EasyJet says no decision on HQ until knows UK's new deal with EU

LONDON (Reuters) - EasyJet said it will not decide whether to relocate its legal headquarters until Britain's new relationship with the European Union is clear, following a report on Friday which said its CEO had suggested a move from the UK was almost inevitable. A spokesman for the British budget airline, responding to a Sky News report which also said easyJet has opened talks with EU member states' aviation regulators about relocating its headquarters, said easyJet wants to prepare for all eventualities. The report said easyJet Chief Executive Carolyn McCall signalled in private meetings this week that it would need to move its legal HQ in the wake of Britain's vote to leave the EU. EasyJet is likely to be the European carrier most affected by a formal Brexit because it needs an EU air operator's certificate (AOC) to fly on routes between other EU member states, such as Berlin-Brussels, or to offer domestic routes within another member state as part of the bloc's single aviation area. Analysts estimate such routes make up about a third of its business. In both Germany and France, for example, obtaining an AOC would mean the carrier needs to have its headquarters in that country and its planes would have to be registered there, representatives of those countries' aviation authorities told Reuters. A German aviation industry source said that would likely mean easyJet has to move some administrative roles out of its headquarters in Luton, north of London, rather than all their operations. "Issues around legal entity, or other structural issues, we don't need to make those decisions ... until we know what the outcome of the (UK/EU) talks will be," the easyJet spokesman said. Should Britain be able to negotiate continued access to the EU's single market following Brexit, nothing will change for airlines. McCall told Reuters on Tuesday the airline was formalising talks on setting up an AOC in a different EU country. Other carriers that hold multiple AOCs include Norwegian Air Shuttle and IAG , which groups British Airways, Iberia, Aer Lingus and Vueling. Irish carrier Ryanair , whose main source market is the UK, has also said it will obtain a UK AOC should it need to. easyJet warned on third-quarter profits on Monday, blaming strike action by French air traffic controllers, congestion issues at Gatwick airport and severe weather. Shares in the firm have fallen 17 percent over the last week. On Friday they were up 0.7 percent at 1,094.3 pence at 1400 GMT. (Reporting by James Davey and Victoria Bryan; Additional reporting by Cyril Altmeyer in Paris; Editing by Alexander Smith, Greg Mahlich)