UK aviation sector needs urgent support, industry leaders say
January 16, 2021, 12:08 pm

UK aviation sector needs urgent support, industry leaders say

Passengers from international flights arrive at Heathrow airport in London.

Airline chiefs say airports are supporting critical services such as freight and coastguard flights

Industry leaders have said the UK’s aviation sector urgently needs more government support if it is to survive another lengthy period of travel restrictions, as they warn of a deepening financial crisis over the coming months.

From Monday, international arrivals to the UK will be required to quarantine for 10 days, in an effort to stem the spread of any new coronavirus variants amid a worsening incidence of transmission around the world.

People will also be asked to provide proof of a negative test taken in the previous 72 hours before travelling.

While accepting that the curbs will protect public health, airline chiefs have said they raised the possibility airports may have to temporarily close to save costs, describing the move as “yet another huge blow” for the beleaguered sector.

Karen Dee, the chief executive of the Airport Operators Association, urged ministers to set out industry-specific plans for how airports will survive financially while the stringent rules are in effect.

“Airports are currently keeping their infrastructure open to support vital and critical services, such as post, freight, emergency services, military and coastguard flights, as well as to help keep the lights in the UK on through supporting flights to offshore oil, gas and wind operations,” she said.

“Airports are doing so while running on empty – there is only so long they can run on fumes before having to close temporarily to preserve their business for the future. Government needs to help cover airports’ operational costs by, for example, urgently providing relief from regulatory, policing, air traffic and business rates costs in the current and the coming tax year.”Travel corridors were hailed as a lifeline for the aviation industry after being introduced in the summer to permit people to travel to and from certain countries with low Covid-19 case numbers without having to quarantine on their return.

But amid concerns about a new variant identified in Brazil, ministers have sought to calm fears by temporarily suspending them under plans that will be in place until at least 15 February.

Tim Alderslade, the chief executive of Airlines UK, which represents all UK registered airlines, expressed his hopes that by Easter the restrictions would be lifted and the industry could start to recover as public demand for holidays will likely be high.

“In terms of the volume of flights that airlines are operating, we are talking about lower than 10% based on where we would normally be,” he told the BBC Radio 4’s Today programme.

“Easter is a date that we have got in mind as to when we can start to have an aviation sector again because if we don’t start to bring in revenue to the sector, we are going to be in a really difficult place indeed because we have now had pretty much 12 months without any revenue coming in, which is just not sustainable and airlines are effectively staying in business by taking on billions of pounds of debt, which will need to be paid back.”

The government has said it is committed to supporting the travel industry, with Robert Courts, the aviation minister, insisting a “very strong” package of measures is in place to protect the public from any new coronavirus variants.

He told BBC Radio 4’s Today programme that the government was “toughening up already tough requirements” to ensure that new variants do not arrive from abroad while the vaccine is rolled out.

Courts said a total ban on travel to the UK would not be the correct approach, and that pre-departure testing, passenger locator forms and the quarantine period would make the system robust.

source: Yohannes Lowe

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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.