Tony Douglas, group chief executive of Etihad Aviation Group, said the airline’s bookings for the winter season are improving after Abu Dhabi eased travel restrictions for vaccinated people. Photo: Victor Besa / The National
Tony Douglas, group chief executive of Etihad Aviation Group, said the airline’s bookings for the winter season are improving after Abu Dhabi eased travel restrictions for vaccinated people. Photo: Victor Besa / The National
Tony Douglas, group chief executive of Etihad Aviation Group, said the airline’s bookings for the winter season are improving after Abu Dhabi eased travel restrictions for vaccinated people. Photo: Victor Besa / The National
Tony Douglas, group chief executive of Etihad Aviation Group, said the airline’s bookings for the winter season are improving after Abu Dhabi eased travel restrictions for vaccinated people. Photo: Vi

Iata AGM: Etihad’s first A350 to join its sustainability test-bed programme, CEO says


Deena Kamel
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Etihad Airways will reveal its new Airbus A350 wide-body aircraft at Dubai Airshow next month and introduce the fuel-efficient jet to its sustainability test-bed programme, its chief executive said.

The airline will add the Airbus A350, jet-powered by Rolls-Royce XWB engines, to its sustainability programme, which currently uses its fleet of Boeing 787 Dreamliners, to focus on finding sustainable flight solutions, Tony Douglas, group chief executive of Etihad Aviation Group, told The National.

“We’re going to introduce it to our broader sustainability programme, so it won’t just be the Greenliner, it will be the Greenliner and the A350-1000 because we’ve got the world’s two most efficient aircraft,” he said. “This is going to be part of a far bigger commitment, to say that Abu Dhabi is a thought leader that actually speaks through its actions as opposed to talking a good talk or having no substance behind it.”

Since 2019, when the Greenliner programme began, Etihad and Boeing have operated several flights aboard the Boeing 787 Dreamliner jet focusing on plastic-free in-flight products, optimised airspace management, flight deck tools for more eco-friendly take-offs, noise reduction and the use of sustainable aviation fuel.

The airline took delivery of its first A350 three months ago and the engineering team is in the process of fitting out the cabin interior, Mr Douglas said.

The first A350 is scheduled to enter into service next year, but the exact date will depend on market conditions, he said.

“It’s to be determined because of Covid, that’s driven by network and demand,” he said. “It will be during 2022 ... it’s dependent on the market recovery and how many aircraft we put back in the sky.”

Mr Douglas was speaking at the International Air Transport Association’s annual general meeting in Boston on Tuesday, a day after the industry body committed to net-zero carbon emissions by 2050 to align the aviation sector’s climate change action to the 2015 Paris Agreement.

Etihad's modified Boeing 787 'Greenliner'. Courtesy: Etihad
Etihad's modified Boeing 787 'Greenliner'. Courtesy: Etihad

Almost two years before the Iata pledge, Etihad Airways had already committed to a target of zero net carbon emissions by 2050 and halving of its 2019 net emission levels by 2035.

“We have been quietly getting on with this,” Mr Douglas said.

The aviation industry executive called on global policymakers to encourage the aviation industry to undertake more sustainable solutions, such as controlled ascent and descent of aircraft, which saves flight time and tonnes of carbon emissions.

“The top of the list I’d be calling for is for policy setters, regulators and governments on a global level to put more effort into incentivising sustainable performance within aviation,” he said.

Etihad said it holds the world record on the longest flight operating on 50 per cent sustainable aviation fuel, on a journey from Charleston to Abu Dhabi. It operates the biggest fleet of the fuel-efficient 787 Dreamliners and is taking delivery of the first of its five A350s.

“We have got such a head start on everybody else, we’re way ahead in terms of the sustainability challenge of reducing carbon emissions by 2035 and more importantly zero [emissions] by 2050,” he said. “We already committed to that two years ago ... and, more importantly, we’ve got a fleet that supports that.”

The issue facing the aviation industry is that production of sustainable aviation fuels needs to be scaled up to higher levels that meet airlines’ demand and at more affordable prices, he said, echoing concerns raised by airline leaders during the three-day Iata meeting. These biofuels are three to four times more expensive than jet fuel.

Looking ahead, Mr Douglas said travel bookings for the winter season are looking “a lot better” after Abu Dhabi removed quarantine requirements for all vaccinated travellers from September 5.

“Our forward booking curve shot up the moment that was announced,” he said.

Etihad this week recorded its highest load factor – a measure of how well the airline fills available seats – in the past 18 months. Its load factor reached 50 per cent this week, up from 25 per cent six months ago, Mr Douglas said.

“It’s a big step in the right direction, but with an awful long way to go,” he said. “We’re quite confident, based on markets now becoming more accessible, that the winter booking curve is moving with real momentum.”

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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.”

SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.

Updated: October 07, 2021, 2:35 PM