American Airlines planes sit on the tarmac at LaGuardia Airport in New York. Seth Wenig / AP Photo
American Airlines planes sit on the tarmac at LaGuardia Airport in New York. Seth Wenig / AP Photo
American Airlines planes sit on the tarmac at LaGuardia Airport in New York. Seth Wenig / AP Photo
American Airlines planes sit on the tarmac at LaGuardia Airport in New York. Seth Wenig / AP Photo

Airline group wins case over shrinking airline seats


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If you think the government should do something about the cramped legroom on airplanes, you've got a friend in a federal court.
The US Court of Appeals in Washington, at the weekend ordered aviation regulators to consider setting minimum standards for the space airlines give passengers.
"This is the case of the incredible shrinking airline seat," judge Patricia Ann Millett wrote on behalf of the three-judge panel. "As many have no doubt noticed, aircraft seats and the spacing between them have been getting smaller and smaller, while American passengers have been growing in size."
The court found in favour of Flyers Rights, a nonprofit advocacy group, which had argued that steadily shrinking legroom and seat size created a safety hazard and the Federal Aviation Administration (FAA) should impose new restrictions.

The issue of airline passenger legroom has boiled over this year as some carriers said they plan to add more seats to planes. American Airlines in May announced it would shrink the space between most rows to 76 centimetres on its newest Boeing 737 Max jetliners, while later dropping a move to cut the distance in some rows to 29 inches in the face of criticism from employees and customers.

Flyers Rights argued that the average seat width has narrowed from approximately 18.5 inches in the early-2000s to 17 inches in the early-to-mid-2010s. In recent decades, the distance between seat rows, known as "seat pitch," has gone from an average of 35 inches to 31 inches, and as low as 28 inches at some airlines, the group said in the suit.
While the FAA has contended its standards for safely evacuating an aircraft are adequate, US policymakers have grilled members of the administration and airline executives on the issue at several hearings this year, and some have drafted legislation to address the issue.
The court said the FAA had used "off-point" studies and "undisclosed tests using unknown parameters" to justify its initial refusal to review the rules. "That type of vaporous record will not do," the court said.
The combination of less legroom and larger passengers has created a safety hazard, Flyers Rights argued, making it more difficult to exit a plane in an emergency and heightening the risk of deep vein thrombosis, a potentially fatal condition of blood clots in the legs that has been associated with longer flights.
"We're really gratified," said Paul Hudson, the president of Flyers Rights. "We hope the FAA will now take it up as a proper rule making."
Airlines for America, a trade group for the large US carriers, said it was not involved in the suit and referred to FAA for comment.
The FAA said the agency "does consider seat pitch in testing and assessing the safe evacuation of commercial, passenger aircraft. We are studying the ruling carefully and any potential actions we may take to address the court's findings".
The long-term impact of the court rules remains unclear. It stopped short of ordering FAA to create new rules, so the agency could conduct a review and decide not to act.
Last May, the agency said it had already conducted evacuation tests on the smaller seat configurations to ensure they are safe. The agency has no rules on seat width or the distance between rows, relying instead on the evacuation standards.
After American's initial announcement it was shortening the distance between seats, the agency said Boeing in 1998 successfully performed evacuation tests on the 737-400 with seats spaced 28 and 29 inches apart. As a result, the agency had certified up to 189 passengers aboard the 737 Max that American is buying.
Even as emergency evacuations have got significantly safer in recent decades, a debate continues to rage on how US and other leading aviation regulators around the world certify the maximum number of passengers allowed on an airliner.
In part because full-scale evacuation tests have resulted in serious injuries, the FAA and other agencies have in some cases allowed manufacturers to substitute computer simulation and more limited tests.
US regulations require that Boeing, Airbus and other manufacturers prove that a fully loaded plane can be evacuated within 90 seconds with half the exits blocked and in low lighting conditions.
Hudson, who has served on various FAA advisory panels in recent decades, has argued that the FAA's requirements are not adequate to protect safety.
Hudson's group initially filed a petition to FAA on August 26, 2015, asking the agency to create rules on seat size and spacing. The agency turned it down on February 1, 2016.
In its response to the suit, the FAA cited earlier evacuation studies on seat rows placed as close as 28 inches apart to argue existing rules were adequate to protect safety. However, the agency declined to release those studies to Flyers Rights or to the court, arguing they contained proprietary information from manufacturers.
"The problem here is that the administration has given no reasoned explanation for withholding the tests in their entirety, and it has declined to file them under seal or in redacted form," judge Millet said in the ruling. 
If it decides to deny Flyers Rights's petition again, "the administration must provide appropriate record support for its decision", she said.

* Bloomberg

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.

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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.”

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5