Greater government intervention in airlines amid the pandemic will limit consolidation within the industry in the next three to five years.
Foreign ownership rules and a liquidity crunch will also slow down consolidation in the industry, Alexandre de Juniac, outgoing director general of the International Air Transport Association, told The National.
“I do not believe consolidation will be very active in the coming three to five years because you still have foreign ownership limitations everywhere and because the intervention of states has increased, potentially through shareholding," he said.
“I do not see them giving up their shares in a company in which they have invested taxpayer money to sell to a neighbouring country or partner.”
Consolidation will also be an expensive proposition for cash-strapped airlines, said Mr de Juniac.
“I do not think airlines have the money to commit to any consolidation in the next three to five years ... they don’t have a penny to do that.”
Governments have poured in aid worth $225 billion to prop up airlines ravaged by the Covid-19 crisis that has shut borders, hit revenue and grounded aircraft.
Iata has called on governments to support a restart in international travel through stimulus measures such as subsidies for air tickets, routes and domestic journeys.
The aviation industry will have fewer players operating smaller networks in the next three to five years, with the possibility of further bankruptcies given that many small and medium-sized airlines remain fragile, Mr de Juniac said.
A shrinking industry “is not good news” for the market and it is “not good news for passengers”, he said.
“It means less destinations, less connectivity and – perhaps, in some cases – higher fares and reduced competition.”
The structure of the industry will remain unchanged, centred around budget and full-service airlines that will overcome Covid-induced challenges – mainly due to government support.
“Long-haul, low-cost is still a question mark,” he said. “It is in a very, very difficult situation. I do not know if and when it will restart.”
Mr de Juniac said the industry had probably reach the bottom of the crisis.
“I hope there will be no fourth or fifth wave with a different mutation of the virus that will resist the vaccine,” he said.
Mr de Juniac expects a recovery that is linked to vaccination drives and efforts to contain the spread of the virus.
“The recovery will accelerate during the second half of 2021 and in 2022,” he said.
The resumption of travel could be “very fast and very strong”, so governments and the industry must be prepared, he said.
The recovery will accelerate during the second half of 2021 and in 2022
The pandemic has had three main lessons, with the first being that airlines need to strengthen their balance sheets as the industry is “too fragile”. They also need to be better prepared with processes and equipment and, thirdly, to continue to advocate international collaboration between countries, as well as between governments and the aviation industry, said Mr de Juniac.
“We cannot deal with a world problem like this as we have done – completely fragmented, no collaboration,” he said. “Frankly, it is unacceptable.”
The executive called on governments to form a strategy to reopen economies and borders while they vaccinate and conduct tests to curb the spread of the pandemic.
“This gives people more reason to follow tough measures that are necessary in the short-term, with a view of an end in sight,” he said.
The major challenge for the industry is to ensure that travel is safe through the adoption of reliable and simple processes that are homogenous and based on user-friendly technology.
The organisation has touted the Iata Travel Pass, a digital health passport, as a potential solution.
To build back greener, the 290-member body is considering “more ambitious” climate change targets and is working on a plan, Mr de Juniac said.
“We think that we should do more. We will probably, in the coming months, set up more ambitious targets. The industry is ready for that. We are convinced we have to do it,” he said.
“Even in this crisis we are still thinking long term to comply with our responsibility for the planet,” he said.
The industry contributes 2 per cent of global carbon emissions and pledged to reduce net emissions to half of 2005 levels by 2050.
Mr de Juniac said biofuel would be a key contributor to carbon reduction in the next 20 years because “it is safe and it works”.
There is need for a commitment from the industry to use sustainable aviation fuel, in addition to significant government investment to scale up its production and distribution networks.
“It is really surprising to see that governments have invested billions and billions on renewable energy everywhere and they are not putting a penny into sustainable aviation fuels,” he said.
Meanwhile, Iata continues to maintain and push for its gender balance programme called 25 by 2025.
Even in this crisis we're still thinking long term to comply with our responsibility for the planet
The Iata boss will hand over the reins to IAG veteran Willie Walsh in April, after more than four years at the helm.
The start of Mr de Juniac’s tenure at the lobby group was marked by a decade of airline profitability.
However, he faced mounting challenges that rocked the industry – from two Boeing 737 Max crashes to Britain’s complicated exit from the EU, the long-term crisis of climate change and Covid-19.
Mr de Juniac, whose motto was aviation is “the business of freedom”, said this has never been more true than now.
“This crisis has shown that perfectly, more than I could have ever known, unfortunately,” he said.
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The%20specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
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
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
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
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Rashid & Rajab
Director: Mohammed Saeed Harib
Stars: Shadi Alfons, Marwan Abdullah, Doaa Mostafa Ragab
Two stars out of five
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20synchronous%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E660hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C100Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E488km-560km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh850%2C000%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EOctober%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Need to know
Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Liz%20Truss
%3Cp%3EMinisterial%20experience%3A%20Current%20Foreign%20Secretary.%0D%3Cbr%3E%0DWhat%20did%20she%20do%20before%20politics%3F%20Worked%20as%20an%20economist%20for%20Shell%20and%20Cable%20and%20Wireless%20and%20was%20then%20a%20deputy%20director%20for%20right-of-centre%20think%20tank%20Reform.%0D%3Cbr%3E%0DWhat%20does%20she%20say%20on%20tax%3F%20She%20has%20pledged%20to%20%22start%20cutting%20taxes%20from%20day%20one%22%2C%20reversing%20April's%20rise%20in%20National%20Insurance%20and%20promising%20to%20keep%20%22corporation%20tax%20competitive%22.%3C%2Fp%3E%0A
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors