Impact of Brexit on Airlines and Consumer Price Inflation in the UK

Question and individual
reflective statement

Table of Contents
INTRODUCTION.......................................................................................................................................3
A. Impact of Brexit on airlines................................................................................................................3
B. Explain why consumer price inflation in the UK has risen from 2016 to 2018...................................3
How this may affect the airlines firms in the UK.....................................................................................3
How the Bank of England can reduce its inflation rate to its target level.................................................4
CONCLUSION...........................................................................................................................................4
REFERENCES............................................................................................................................................5

INTRODUCTION
Every business affected due to the uncertainty of the Brexit and it can provide the adverse
impact on each and every industry and aviation industry is one of them which also affected the
most. The main motive of this report is to discuss about the impact of Brexit on the airlines and
explain that why consumer price inflation in United Kingdom has risen.
MAIN BODY
A. Impact of Brexit on airlines
Due to the situation of Brexit, now industry wants to clarify from UK government & also EU
institutions on their transitionary agreement. Now industry continuously makes case for the
comprehensive EUUK airline agreement in longer terms. People now no longer enjoy the flight from UK
to EU and EU airlines now n longer enjoy the domestic UK traffic flight (Janse van Nieuwenhuizen,
2018). Due to Brexit, it affected the disruption of air services related agreement, air service agreement
mainly come into the question & now be renegotiated, improve border control & passengers management,
restricted movements of the goods, reduce the airlines revenue (Joakim Rutgersson, 2019).
B. Explain why consumer price inflation in the UK has risen from 2016 to 2018
The inflation rate for CIP (consumer price index) in UK fell to 0.4 % in February 2021.it is
analysed that CPI rate declined since 2018 and indicated the prices in UK been falling. Consumer price
index mainly involve the owners occupiers housing costs and consider the 12 months inflation rate that
was 2.3% in the month May 2018 and it up from the percentage of 2.2 in April 2018. As raising the fuel
prices that mainly produce the fuel in large upward contribution to change the rate between the April to
may 2018. It is analysed that upward Provide impact from air fears which mainly rose between April to
may but fell between same two months before a year and it influence the timing of the Easter (Consumer
price inflation, UK: May 2018).
How this may affect the airlines firms in the UK.
CPI has included the airlines fares as an effective component of public transport index. As per the
public transport index is mainly published in the all CPI areas(Oxford Analytica ). Airlines fare index
published monthly basis in US and other countries level & also eligible for the pricing that are
continuously schedule on the basis of international and domestic commercial airlines travel and trips on
the certified departing from all cities in the CPI.