Emirates airline president Tim Clark speaks at the Iata Safety Conference on Tuesday. Photo: Iata
Emirates airline president Tim Clark speaks at the Iata Safety Conference on Tuesday. Photo: Iata
Emirates airline president Tim Clark speaks at the Iata Safety Conference on Tuesday. Photo: Iata
Emirates airline president Tim Clark speaks at the Iata Safety Conference on Tuesday. Photo: Iata

Global aviation industry failing to prepare for future growth, Emirates airline boss says


Deena Kamel
  • English
  • Arabic

The aviation industry needs to prepare for the future to address the expected higher levels of travel demand, climate change challenges and operational safety, Emirates airline president Tim Clark has said.

Industry investment in air navigation systems, new technology, skilled aviation workers and infrastructure are inadequate, he said in a keynote speech on Tuesday at the International Air Transport Association's Safety Conference in Dubai.

"These days a few things are keeping me awake and one of them is future readiness," Mr Clark said.

"Are we as an industry truly ready to tackle the next 20 to 30 years? I fear that what I’ve been seeing so far are signs of an industry failure to provide the right infrastructure for the future. And more worrying, a dearth of leadership."

"How can we operate safely if we are not investing in systems, in technologies, in people and in bricks-and-mortar infrastructure?"

The aviation veteran lambasted plane-makers over repeated delays of aircraft deliveries as the airline steps up its operations to meet a surge of travel demand after bouncing back from the Covid-19 pandemic.

"How can we be assured of safety when the biggest manufacturers in commercial aviation are failing to deliver aircraft programmes to the standards and timelines requested to replace ageing fleets? Where is the accountability and oversight from their senior managers?" Mr Clark said.

Emirates has previously criticised US aircraft manufacturer Boeing for years-long delays to its 777X programme, which the airline warned would hamper its complex fleet plans.

Supply chain issues have also left suppliers and manufacturers struggling to source everything from raw materials to parts to keep the production process moving.

Highlighting the industry's shortcomings in dealing with the massive resurgence of travel demand this summer, the Emirates boss also highlighted some airports' failure to foresee the recovery after the pandemic and the reopening of global business and tourism.

"Just look at the shambolic situations we found ourselves in at many airports this summer," Mr Clark said. "We can hardly cope with current demand, not to mention future growth. And how many countries are investing to improve and expand airport infrastructure, and modernise air navigation systems?"

European hubs such as London's Heathrow and Amsterdam's Schiphol had to impose passenger caps amid long queues, delays and baggage problems due to a staff shortage.

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Emirates A380 - in pictures

  • Visitors watch an Airbus A380, sporting the colors of air carrier Emirates, take off during the Dubai Air Show on November 22, 2005. AFP
    Visitors watch an Airbus A380, sporting the colors of air carrier Emirates, take off during the Dubai Air Show on November 22, 2005. AFP
  • Workers of Airbus celebrate in front of the Airbus A380 on July 28, 2008 in Hamburg, Germany. The world's largest passenger liner, built by the European aircraft manufacturer Airbus, is delivered to the Emirates airline. Getty Images
    Workers of Airbus celebrate in front of the Airbus A380 on July 28, 2008 in Hamburg, Germany. The world's largest passenger liner, built by the European aircraft manufacturer Airbus, is delivered to the Emirates airline. Getty Images
  • A general view of the economy class on board of the Airbus A380 on July 28, 2008 in Hamburg, Germany. Getty Images
    A general view of the economy class on board of the Airbus A380 on July 28, 2008 in Hamburg, Germany. Getty Images
  • Emirates Airlines has launched a new daily A380 service from Dubai to Munich with its first flight at Munich Airport Franz Joseph Strauss on November 25, 2011 in Munich, Germany. Getty Images
    Emirates Airlines has launched a new daily A380 service from Dubai to Munich with its first flight at Munich Airport Franz Joseph Strauss on November 25, 2011 in Munich, Germany. Getty Images
  • Emirates chairman Sheikh Ahmed bin Saeed Al Maktoum holds a model of the Airbus Industrie's new A3XX superjumbo jet at the Farnborough Air Show, July 24, 2000. Emirates airline is buying 10 of the jets from Airbus Industrie in a deal worth more than $1.5 billion. PA Images via Reuters
    Emirates chairman Sheikh Ahmed bin Saeed Al Maktoum holds a model of the Airbus Industrie's new A3XX superjumbo jet at the Farnborough Air Show, July 24, 2000. Emirates airline is buying 10 of the jets from Airbus Industrie in a deal worth more than $1.5 billion. PA Images via Reuters
  • Sheikh Ahmed bin Saeed Al Maktoum and Thomas Enders, CEO of Airbus, pose for photographers after announcing that Emirates is to purchase more Airbus A380 aircraft at the ILA Berlin Air Show on June 8, 2010 in Berlin, Germany. Emirates will buy an additional 32 A380 aircraft, bringing its total A380 fleet to 90 aircraft. Getty Images
    Sheikh Ahmed bin Saeed Al Maktoum and Thomas Enders, CEO of Airbus, pose for photographers after announcing that Emirates is to purchase more Airbus A380 aircraft at the ILA Berlin Air Show on June 8, 2010 in Berlin, Germany. Emirates will buy an additional 32 A380 aircraft, bringing its total A380 fleet to 90 aircraft. Getty Images
  • Ruler of Dubai Sheikh Mohammed bin Rashid takes a tour of the Emirates A380 airliner during the opening ceremony of the Dubai Airshow on November 17, 2013. AFP
    Ruler of Dubai Sheikh Mohammed bin Rashid takes a tour of the Emirates A380 airliner during the opening ceremony of the Dubai Airshow on November 17, 2013. AFP
  • Tom Enders, Sheikh Ahmed bin Saeed Al Maktoum and Tim Clark, President of Emirates, pose for media during a delivery ceremony of Emirates' 100th Airbus A380 at the German headquarters of aircraft company Airbus in Hamburg-Finkenwerder, November 3, 2017. Reuters
    Tom Enders, Sheikh Ahmed bin Saeed Al Maktoum and Tim Clark, President of Emirates, pose for media during a delivery ceremony of Emirates' 100th Airbus A380 at the German headquarters of aircraft company Airbus in Hamburg-Finkenwerder, November 3, 2017. Reuters
  • Emirates receives last A380 in November 2021. Courtesy Emirates
    Emirates receives last A380 in November 2021. Courtesy Emirates
  • Emirates A380 Premium Economy. Courtesy Emirates
    Emirates A380 Premium Economy. Courtesy Emirates
  • Emirates A380 Premium Economy. Courtesy Emirates
    Emirates A380 Premium Economy. Courtesy Emirates
  • Emirates A380 Economy Refreshed. Courtesy Emirates
    Emirates A380 Economy Refreshed. Courtesy Emirates
  • Emirates A380 Business Class Refreshed. Courtesy Emirates
    Emirates A380 Business Class Refreshed. Courtesy Emirates
  • Emirates A380 Shower Spa First Class. Courtesy Emirates
    Emirates A380 Shower Spa First Class. Courtesy Emirates

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Earlier this year, major international airlines were caught off guard by safety concerns triggered by a major C-band fifth-generation (5G) wireless rollout in the US, sending them scrambling to alter flight plans or cancel them altogether.

"How did we end up in shambles at the 11th hour ... with the roll-out of 5G telecoms in the United States?" Mr Clark said.

"What kind of systems do we have that, in this day and age, pilots with fake licences are found operating aircraft with hundreds of human lives on board? Has there been sufficient investment in support programmes to build a pool of skilled aviation workers?"

Government agencies, regulators, airlines, airports, ground handlers, air navigation services, manufacturers and supply chain players must all play their part to address these industry issues, Mr Clark said.

Other challenges to operational safety include providing more mental health support to aviation workers, addressing the shortage in skilled staff, flying sustainably, addressing cyber-security threats and designing a safety framework for eVTOLs (Electric vertical take off and landing vehicles), speakers at the Iata Safety Conference said.

With the kind of growth and innovation that the industry continues to register in areas such as advanced air mobility and the number of retirements hastened by the pandemic, the industry needs to develop highly skilled talent, Billy Nolen, acting administrator of the US Federal Aviation Administration, told the conference.

"This industry needs new people, including those with new skills and new abilities," he said.

"Government and industry must continue to work together and find more creative ways to build a future workforce and help them develop the advanced skill sets they all need to match [these] advancements."

First Person
Richard Flanagan
Chatto & Windus 

Scorecard:

England 458 & 119/1 (51.0 ov)

South Africa 361

England lead by 216 runs with 9 wickets remaining

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

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7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The specs

Engine: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

Updated: October 26, 2022, 5:13 AM