The International Air Transport Association (Iata) is working to set up a testing system that will replace compulsory quarantine to help revive the airline industry that’s been decimated by the coronavirus outbreak.
The trade body, which represents about 290 airlines globally, is working with the International Civil Aviation Organisation and the World Health Organisation to put in place scalable, affordable and fast testing systems, said Conrad Clifford, Iata’s regional vice president for Asia Pacific.
“We need testing because we need to get rid of quarantines,” Mr Clifford said on Monday. “What we’ve seen so far is if there’s a 14-day quarantine, it’s the same as closing your borders.”
Mr Clifford said Iata would “prefer to see some testing before departure and ideally, if we can find countries with similar levels of Covid risk, much like Singapore and Hong Kong, then that takes away the need for further testing.”
Singapore and Hong Kong agreed last week to open their borders to one another for the first time in almost seven months, exempting people in both cities from compulsory quarantine to help reinstate links between Asia’s two premier financial hubs. Details on the arrangement, which is expected to start within weeks, haven’t yet been publicly laid out.
Tests should ideally cost less than $10, Mr Clifford said.
The risk of passengers getting infected is “very low” as airlines are carrying out deeper sanitising of planes, and cut back on in-flight catering and magazines, Mr Clifford said. Based on about 44 potential cases of infection on board recorded this year, the chances of passengers getting the virus is about one in 27 million, he said.
The chance of being infected on board is lower than that of being struck by a lightning, Mr Clifford added. “There have been a lot measures airlines have taken to absolutely drive that chance down to as close to zero as we can get it. So it’s a very safe environment indeed.”
While Iata forecast in June that airlines will lose a combined $84 billion this year because of the virus, that number is set to be larger because the market hasn’t opened as the industry had hoped, Mr Clifford said. The group has said that it expects travel demand won’t recover to the pre-Covid levels until 2024.
Last month, Iata cut its forecast for this year's traffic growth to an average decline of 66 per cent year-on-year, from a previous estimate of 63 per cent due to coronavirus-related travel restrictions.
Cargo has been “a little bit of a silver lining” for the industry – partly fuelled by online purchasing – and that is set to continue for the coming years, Mr Clifford said. Airfreight is expected to account for about 26 per cent of carriers’ revenue this year, compared with 12 per cent in 2019, he said.
Cargo rates jumped after thousands of passenger planes, which carry more than half of airfreight, were grounded due to the travel restrictions. That prompted airlines to convert passenger planes to haul goods.
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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
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Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
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Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
