Flights to resume after UK air-traffic control hit by 'network-wide failure'


Tariq Tahir
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Grounded planes were on Monday afternoon set to take to the air again, after air-traffic control in the UK was hit by a technical fault.

One airline had reported a “network-wide failure”, while the National Air Traffic Service said it had “applied traffic flow restrictions to maintain safety” while its engineers worked to fix the issue.

Nats explained the technical issue meant flight plans had to be entered manually, slowing down the flow of air traffic considerably.

It announced the problem had been resolved by midafternoon but Transport Secretary Mark Harper said on Monday evening that flights were still being affected.

More than 500 flights had been cancelled as of 2.30pm UK time, the BBC reported, citing data from aviation analytics firm Cirium.

“We have identified and remedied the technical issue affecting our flight-planning system this morning,” said Nats. “We are now working closely with airlines and airports to manage the flights affected as efficiently as possible.

“Our engineers will be carefully monitoring the system’s performance as we return to normal operations.”

Juliet Kennedy, the operations director at Nats, later tweeted an apology and said the failure would be thoroughly investigated.

“First of all, I’d like to apologise for the impact on people’s travel plans today," Ms Kennedy said.

“The issue we had earlier meant that our automatic system, which provides controllers with details of every aircraft and its route, wasn’t working.

"Instead, to manage safety, we had to limit the number of flights we could manage.

“Our teams worked hard to resolve the problem, and I’m pleased to say it was fixed earlier on this afternoon. However, it will take some time for flights to return to normal.

“And we will continue to work with the airlines and the airports to recover the situation. Our absolute priority is safety and we will be investigating very thoroughly what happened today.

“Again, I would like to apologise for the impact on the travelling public and to tell you that our teams will continue to work to get you on your way as soon as we can.”

Knock-on effects could last days

Travel expert Simon Calder said while there was no immediate danger because the air-traffic control system is designed to cope with such situations, there would be a knock-on effect throughout Europe that could last for hours or even days in what is one of the busiest times of the year.

“There is going to be absolute disruption and chaos spreading across Europe,” he told Sky News.

“If you are on the ground at Heathrow or Gatwick, which are the busiest two-runway and busiest single-runway airports in the world, there is very, very little slack in the system.

“Meanwhile, there are thousands of aircraft in the skies above Europe, hundreds of them heading to the UK. Some of them are getting down, if they are in the vicinity of the airfield, then they will be landing.

“But otherwise you are going to start seeing aircraft either being held on the ground in airports such as Amsterdam – or indeed being diverted if they’re on a longer flight, and that would typically be a continental airport.”

He said that even though the fault was fixed relatively quickly, “it will have caused enough disruption for the system to be in disarray for certainly the rest of the day and possibly for further days”.

Earlier, Irish air-traffic control provider AirNav Ireland said the issue, which struck during a public holiday in parts of Britain, was resulting in “significant delays for flights across Europe that are travelling to, from or through UK airspace”.

A representative for London Heathrow, the busiest airport in Western Europe, said it was working with Nats and other partners to minimise the impact on passengers, while Gatwick, south of London, said reported numerous delays and cancellations.

The departures board at London's Heathrow Airport on Monday. Reuters
The departures board at London's Heathrow Airport on Monday. Reuters

Emirates airline said on Monday: “All flights currently en route to the United Kingdom will be allowed to land, but flights departing the UK may experience delays.”

The airline added that it was continuing to “monitor the situation apologises to its customers for the inconvenience”.

Etihad Airways said it was “advising passengers travelling to and from London and Manchester that there may be flight delays due to the ongoing Flight Data Processing System failure affecting all airlines operating in the UK”.

“All flights are currently planned to operate as scheduled, however, we are working closely with airport authorities and will inform guests immediately if there is any change,” said the airline.

“We apologise for the inconvenience caused by this system failure which is affecting all airports across the UK.”

Scottish airline Loganair was the first to reveal there were difficulties, saying there had been “a network-wide failure of UK air-traffic control computer systems”, with flights grounded.

“Although we are hopeful of being able to operate most intra-Scotland flights on the basis of local co-ordination and with a minimum of disruption, north-south and international flights may be subject to delays,” it said late on Monday morning.

Broadcaster Gabby Logan said on X, formerly known as Twitter, that she was on a plane on a runway at Budapest International Airport, and had “just been told UK airspace is shut”, adding “we could be here for 12 hours”.

Loganair reported a 'network-wide failure'. Photo: Loganair
Loganair reported a 'network-wide failure'. Photo: Loganair

EasyJet passengers had been told the issue was affecting all flights in and out of Britain.

“We have been advised of an air-traffic control issue currently affecting all flights due to fly into or out of United Kingdom airspace,” the airline said before the problem had been resolved.

British Airways said it was “working closely with Nats to understand the impact of a technical issue that is affecting UK airspace and will keep our customers up to date with the latest information”.

Tui warned of “significant delays”, while Ryanair passengers said they had been told to wait at their gate until further notice.

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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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Updated: August 28, 2023, 9:14 PM