PRIME Minister Theresa May has been warned planes could be grounded across the UK if Britain leaves the EU without a one-off air deal as concerns grow about life after Brexit.
If Britain has to rely on World Trade Organisation (WTO) rules, UK air traffic control would not be given the rights it needs to operate.
This would mean Britain would need an overall agreement to ensure air traffic can function as normal, according to the Institute of Economic Affairs.
The majority of UK-based airlines would be stripped of their operating licenses for the 27 EU countries, if there was no agreement in place with the EU’s Single Aviation Market (SAM).
As some agreements had also been made through the EU, planes would also not be able to fly in airspace over these areas.
These countries include the United States, Canada and Switzerland.
Julian Jessop, the IEA’s chief economist, said: “If there are no alternative arrangements in place, it would be as bad as the worst fears suggest: planes would not be allowed out to fly.”
But the report did say the government would still have some opportunity to arrange a solution.