Frankfurt has overtaken London’s Heathrow as the busiest airport in Europe, prompting the chief of British Airways to demand the Government rapidly sets up a testing programme to win back customers.
Heathrow said that its passenger numbers were down by more than 80 per cent in August to 1.4 million, allowing its key German continental rival to overtake, according to the British airport. It said it was an “early warning that Britain’s economy will fall behind if we don’t protect our global trading network”.
Long haul markets remained sharply down because of the UK government's 14-day quarantine policy from travel for destinations including Portugal and the United States. The move has hit British Airways hard. It flies to more than 100 countries, many of them affected by travel restrictions.
The airline’s chief executive Alex Cruz told MPs on Wednesday that it was at 20 per cent of capacity during July and said the crisis outstripped the worst days of the 2007/08 financial crash and the plunge in passenger numbers after the September 11, 2001 attacks on the United States.
“Covid-19 has devastated our business and our sector and we are still fighting for our own survival,” he said.
He has urged the government to set up a scheme between London and New York to test passengers as they travel and five days later to ensure they remain virus-free.
“It’s incredibly important that we reach a testing regime of some sort as quickly as possible so we can reduce that quarantine time to the minimum possible,” he said.
The airline has come under fire for cutting 12,000 jobs and changing the terms and conditions of its staff. Mr Cruz said the airline was taking every “measure possible to make sure that we can actually make it through this winter”.
“We do not see a short-term coming back of our passengers,” he told MPs on the transport committee.
Heathrow has complained that more than 30 airports, including Frankfurt, are already using testing as a safe alternative to a 14-day quarantine.
Its chief executive, John Holland-Kaye, said that Britain’s economic recovery was falling behind because of the impact on international travel.
“The Government has announced it is looking at the options for reducing quarantine for passengers who test negative for Covid-19 but ministers urgently need to turn words into action. Every day of further Government delay costs British jobs and livelihoods.”
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Empire of Enchantment: The Story of Indian Magic
John Zubrzycki, Hurst Publishers
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Medicus AI
Started: 2016
Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh
Based: Vienna, Austria; started in Dubai
Sector: Health Tech
Staff: 119
Funding: €7.7 million (Dh31m)
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