A Boeing 777X aeroplane taking off during its inaugural flight at Paine Field in Everett, Washington. AFP
A Boeing 777X aeroplane taking off during its inaugural flight at Paine Field in Everett, Washington. AFP
A Boeing 777X aeroplane taking off during its inaugural flight at Paine Field in Everett, Washington. AFP
A Boeing 777X aeroplane taking off during its inaugural flight at Paine Field in Everett, Washington. AFP

Deliveries of Boeing 777X jets 'could be delayed until early 2025'


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Boeing is preparing for a new delay in its 777X programme that would push first deliveries by at least a year into early 2025, a source briefed on the matter told Reuters.

The delay is in line with an estimate given by the plane's biggest customer, Dubai's Emirates airline, whose president, Tim Clark, had said that he did not expect to receive a first Boeing 777X before 2025.

The source confirmed the delay, first reported on Friday by the Air Current aviation industry publication, that said Boeing expects to delay the certification target until late 2024 — or by another nine to 12 months for the wide-body aircraft — with deliveries to follow in 2025.

The source spoke on the condition of anonymity because the revised target date had not yet been publicly released.

Reuters reported last month that the Federal Aviation Administration warned Boeing in a March 21 letter that existing certification schedules for the 737 MAX 10 and 777X were "outdated and no longer reflect the programme activities".

Boeing had earlier said it expected to win certification for the 777X by the end of 2023. Certification is needed before Boeing can begin deliveries.

Asked about the delay report, Boeing said on Friday it remains "focused on working transparently with regulators and our customers".

The 777X, known as the 777-9 and a larger version of the 777 wide-body jet, has been in development since 2013 and at one point was expected to be released for airline use in June 2020.

Boeing is also working to gain approval for the 737 Max 10 by the end of the year and before a key safety deadline set by Congress.

The FAA in March asked Boeing to provide a "mature certification schedule" for the Max 10.

  • A Boeing 777X aircraft performs a demonstration flight at the 2021 Dubai Airshow. AFP
    A Boeing 777X aircraft performs a demonstration flight at the 2021 Dubai Airshow. AFP
  • Attendees stand by the ramp leading to the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
    Attendees stand by the ramp leading to the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
  • The "777" logo on the empennage (tail fin) of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
    The "777" logo on the empennage (tail fin) of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
  • The folding wingtips of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
    The folding wingtips of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
  • A man walks beneath the underbelly of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
    A man walks beneath the underbelly of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
  • The folding wingtips and the fuselage of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
    The folding wingtips and the fuselage of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
  • The folding wingtips of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
    The folding wingtips of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP
  • A Boeing 777X aircraft performs a demonstration flight at the 2021 Dubai Airshow. AFP
    A Boeing 777X aircraft performs a demonstration flight at the 2021 Dubai Airshow. AFP
  • A crowd watches a Boeing 777X fly at the Dubai Airshow. AP Photo
    A crowd watches a Boeing 777X fly at the Dubai Airshow. AP Photo

A 2020 law sets a December 2022 deadline for imposing a new safety standard for cockpit alerts. Only Congress can extend the deadline if the FAA does not certify the 737 Max 10 by then.

In May 2021, the FAA told Boeing that, realistically, it would not certify the 777X until mid-to-late 2023 and rejected a request by Boeing to clear a certification hurdle, citing numerous concerns about lack of data and the lack of a preliminary safety assessment for the FAA to review.

Boeing is also working to resume 787 Dreamliner deliveries. Reuters reported on Wednesday it advised key airlines and parts suppliers that deliveries would resume in the second half of 2022.

Boeing's swollen 787 inventory, amassed since it halted deliveries nearly a year ago over structural flaws, has locked up desperately needed cash and cut airline capacity.

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

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Stay indoors when conditions are particularly poor.

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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.”

Updated: April 23, 2022, 9:30 AM