• Travellers to the UK this summer should brace themselves for disruptions and changes to flight schedules. Reuters
    Travellers to the UK this summer should brace themselves for disruptions and changes to flight schedules. Reuters
  • Officials at Heathrow Airport have announced a cap on flights over the summer. Photo: Jonathon Heyward / Twitter
    Officials at Heathrow Airport have announced a cap on flights over the summer. Photo: Jonathon Heyward / Twitter
  • The cap on flights is aimed at cutting huge queues. AP
    The cap on flights is aimed at cutting huge queues. AP
  • Airlines were told to stop selling tickets to the west London airport. AP
    Airlines were told to stop selling tickets to the west London airport. AP
  • Uncollected suitcases pile up at Heathrow's Terminal Three baggage reclaim, as British Airways axed another 10,300 short-haul flights up to the end of October. AFP
    Uncollected suitcases pile up at Heathrow's Terminal Three baggage reclaim, as British Airways axed another 10,300 short-haul flights up to the end of October. AFP
  • Lines of passenger luggage lie arranged outside Terminal 2 at Heathrow Airport. Reuters
    Lines of passenger luggage lie arranged outside Terminal 2 at Heathrow Airport. Reuters

Etihad to keep London Heathrow flights at full capacity for the month of July


Selina Denman
  • English
  • Arabic

Etihad Airways will continue to operate five daily return flights between Abu Dhabi and London Heathrow for the rest of July, despite requests from Britain’s busiest airport for operators to cut capacity to ease congestion.

“We will be operating all five of our daily flights to and from London at full capacity through to the end of July and are awaiting further information on the airport's longer-term plans for August,” Etihad said in a statement.

“Etihad is working closely with airport stakeholders at Heathrow to minimise any disruption to our operation and our guests over the summer holidays.

“Considering the situation at Heathrow, we have made some minor schedule changes to ensure the integrity of our operation and to avoid a larger disruption to our guests. Our priority over the coming months is to maintain the resilience of our operation and to protect the travel plans of our customers flying to and from Heathrow.”

On Thursday, an Etihad flight from London to Abu Dhabi set off more than three hours earlier than scheduled "to avoid peak congestion".

Heathrow asked airlines this week to stop selling some tickets for summer flights, limiting the total number of daily passengers flying from the hub to 100,000. The airport has been marred by operational issues in recent weeks resulting in flight cancellations, lengthy check-in queues for passengers and problems with baggage handling. Heathrow and other European airports are struggling to cope with surging demand and staff shortages following huge layoffs during the pandemic.

A Heathrow representative did not directly address the Etihad announcement; instead, they repeated remarks made earlier this week about how the airport was forced to impose cuts after failing to find a solution with airlines following months of consultations.

The demands were initially rejected by major airlines including Virgin Atlantic, Emirates and British Airways, which said they would continue their services as scheduled. In a statement, Emirates accused Heathrow bosses of showing "blatant disregard for consumers" by attempting to force it to "deny seats to tens of thousands of travellers".

It said Heathrow's demands were "unreasonable and unacceptable" and described the airport management as "cavalier about travellers and airline customers".

Emirates announced on Friday it will continue to fly Heathrow but has agreed not to sell additional tickets until mid-August.

In a joint statement, Emirates president Tim Clark and Heathrow chief executive John Holland-Kaye said both companies had held a “constructive meeting” on Friday in which they agreed to keep “demand and capacity in balance”.

“Emirates agreed the airline was ready and willing to work with the airport to remediate the situation over the next two weeks, to keep demand and capacity in balance and provide passengers with a smooth and reliable journey through Heathrow this summer,” the statement said.

“Emirates has capped further sales on its flights out of Heathrow until mid-August to assist Heathrow in its resource ramp-up, and is working to adjust capacity.

“In the meantime, Emirates flights from Heathrow [will] operate as scheduled and ticketed passengers may travel as booked.”

Who are the Soroptimists?

The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.

The organisation said its name is best interpreted as ‘the best for women’.

Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.

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BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

Villains
Queens of the Stone Age
Matador

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

Global institutions: BlackRock and KKR

US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.

KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.

 

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Updated: July 16, 2022, 6:15 AM