Emirates Airline Chief Warns of Brexit Impact on Europe -- Update

By Robert Wall 

DUBLIN--Emirates Airline President Tim Clark said a British exit from the European Union could send the European single currency into "free fall."

While most European airline executives have focused on the ramifications on the U.K. economy from a vote to leave, Mr. Clark said "my concern is what would happen not so much to the U.K., but the rest of the European Union."

The U.K. is set to vote on June 23 in a referendum on whether to remain in the EU or exit.

Mr. Clark said a British exit could compound economic woes in continental Europe, potentially depressing demand and undermining the value of the euro.

"Europe will be shocked and stunned by what happens," he said at the sidelines of the annual meeting of International Air Transport Association.

Potential instability and volatility triggered by a so-called Brexit are a big concern for airlines, Mr. Clark said.

Michael O'Leary, Chief Executive of Europe's biggest budget airline Ryanair Holdings PLC as been lobbying for the U.K. to remain in the European trade group. He has said an exit could slow economic growth and make the U.K. less attractive for future investments.

As for the U.S. presidential election, Mr. Clark said he viewed the possibility of a victory by Donald Trump, the presumptive Republican Party nominee, as a good news for the dollar even though demand in the U.S. could soften in the run-up to the vote.

A Trump presidency could boost the dollar and would "strengthen the economy in many ways." Mr. Clark said he viewed Mr. Trump as "a man of business" despite the heated rhetoric during the campaign.

Write to Robert Wall at [e-mail]

(END) Dow Jones Newswires

June 03, 2016 04:03 ET (08:03 GMT)

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