Referendum Regrets

As Americans go to the polls next week to exercise their right to vote, global supply chain analysts and foreign policy experts are reminding us that democracy has a dark side too.

Witness the popular referendum in the United Kingdom which begat Brexit, a situation that has the air cargo industry especially concerned.

Even in the best-case scenario, where a Brexit transition phase is agreed for the period after March 2019, a high degree of uncertainty and risk to air services remains, says The International Air Transport Association (IATA).

A no-deal or “hard” Brexit outcome, without an agreement for a transition period, is likely to lead to significant disruption to air services, contend IATA analysts. Moreover, the lack of transparency concerning any contingency planning for this scenario has left airlines completely in the dark as to what measures to take.

“The EU and UK have a responsibility to millions of their citizens who depend on reliable air transportation. The goal should be a comprehensive air services agreement that does not step backwards from the connectivity existing today,” stated IATA.

But with the possibility of a “no deal” Brexit still on the table this late in the game, it is now essential that the EU and UK civil aviation authorities plan for contingency arrangements to maintain a minimum level of connectivity, which is vital for the air cargo industry.

“This has to be one of the most important Brexit considerations,” added IATA. “A backstop contingency plan to keep planes flying after March must be published, and quickly.”

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