Brexit's Impact on UK Airlines

Introduction

Brexit refers to the situation where the United Kingdom exist from the European Union (EU), where most of the citizens voted for Brexit and this incident raises instability in the economic condition of the UK as the National Income, international trade, Gross Domestic product of the country as well as Foreign investment are fluctuating according to such decision of Brexit (Lawless, 2018; Bouoiyour, and Selmi, 2018). The research focuses on the effects of Brexit on the airline industry specifically where it is easy to demonstrate how the incident of Brexit affects the airline industry as the UK is the biggest EU’s airline market as measured by the passenger number. Hereby, it is important to analyse the impacts of Brexit on the airline industry in order to understand the situation of the airline industry in the UK after such decision of Brexit. The study provides proper aims and objectives of the study as well as hypothesis bin which the researcher will able to conduct in depth research for meeting the research objectives. The study also will represent proper findings of the information related to the Brexit effects on the airline industry as well as effective discussion and data analysis will be provided which will provide a scope to conduct the research on Brexit and how the airline industry is affected for such condition of the economy.

Background of the study

There was proper cooperation and communication between the UK and the EU in the pre-Brexit period, but the incident of Brexit has significant impacts on the airline industry where the UK is being considered as a larger share of the EU’s airline markets measured by passengers and revenue (Bouoiyour, and Selmi, 2018). Hereby, there is a significant share of the airline industry in the UK’s National Income, in which the revenue generation can be possible in the airline industry, in the post Brexit era, there is many negative impacts which deteriorate the performnace of the airline industry where lack of communication and cooperation hampers the smooth operational activities of the airline industry (Dobruszkes, 2019; Bouoiyour, and Selmi, 2018). It is rationale to conducting in depth research on the Brexit impacts and how it affects the airline industry so that it is possible to acknowledge the impacts of the incident Brexit. Corporate taxation and transfer pricing become higher which raises the issue where the things become costly. Finance and treasury risk are one of the major risk factors after such incident of Brexit, where it also has long run implications for debt availability, treasury derivatives, and currency clearing which are subject to uncertainty across all the industries, not just in airline industry (KPMG, 2016). In addition to these, there exist supply chain risks due to uncertainty in managing outsourced MRO operations, airports, lessors, training and maintenance, regulatory compliance, certifications, agreements with hotels and holiday providers and Information Technology which deteriorates the performnace of the airline industry (Gelhausen, Berster, and Wilken, 2018; KPMG, 2016).

As per the figure above, it can be stated that, there is reduction in the share price of the airline and tour operator in the post Brexit era which improves fluctuation in the airline industry as well as financial market. However, there is positive impacts also where the cooperation and negotiation between EU and the UK will imporve trade and travel and tourism between the countries which raises revenue in ling run (Dhingra, Machin, and Overman, 2017; Walulik, 2019).

The decision for the UK to leave EU has significant and wide-ranging impacts in both economic and regularity context (Badiani, 2019). Through this research, it is possible to analyse the post Brexit era and how the incident of Brexit affects the airline industry of the UK.

Research aims and objectives

The aim of the research is to analyse the effects of the incident of Brexit on the airline industry. The objectives of the study are developed further.

To understand the incident of Brexit

To acknowledge the airline industry activities between the UK and EU member countries

To analyse the impacts of Brexit on the airline industry

To recommend some suitable suggestions for overcoming the impacts and stabilise the airline industry

Research Questions

What is the incident of Brexit and how does it affect the business activities?

What are the activities of the airline industry between the UK and EU member countries?

What are the impacts of Brexit on the airline industry?

What would be the future recommendations for overcoming the impacts and stabilise the airline industry?

Research hypothesis

H1: There is serious impacts of Brexit on the airline industry

H0: There is no such effects of the incident of Brexit on the airline industry

Where, there is one dependent variable and another independent variable.

Independent variable: The incident of Brexit

Dependent variable: Airline industry

Methodology of the research

It is necessary for the researcher to choose appropriate research methodology so that it is possible for the researcher to follow suitable steps for conducting the research study successfully and complete it by fulfilling all its objectives (Bernard, 2017). In this regard, research onion is important to be discussed through which the methods of research can be developed where the researcher can choose the right method which is suitable for conducting this study successfully.

Through research onion, it is possible to select appropriate research philosophy, actions and approaches of the research so that proper in-depth research can be conducted (Bernard, 2017). As per the research philosophy, positivism research philosophy is chosen over the interpretivism and realism, as positivism research philosophy is appropriate for ensuring validity ad objectivity of the research (Bernard, 2017). Apart from that, it provides a scope to the researcher to improve understanding about the research topic though theological perspectives and positive explanation where the information is discussed well. Research approach is also necessary, and, in this study, the researcher will choose deductive approach over inductive research approach. Under inductive research approach, the researcher observes the situation, analyse it and develop proper theory on the basis of hypothesis and observation (Bernard, 2017). However, in the deductive approach, the researcher first understands the exiting theory and practice and then develop hypothesis for observation and analysis. In this particular research, deductive approach is suitable, where the researcher can understand the existing concept and theories and then analyse the collected data and information for further discussion.

Data collection and data analysis are the two important part under the research methodology where the researcher will try to choose the suitable methods for gathering and analysing the collected information so that it is posisbel to meet the research aim and objectives (Bernard, 2017). There are two types of data collection method, one is primary and other is secondary. Under the primary data collection technique, the researcher considers in collecting first-hand information by survey, questionnaire or interview (Bernard, 2017). On the other hand, the secondary data collection method is where the researcher collects the secondary information from the secondary literature sources such as business letters, newspapers, published journals, books, online articles and news websites through which the researcher can collect authentic data and information or conducting the research successfully. In this study, the researcher chooses the secondary data collection methods, under which the researcher can review the existing secondary sources of information such as business letters, newspapers, published journals, books, online articles and news websites which are beneficial for the researcher to gather valid information that in turn provides an opportunity to conduct in depth research on the impacts of Brexit on the airline industry. Under the data analysis technique, there are two ways one is quantitative, and another is qualitative (Bernard, 2017). Under the quantitative data analysis technique, the primary data and information are analysed through graphs, charts and statistical analysis. On the other hand, in the qualitative data analysis, the information is discussed well and analysed ion the basis of existing knowledge and understanding, theories and concepts. Hereby, the researcher will choose the qualitative data analysis technique for conducting this study and analysing the gathered information successfully so that the main research aims which is the effective of Brexit on the airline industry can be fulfilled. Hereby, the researcher will choose the deductive research approach and positivism philosophy for conducting this study. Apart from that, the secondary data collection method will be chosen, and the researcher will analyse the gathered data through the qualitative data analysis technique which is suitable for this particular study.

Research procedure

The research will be conducted step by step by developing proper chapters and following the research methodology so that the research can be completed within effective time and without any ethical considerations. The first chapter is introduction where the researcher will develop the aims ad objectives of the research. Apart from that, proper background of the study and rationale of the study will be discussed so that the researcher can understand the research purpose and the background of the incident of Brexit. In the second chapter, proper literature review will be represented where the researcher will develop proper concepts and existing information about the research topic which is on Brexit and its effects on the airline industry.

In the third chapter, proper methodology of the research will be developed where the researcher will choose suitable methods of conducting the in-depth research successfully by following suitable steps of the study. Proper ethical consideration and the validity of the data and data protection will also be discussed within this chapter so that the researcher will submit the research without any ethical issues. In the fourth chapter, the researcher will represent the findings of the information for further analysis. In the fifth chapter proper discussion and analysis of the gathered data and information will be presented. The last chapter is conclusion and recommendations in which the researcher will draw proper conclusion of the study after effective findings and discussion. Proper recommendations for the airline industry will also be developed for coping up with the incident of Brexit. The chapter wise presentation of the research will provide a scope to the researcher to complete the researcher by following proper literature review, methods and analysis so that it is possible for the researcher to evaluate the impacts of Brexit on the airline industry.

Ethical considerations

As per the ethical consideration, it is necessary for the researcher to maintain the ethical conduct in doing the academic research where the researcher needs to be concerned about the safety and security of the data and information as well as use of the gathered information in the specific manner with proper citation so that the originality of the work can be maintained (Bernard, 2017). In this regard, the researcher tries to maintain integrity and honesty in collecting the information from the secondary literature sources in order to conduct qualitative data analysis process. In this research, the researcher also uses data Protection Act 1998 for maintaining the safety and security of the data and information as well as protect the privacy of the origi8nal work of other researchers. The researcher also uses proper citation for the theories and concepts developed by the authors and other researchers. The safety issue may arise which is related to the use of information collected from online sources and data protection. It is easy to reduce this through ensuring that the collected data and information will be secured, and these are utilised for this research purpose, nit any other purposes. Another possible ethical issue may arise which is related to maintaining confidentiality. It is also possible to reduce this ethical consideration by implementing the Data Protection Act 1998 which helps to maintain confidentiality. The validity and reliability of the collected information are also maintained in this research for managing the originality of the information through which it is easy to conduct in depth research for analysing the impacts of Brexit on the airline industry.

Reference List

Badiani, R., 2019. Outlook on UK-EU Brexit negotiations and possible economic risks. International Economics and Economic Policy, 16(1), pp.5-16.

Bernard, H.R., 2017. Research methods in anthropology: Qualitative and quantitative approaches. London: Rowman & Littlefield.

Bouoiyour, J. and Selmi, R., 2018. Are UK industries resilient in dealing with uncertainty? The case of Brexit. The European Journal of Comparative Economics.

Dhingra, S., Machin, S. and Overman, H., 2017. Local economic effects of Brexit. National Institute Economic Review, 242(1), pp. R24-R36.

Dobruszkes, F., 2019. Air services at risk: The threat of a hard Brexit at the airport level. Environment and Planning A: Economy and Space, 51(1), pp.3-7.

Gelhausen, M.C., Berster, P. and Wilken, D., 2018. A new direct demand model of long-term forecasting air passengers and air transport movements at German airports. Journal of Air Transport Management, 71, pp.140-152.

Lawless, M., 2018. Irish-UK services trade and Brexit (No. 595). ESRI Working Paper.

Walulik, J., 2019. Brexit and Aviation Law. Routledge, Taylor & Francis Group.