Airlines trade association boss Willie Walsh has railed against the unfair system that forces airlines to foot huge bills for issues that are out of their control as he estimated the cost of this week’s meltdown in air traffic control to be “close to £100 million” ($126.5 million).
The director general of the International Air Transport Association (IATA) said members faced with huge bills are left “frustrated and angry” by rules that make it almost impossible for them to claim back the money.
He said the company behind the widespread flight disruption on Monday should be made to cough up and rules should be put in place to prevent it from passing on the costs to airlines.
National Air Traffic Services (Nats), the company responsible for air traffic control in the UK, has apologised to customers affected by the chaos, including those who are still stranded abroad.
Mr Walsh, a former boss of British Airways, said it is “very unfair” that Nats “doesn’t pay a single penny” for the problem.
“You’re looking at hundreds of thousands of customers impacted by cancellations,” Mr Walsh told BBC Radio 4’s Today programme. “And that doesn’t take into account the hundreds of thousands of passengers impacted by delays on the day. So it’s considerable disruption.
“We’re looking at costs in the tens of millions.”
He said while it is too early to put a precise figure on the bill airlines would have for the disruption, he estimated it would be “close to £100 million”.
Mr Walsh said he would like to see the Civil Aviation Authority (CAA) introduce new rules that would force Nats to pay for the cost of issues, and prevent them from passing on this cost to airlines.
“At the heart of this is a failure that should not have happened and I think Nats have a lot of questions to answer,” he said.
The CAA is investigating the disruption, which resulted in more than 1,000 flights being cancelled on Monday, Tuesday and Wednesday.
The UK government has said the possibility of a cyber attack causing the issue has been ruled out.
Reports suggest a French airline’s entry of incorrect data into the air traffic control system may have caused the shutdown.
This meant data had to be entered manually, resulting in significant delays and mass cancellation of flights.
Mr Walsh said he found it staggering that a single piece of inaccurate data could have triggered a complete collapse.
“This system should be designed to reject data that’s incorrect, not to collapse the system,” he said, adding that if the reports are true it “demonstrates a considerable weakness that must have been there for some time”.
“I’m amazed if that is the cause of this,” he said.
Martin Rolfe, chief executive of Nats, said initial investigations show the failure “relates to some of the flight data we received”.
He apologised to passengers affected by the disruption.
Primary and backup systems used by the company responded by “suspending automatic processing”, he added.
UK air traffic control hit by network-wide failure – in pictures
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MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
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MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
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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
The years Ramadan fell in May
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Veil (Object Lessons)
Rafia Zakaria
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Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
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RACE SCHEDULE
All times UAE ( 4 GMT)
Friday, September 29
First practice: 7am - 8.30am
Second practice: 11am - 12.30pm
Saturday, September 30
Qualifying: 1pm - 2pm
Sunday, October 1
Race: 11am - 1pm
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
RESULT
Los Angeles Galaxy 2 Manchester United 5
Galaxy: Dos Santos (79', 88')
United: Rashford (2', 20'), Fellaini (26'), Mkhitaryan (67'), Martial (72')
Pieces of Her
Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick
Director: Minkie Spiro
Rating:2/5
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Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
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