EasyJet to set up operating company in another EU state

Budget airline easyJet says it plans to set up an operating company in another European Union member state to ensure that it can continue serving the market after Britain leaves the bloc.

EasyJet, in results released Tuesday, says the move will "secure the flying rights of the 30 percent of our network that remains wholly within and between EU states, excluding the U.K."

Chief Executive Officer Carolyn McCall says the change won't prevent easyJet from being based in Britain and that the company's headquarters will remain in Luton, about 30 miles (50 kilometers) north of London.

The company did not say where the new entity would be based.

EasyJet says setting up the company will cost it about 10 million pounds ($12.4 million) over two years, mostly to re-register aircraft.