Etihad Airways is adequately staffed to meet the surge in travel demand during the peak summer season, despite a global shortage in aviation workers that has led to chaos at airports and capacity cuts at airlines.
The Abu Dhabi-based airline began its campaign to recruit 1,000 staff by year's end, mostly cabin crew and pilots, back in October 2021 when it predicted the demand rebound, and it has tapped into the pool of its former pilots, Capt Jihad Matta, head of crew recruitment, performance and support at Etihad Airways, told The National.
“Based on the current plan that we have, we are meeting the targets. We haven't had to amend our schedule due to lack of manpower,” he told The National, pointing to some airlines that were forced to cancel hundreds of flights.
“The good thing is we started a little bit earlier, it gave us a little bit of a buffer to be able not just to fly scheduled flights, but even to do charters.”
The hiring process is made more difficult by a global crunch in aviation workers but the airline has been able to source new recruits to operate flights at a pace that matches the rise in demand, he said before a tour of the airline's crew training facilities.
Related: How Etihad Airways recruits and trains cabin crew amid a hiring spree
“It's not been easy, it's been challenging, but because of what we've built over the years in terms of [work] culture and the current package, we still have the opportunity to attract people,” he said.
“As we've got the recruitment wheels rolling, we are ready … if they [management] tell us tomorrow we need 100 more pilots, we can do it. We continuously modify our plans and we have different scenarios for the summer.”
The airline also stands ready for the winter schedule, should there be an increase in flights, with plans to tap into the wider market if it exhausts the pool of its former pilots, he added.
Increase in airline jobs in 2022
The global aviation industry is facing a shortage of employees as many who were laid off during the Covid-19 pandemic have moved into other occupations and flexible work options.
Direct employment at airlines is expected to reach 2.7 million people this year, up 4.3 per cent from 2021, as the industry rebuilds from the significant decline in activity in 2020, the International Air Transport Association (Iata) reported.
The time required to recruit, train, complete security checks and perform other necessary processes before staff are “job-ready” is becoming a challenge for the industry. In some cases, employment delays are hurting airlines' ability to keep up with passenger demand.
A resurgence in demand as pandemic restrictions ease worldwide means passenger numbers are forecast to reach 83 per cent of pre-Covid levels in 2022, Iata said.
Etihad Airways expects to carry 2.7 million passengers between June and August amid a rise in bookings over recent weeks for the summer holidays, it said in a statement this week.
In this scenario, the competition between global airlines is heating up for a limited supply of workers as they race to staff their aircraft.
“We're all after the same people because all the airlines are now hiring and the hospitality industry is hiring as well, so we're all looking for that same kind of person: someone who can speak well, who is presentable, mature,” Capt Matta said.
“Sometimes you go to a place and your success rate is pretty good, and some days it's not because … another airline has shown up a week before and taken some of the people you wanted to hire.”
Etihad will hold crew recruitment drives in countries including Lebanon, Jordan, Thailand, Germany, UK and Italy in the coming weeks. An open day it held in Dubai earlier this month attracted more than 5,000 candidates.
“The response has been amazing,” Capt Matta said.
“We would not go to any country unless we had at least 100 applicants meeting our criteria. Then it's economically viable for us to send a recruitment team.”
Rising labour costs
Labour costs, the second-highest operational cost item for airlines, are back to pre-pandemic levels.
Unit labour costs are expected to be 12.2 cents per available tonne kilometre (ATK) in 2022, which is nearly at 2019 levels of 12.3 cents per ATK, Iata said.
In countries where economic recovery from the pandemic has been fast and the unemployment rate is low, tight labour markets and skill shortages will push up wages, it said.
The industry’s wage bill is expected to reach $173 billion in 2022, up 7.9 per cent on 2021, and disproportionate to the 4.3 per cent increase in total jobs.
“At the moment, we still have a competitive enough salary scale and benefits to attract people but that doesn't mean the company won't keep looking at it on a continuous basis,” Capt Matta said.
“Labour costs have gone up because we've had to hire a lot more people, more than we expected, so definitely the total cost has gone up, but individual salaries continue to be monitored and we will look at what needs to be done.”
Has the industry retained its charm?
Etihad has rehired some 200 Airbus-trained pilots and 200 Boeing-trained pilots that formerly worked for the airline but were furloughed or laid off during the pandemic.
Flavia Lucilio, who first joined the airline in 2016 as an A320 first officer before leaving in 2020 due to the crisis, was rehired and started work on June 27.
“It's a pleasure and an extremely happy day for me as [someone passionate about an aviation] to see the world going back to normal, especially returning to Etihad because it's not only returning to fly but also returning to the company I choose,” she said in an interview.
She will resume operating A320-family jets bound for India, Europe and Africa.
“Nobody thought the aviation industry would recover that quickly, I feel it's a privilege somehow that I'm here and I'm back in less than three years, I thought it would take more time,” she said.
“The world needs to travel after so many years facing stress, uncertainty, lockdowns and fear. Now everybody is feeling this need to relax, travel and enjoy the good things in life.”
New cabin crew recruit Sushmitha Kotian is about to graduate from Etihad's six-week training programme that covers everything from flight safety to meal service.
“Everyday is a surprise, you know? It's been full of excitement,” she said.
Ms Kotian moved from a job in customer service to the flight attendant role to pursue her dream to join the aviation industry, a step that was delayed for three years by the pandemic.
“I used that time to study and took some aviation courses,” she said. “I was just waiting for the open day.”
Her first operating flight will be to Paris, her dream destination, she said.
“I want to see the Eiffel tower,” she said, laughing.
She sees herself working in the industry for the long-haul.
“I've waited for this since a long time, so now that I got it, I'm not going to give up on this, I see my future in aviation.”
Demand for aviation workers in the UAE is on the rise following a boost from Expo 2020 Dubai and the recovery of the travel industry quickening as international borders reopen, said Antony Marke, chief operating officer of people solutions at Dubai-based recruitment company Dulsco.
“We are seeing more and more recruitment requests, from the usual markets like India, Nepal and Pakistan, but also in Egypt, Africa — especially Malawi,” he said.
Airports and airlines are currently offering competitive salaries, benefits and career opportunities to attract a new wave of talent to fill the staff shortage, he added.
Dulsco is receiving applications from candidates for positions from ground staff, baggage handlers to cabin crew and customer services.
“Interestingly, the vast majority of applicants have previously been employed in sectors such as transport and logistics and wish to transfer their highly valuable skills to develop a career within the aviation industry,” Mr Marke said.
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Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
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Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
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Stars: Brad Pitt, Tommy Lee Jones
Five out of five stars
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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6.30pm: Maiden Dh165,000 (Dirt) 1,400m. Winner: Rio Angie, Pat Dobbs (jockey), Doug Watson (trainer).
7.05pm: Handicap Dh170,000 (D) 1,600m. Winner: Trenchard, Pat Dobbs, Doug Watson.
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8.50pm: Handicap Dh210,000 (D) 2,000m. Winner: Tried And True, Pat Dobbs, Doug Watson.
9.25pm:Handicap Dh185,000 (D) 1,400m. Winner: Midnight Sands, Pat Dobbs, Doug Watson.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
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KILLING OF QASSEM SULEIMANI
A State of Passion
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Stars: Dr Ghassan Abu-Sittah
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Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
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Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.”
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