Post-Brexit trade talks enter crunch week

Anti-Brexit protester Steve Bray demonstrates in front of the conference center where Brexit trade deal negotiations are taking place in London. (Reuters)
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Updated 16 November 2020
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Post-Brexit trade talks enter crunch week

  • British, EU negotiators determined not to give ground

BRUSSELS: British and EU negotiators launched a desperate final stretch of trade talks on Sunday, with both sides determined not to give ground, despite the looming threat of failure.

Britain’s David Frost returned to meet his EU counterpart Michel Barnier after a shake-up in Number 10 personnel left some wondering if London might soften its stance.

But there was no sign of that in the message that Prime Minister Boris Johnson’s envoy tweeted as he headed back to Brussels.

“We are working to get a deal, but the only one that’s possible is one that is compatible with our sovereignty and takes back control of our laws, our trade, and our waters,” Frost said.

“That has been our consistent position from the start and I will not be changing it.”

On Friday, Johnson’s senior aide Dominic Cummings — one of the architects of the “leave” victory in the 2016 Brexit referendum — was sacked, amid faction fighting in Number 10, but there has been no sign this will change the direction of trade talks.

Britain left the EU in January, but the full economic effect of the bitter divorce will be felt at the end of the year when an 11-month transition period closes.

Relations between Britain and Europe could then be governed by a trade deal, but only if negotiations currently underway deliver, which is hardly guaranteed given still wide divergences.

Frost said the parties now “largely have common draft treaty texts, though significant elements are of course not yet agreed. We will work to build on these and get an overall agreement if we can.

“But we may not succeed,” he warned.

Officials on both sides of the Channel are looking to an EU leaders video summit on Thursday as the de facto last chance for a breakthrough, leaving just enough time for the EU Parliament to ratify an agreement.

This gives Barnier and Frost four days and nights to bridge differences that have remained unchanged since March.

“Logic and reason would all point to a deal,” said one EU diplomat with a close eye on the talks.

“But if anything became clear in the past three years, when it comes to Brexit, economic rationale and pure logic are not enough to explain what’s happening,” the diplomat said.

Failure would see Britain’s ties with the European economy governed by WTO rules, slapping high tariffs, quotas, and other impediments to cross-Channel trade that flowed unencumbered for decades.

Today’s British economy, the sixth biggest in the world, was built on EU membership, with the London financial hub and a tapestry of car plants and multinationals enjoying access to the EU’s 450 million consumers and complex supply chains.

Given the danger, British big business implored the government to find a middle ground and replicate the benefits of membership as closely as possible, even if this came with the condition that the UK align closely with EU rules.

But, when the pro-Brexit Johnson became prime minister last year, London went the other way, asking for a zero-tariff deal on goods and services that must, he insisted, leave the country sovereign to make its own decisions.

With positions starkly apart, the talks became bogged down on three core issues.

Fishing has been the least economically significant but most politically explosive issue, with Europe eager to keep open access to the UK’s bountiful waters.

Fishermen in France, Belgium, Denmark, and the Netherlands have trawled British waters for centuries, but London wants access rethought to satisfy Britain’s coastal communities, which voted strongly for Brexit.

Belgian Greens MEP Philippe Lamberts said, on fishing, Europeans giving ground was “inevitable” but that any trade deal agreed now “won’t be great.”

The other obstacle is the lack of faith among the Europeans that once outside the EU single market Britain will play fair in terms of competition rules, even with a deal.

This view sharpened when Johnson’s government introduced a bill in parliament that effectively ripped up the terms of the divorce pact, potentially in violation of international law.

Under the trade deal, will British companies enjoy easier rules on the environment or food safety only to sell their goods cheaply in the EU, where their rivals must abide by stricter measures?

Seeking to maintain what it calls a “level playing field,” the EU is demanding that Britain commit to not backtrack on standards as well as to cooperate on how these evolve in the future.

The EU is also worried about how Britain will subsidize companies. Too much taxpayer largesse could prove unfair toward firms in Europe, where state aid oversight is strict.

To solve those problems, the EU is insisting that the deal hold some sort of emergency mechanism, that could swiftly inflict penalties if either side breaks the terms.

“Either the British accept and we then move on to difficult negotiations on fisheries, or they refuse, and we will then be out of time and the negotiations fail,” a senior European diplomat warned.


PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025

Updated 27 February 2026
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PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025

RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.

According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.

Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries. 

The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.

AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.

AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.

Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”

He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”

Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.

AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance. 

Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.