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

LONDON, July 1 (Reuters) - EasyJet (Other OTC: EJTTF - news) 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 signalled 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.

"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 spokesman said.

Should Britain be able to negotiate access to the single market following Brexit, nothing will change for airlines.

McCall told Reuters on Tuesday the airline has sped up talks on setting up an air operating certificate (AOC) in a different EU country.

An AOC from another EU country would enable easyJet to continue to fly across Europe, supplementing its UK AOC which enables it to fly UK routes.

A German aviation industry source said easyJet would be welcomed should it want to seek an AOC in Germany but that the company would have to invest in Germany and likely give up Luton as its headquarters.

easyJet warned on third quarter profit on Monday, blaming strike action by French air traffic controllers, congestion issues at Gatwick airport and severe weather.

Shares (Berlin: DI6.BE - news) in the firm have fallen 17 percent over the last week. They were up 0.7 percent at 1,094.5 pence at 1139 GMT. (Reporting by James Davey and Victoria Bryan; Editing by Alexander Smith)