MPs responded that they hope so. However, it seems few truly believe in this prospect.
