Border staff crisis could force Heathrow passengers to land in Frankfurt


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The boss of Heathrow Airport told UK government ministers unless they "get a grip" on delays at the border, planes will be diverted to foreign countries.

John Holland-Kaye said on Thursday he was not confident international travel would resume on May 17, as outlined in Britain's road map out of lockdown, if Border Force staff could not handle the small volume of arrivals at present.

He said on some days there were just two officers checking the documents of passengers, leading to six-hour queues for travellers on arrival.

Consumer advocate Which? said on Thursday the beleaguered Covid-19 testing scheme for quarantining passengers could buckle under the pressure of demand when widespread travel resumes.

Additionally, there is concern that the UK’s National Health Service app will not be updated in time for May 17 after it was identified as the platform that will carry the Covid-19 passport for passengers who have been vaccinated or tested negative for the virus.

Mr Holland-Kaye said a single A380 jet with 500 passengers on board created a one-kilometre queue at the border.

He said planes could be diverted to EU airports, such as Charles de Gaulle Airport in Paris and Frankfurt Airport in Germany, if the situation persisted.

“That is a disaster for anyone travelling and should be an embarrassment for the UK government if this is how we manage our border,” he told Sky News.

“Heathrow and other airports have turned away flights in recent weeks because of congestion in immigration and if they can’t cope at these tiny volumes, how are they going to cope after May 17?”

Heathrow Airport delays 'could hold back economic recovery'

Mr Holland-Kaye said the Home Office – which controls passenger arrivals – had failed to address the problem. He urged officials to fix the issue so it does not become a “stranglehold on the UK economic recovery”.

“They need to stand up and get a grip on this and make sure we give a really warm welcome to all the passengers coming into the UK in a few weeks’ time,” he said.

“We have not seen quite enough action to ensure we are confident that Border Force can cope on May 17.”

Heathrow Airport has been plagued with delays after new Covid-19 documentation required further checks at the border. Getty Images
Heathrow Airport has been plagued with delays after new Covid-19 documentation required further checks at the border. Getty Images

Meanwhile, the Home Office told passengers arriving in the UK to expect lengthy queues.

“We are in a global health pandemic, and people should not be travelling unless absolutely necessary,” it said.

"Queues and wait times will be longer if passengers have not completed the necessary requirements to enter the UK. Airlines are responsible for making sure that their passengers have completed all the necessary requirements, and airports have a crucial responsibility for ensuring travellers can social distance at passport control.”

Transport Secretary Grant Shapps told the House of Commons that the e-passenger gates were being converted to recognise Covid-19 documentation but said the new system would not be ready until later in the year.

In terms of vaccine certification, we are working on an NHS application

Heathrow Airport on Thursday announced a first quarter loss of £329 million ($458m), taking losses since the start of the pandemic to nearly £2.4 billion.

It said only 1.7 million passengers travelled through the London airport in the three months to March 31, down 91 per cent compared with the first quarter of 2019.

Heathrow, which recently lost its status as Europe's busiest airport to Charles de Gaulle, said uncertainty over government policy meant its passenger forecast for the year was 13 million to 36 million, compared with 81 million in 2019.

The Times reported on Thursday that the NHS app would be ready "later in the summer" – missing the May 17 deadline.

It is understood ministers and app developers have yet to agree on its functions, although Mr Shapps on Thursday said the app was being transformed for Covid certification.

“In terms of vaccine certification, we are working on an NHS application; it will be the NHS app that is used for people when they book appointments ... to be able to show you’ve had a vaccine or you’ve had testing. I’m working internationally with partners to make sure that system can be internationally recognised, as that’s the way forward,” he said.

More on Heathrow Airport

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Company name: Suraasa

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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MWTC info

Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.