TUC and Heathrow call on Sunak for 'survival support' for UK aviation
March 8, 2021, 12:26 pm

TUC and Heathrow call on Sunak for 'survival support' for UK aviation

Passenger numbers at Heathrow fell almost 98% last April during the first lockdown.

Move follows accusations chancellor is failing to understand sector’s role and provide promised help

The Trades Union Congress and Heathrow have called on the government to cover UK airports’ operating costs while travel bans are in place, and to extend the furlough scheme for as long as public health measures affect aviation, in a joint call for “survival support”.

They said the demand for financial help and other measures were a matter of survival for businesses in the sector, after a budget in which Heathrow accused the chancellor of ignoring aviation and failing to understand the sector’s role.

Aviation unions and the international ground-handling operator Swissport joined the TUC and Britain’s biggest airport in issuing the call to government. Thousands of aviation jobs have been lost in the UK since the start of the Covid-19 pandemic.

Frances O’Grady, the TUC general secretary, said: “We can’t have a full UK recovery if we don’t have a full aviation recovery. But too many jobs in the industry have been lost already.

“We lack a clear and realistic plan from government to protect aviation workers and businesses until they can safely operate at full capacity again. We hope the government will agree to get a group set up so that we can plan a full recovery and strong future for aviation together.”

Almost a year has elapsed since Rishi Sunak promised sector-specific support for aviation. Airlines have taken Covid loans backed by the Bank of England and businesses have benefited through furlough, but additional support has been limited to waiving airports’ business rates up to an £8m cap – 7% of Heathrow’s annual rates bill.

John Holland-Kaye, the airport’s chief executive, said: “Aviation has been an engine for creating high-quality skilled jobs and will serve as an important catalyst for economic prosperity post-Covid.

“However, the continued lack of targeted support threatens both the viability of thousands of jobs and this government’s own vision of a global Britain.

“Our sector has been effectively shut down for almost a year with minimal support. Ministerial action is long overdue, and our leaders must act now to protect livelihoods.”

Passenger numbers at Heathrow fell almost 98% last April during the first lockdown, and about 1,700, or almost 30%, of its directly employed staff have been made redundant. Of the 75,000 workers in total at Heathrow before the pandemic, up to a third have now lost their jobs, the airport has estimated.

Monday’s joint statement came after a TUC roundtable meeting with industry representatives on Friday.

It is understood that not all of the sector backed the TUC’s call for a union seat at the table in a recovery plan. Heathrow joined the demand for a tripartite body of government, unions and industry, having faced criticism for “fire and rehire” contracts reducing pay for frontline staff during the pandemic. A series of strikes by Heathrow’s Unite union members ended last month.The government has meanwhile revived its moribund global travel taskforce, which was first formed last year by the transport secretary, Grant Shapps, to help the industry restart. Holland-Kaye said he welcomed the development and Heathrow would work closely with the taskforce, although Ryanair’s chief executive, Michael O’Leary, told MPs last week that the airline was not involved and did not think it “likely to achieve much”.

Labour said government failure was costing jobs. Jim McMahon, the shadow transport secretary, said: “It’s almost a year since ministers promised a sector-specific support package for the aviation industry, but it’s yet to materialise.”

According to a government spokesperson, £7bn of support had been pledged for the sector since the start of the pandemic, and aviation businesses could benefit from the “super-deduction” tax break for investment announced by Sunak last week. The spokesperson said: “We are continuing to explore how best to support all sectors across the economy, including the travel industry.”

Karen Dee, the chief executive of the Airport Operators Association, said the extension of furlough and rates relief were welcome but not nearly enough. “Aviation will have a long road to recovery. If there is an abrupt end to government support for aviation in a few months’ time, this will lead to difficult decisions for airports, including on employment levels,” she said.

source: Gwyn Topham

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.