Irish Employment Firms to Benefit From Brexit

Irish Employment Firms to Benefit From Brexit


On 23rd June, the British public voted by a margin of 52% to 48% to withdraw from the European Union.

As canvassed in our previous Brexit article, this will have a significant impact on the Irish aviation sector and its relationship with its UK counterpart.

Brexit could well mean that cheap flights to continental Europe for UK passengers will be a thing of the past and prices could rise to that seen in the 1980's.

Dublin is set to gain over 20% of the financial business post Brexit. Irish employment firms are set to benefit as well from the increase in Foreign Direct Investment.

THE UK HAS VOTED TO EXIT – WHAT HAPPENS NOW?

Theresa May has been elected Prime Minister, and can now begin to properly focus upon the negotiation of a Brexit Treaty with the EU.
The German Chancellor Angela Merkel has already indicated that Ireland will be given a voice at the table of this Treaty negotiation, due to its unique relationship with the UK.
The UK is Irelands largest trading partner with more than 70% exports going to the United Kingdom.
Mr Davis said last week the UK would enter talks with the other EU states - once Article 50 is triggered in the new year - seeking tariff-free access to the single market.
Law firms in Ireland are widely expecting that Brexit will guarantee increase workload as international companies consider shifting operations  to Ireland.
And this makes sense as Ireland will be the only remaining English speaking, common law based country in the EU and Eurozone.
Ireland shares the same legal background with many US multi-national firms and could become a gateway for foreign investment for their European operations.
Top tier Dublin law firms have suggested that Ireland may well be suited to accept business coming from the UK especially due to our infrastructure, cultural similarities and favourable tax arrangements.
Read More: Ireland World Leader In Aviation Finance & Aircraft Leasing

IMPLICATIONS OF BREXIT FOR THE IRELAND

The IDA plans to promote the competitive advantages Dublin has to offer to corporations considering their options post Brexit.
Dublin has a wide variety of competitive advantages to offer, namely its economy, skills, regulatory and taxation system, it operates  similar common law system and can boast a modern transport infrastructure.
Another benefit of Dublin, from US companies perspective, it is the only other English speaking capital city in the EU.
Ireland is a world leader in financial services, with more than 50% of the world leaders based in Dublin.
Many of these firms may well seek to utilise their Irish bases to minimise the Brexit turmoil by ensuring that they will retain their ability to efficiently service European financial markets, whilst continuing to write consistent volumes of EU business.
READ MORE: Norwegians Cork-to-Boston Route In Jeopardy

HOW BREXIT COULD AFFECT THE IRISH AVIATION INDUSTRY

Dublin Airport could benefit from US air passengers searching for a quick and easy route to Europe post Brexit.
The Irish capital is already equipped to undertake all US immigration and customs inspections prior to transfers on to other European destinations.
"Dublin could take business away from the UK if a Leave vote makes it harder for passengers to enter and exit the country." said Stephen Kavanagh, Chief Executive of Aer Lingus.
He went on to say that Ireland should already be targeting passengers who want to travel to cities on the east coast of the US without having to endure the 'poor' customer experience of the country's largest airports.
Speaking about the EU referendum ahead of the International Air Transport Association's (IATA) annual general meeting in Dublin, Mr Kavanagh said:
"Poor airports in North America are an opportunity for us to connect cities on the east coast directly to Dublin and flood those customers through to the UK and Europe."
"If Heathrow or the UK becomes difficult to transfer through from a European perspective then that again escalates the opportunity for our expanding Irish airports."
Last year more than 25 millions passengers travelled through Dublin Airport, including one million who were taking multiple flights.
Kevin Toland, Chief Executive of Dublin Airport Authority, said: 
"If you want to go to North America from somewhere in the Uk, you can find 33 cities in the UK connecting to Dublin, from Heathrow you can only go to eight other cities and towns in the UK, so there's far deeper penetration."
"Unless you like a long car journey and an expensive car parking stop in one of the major UK airports, it's easier and more straightforward and a far better experience to come through Dublin."
Three new routes between Dublin and the US are being launched this year: Los Angeles, California, Newark, New Jersey and Hartford, Connecticut.
READ MORE: Dublin Airport Expanding: New Runway, Metro North & 45,000 Jobs

IMPLICATIONS OF BREXIT ON MODERN AVIATION

Leading low cost carriers such as Ryanair and EasyJet say their bargain flights to Europe are owed very much to the liberalised aviation market created by the EU 20 years ago.
Airlines have benefitted greatly by this since 2006 as well as offering more opportunity for cross-border investment.
Brexit could mean renegotiation of these agreements and if competition is reduced, fares could rise.
Sir Stelios Haji-Ioannou, founder of EasyJet, previously warned that Brexit may lead to greater restrictions on airlines, as competition drops.
He said: "It is very possible that - in a post Brexit Europe - a more restrictive aviation environment would mean fewer flights from the UK to Europe and hence less competition between airlines.
"That in turn would mean higher air fares so that the price of a family holiday to the Med will go back up again to levels last seen in the 1980s."
Michael O'Leary, CEO of Ryanair, stated:
Ryanair "...will pivot our growth away from UK airports and focus more on growing at our EU airports over the next two years. 
This winter we will cut capacity and frequency on many London Stansted routes, although no routes will close."
The Brexit vote came as shock to many in industry and the consequence's are still being calculated. 
READ MORE: Will A Brexit Affect The Aviation Industry?