Covid-19 has brought the travel industry to a halt, grounding airline fleets worldwide. British Airways is battling its pilots' union that is against further job cuts. Bloomberg
Covid-19 has brought the travel industry to a halt, grounding airline fleets worldwide. British Airways is battling its pilots' union that is against further job cuts. Bloomberg
Covid-19 has brought the travel industry to a halt, grounding airline fleets worldwide. British Airways is battling its pilots' union that is against further job cuts. Bloomberg
Covid-19 has brought the travel industry to a halt, grounding airline fleets worldwide. British Airways is battling its pilots' union that is against further job cuts. Bloomberg

British Airways warns union it will fire pilots as it looks to legally challenge UK’s quarantine rule


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British Airways is battling a ­pilots’ union that is resisting further job cuts as the airline initiates a legal process to block the UK’s 14-day self-isolation plan for arrivals, which starts on Monday.

BA warned the British Airline Pilots’ Association that it would dismiss all of its 4,300 pilots and rehire them on individual contracts unless the union reached an agreement with the company.

The airline, which is negotiating a planned reduction of 1,130 roles represented by Balpa, sought another 125 pilot job cuts last Wednesday, the union said.

“This has seriously undermined our talks, which now hang by a thread,” Brian Strutton, the general secretary of the union, said.

“It calls into question whether BA is even capable of conducting industrial relations properly and whether anything they say can be trusted.”

A representative for the airline, which is working on cutting 12,000 jobs across the company, said BA was acting now to protect as many jobs possible.

The representative said the industry was “facing the deepest structural change in its history, as well as facing a severely weakened global economy”.

Concerned that the self-isolation requirement would block its plans to restart services in July, British Airways’ parent IAG sent a letter to the Home Office to start the process to block the quarantine, which could lead to a lawsuit, Bloomberg reported.

The letter, also signed by Europe’s two biggest discount operators, Ryanair and easyJet, pointed to how the measures will apply to travellers from countries with lower infection rates than the UK, and disproportionately affect those from England more than those from Scotland, Wales and Northern Ireland. The quarantine is being introduced as the airlines try to salvage the normally busy summer season.

The letter said the 14-day quarantine for travellers was also more stringent than the one for those who test positive for the virus.

“In our view, the government has failed to identify a valid justification for the blanket nature of the regulations, more especially given the extremely severe nature of the self-isolation provisions that apply,” the letter said.

The Home Office declined to comment on the potential legal action on Saturday. On Friday, James Slack, a spokesman for British Prime Minister Boris Johnson, told reporters that the government wants to work with the industry as the country moves through the pandemic.

If BA and the other operators push ahead with the legal challenge, a court proceeding known as a judicial review will be held in London’s High Court.

The transport sector is no stranger to judicial reviews. Earlier this year, the procedure was used to force the government to take full account of climate change agreements over its plans for a third runway at Heathrow Airport.

The procedure allows members of the public and corporations to hold the government to account over policy decisions.

The process is designed to weigh the lawfulness of how a government decision has been reached, rather than whether the decision is right or wrong.

Public bodies that lose judicial review cases can make the same decision again as long as they use the right procedures.

Like airlines worldwide, IAG is slashing costs to contend with a historic drop in travel.

Operators in Europe have signalled plans to eliminate more than 50,000 positions since the onset of the coronavirus pandemic, including 10,000 last Wednesday at Germany’s Lufthansa.

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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

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The Buckingham Murders

Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu

Director: Hansal Mehta

Rating: 4 / 5

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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COMPANY%20PROFILE
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Find the right policy for you

Don’t wait until the week you fly to sign up for insurance – get it when you book your trip. Insurance covers you for cancellation and anything else that can go wrong before you leave.

Some insurers, such as World Nomads, allow you to book once you are travelling – but, as Mr Mohammed found out, pre-existing medical conditions are not covered.

Check your credit card before booking insurance to see if you have any travel insurance as a benefit – most UAE banks, such as Emirates NBD, First Abu Dhabi Bank and Abu Dhabi Islamic Bank, have cards that throw in insurance as part of their package. But read the fine print – they may only cover emergencies while you’re travelling, not cancellation before a trip.

Pre-existing medical conditions such as a heart condition, diabetes, epilepsy and even asthma may not be included as standard. Again, check the terms, exclusions and limitations of any insurance carefully.

If you want trip cancellation or curtailment, baggage loss or delay covered, you may need a higher-grade plan, says Ambareen Musa of Souqalmal.com. Decide how much coverage you need for emergency medical expenses or personal liability. Premium insurance packages give up to $1 million (Dh3.7m) in each category, Ms Musa adds.

Don’t wait for days to call your insurer if you need to make a claim. You may be required to notify them within 72 hours. Gather together all receipts, emails and reports to prove that you paid for something, that you didn’t use it and that you did not get reimbursed.

Finally, consider optional extras you may need, says Sarah Pickford of Travel Counsellors, such as a winter sports holiday. Also ensure all individuals can travel independently on that cover, she adds. And remember: “Cheap isn’t necessarily best.”

Results

6.30pm: Madjani Stakes Group 2 (PA) Dh97,500 (Dirt) 1,900m, Winner: RB Frynchh Dude, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

7.05pm: Maiden (TB) Dh82,500 (D) 1,400m, Winner: Mnasek, Dane O’Neill, Doug Watson.

7.40pm: Maiden (TB) Dh82,500 (D) 1,600m, Winner: Grand Dubai, Sandro Paiva, Ali Rashid Al Raihe.

8.15pm: Handicap (TB) Dh87,500 (D) 2,200m, Winner: Meqdam, Sam Hitchcock, Doug Watson.

8.50pm: Dubai Creek Mile Listed (TB) Dh132,500 (D) 1,600m, Winner: Thegreatcollection, Pat Cosgrave, Doug Watson.

9.25pm: Conditions (TB) Dh120,000 (D) 1,900m, Winner: Sanad Libya, Richard Mullen, Satish Seemar.

10pm: Handicap (TB) Dh92,500 (D) 1,400m, Winner: Madkhal, Adrie de Vries, Fawzi Nass.

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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MATCH INFO

Tottenham Hotspur 0 Everton 1 (Calvert-Lewin 55')

Man of the Match Allan (Everton)

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)