Boeing restarted handovers of the 787 Dreamliner wide-body aircraft to customers globally in August 2022. Jeff Topping / The National
Boeing restarted handovers of the 787 Dreamliner wide-body aircraft to customers globally in August 2022. Jeff Topping / The National
Boeing restarted handovers of the 787 Dreamliner wide-body aircraft to customers globally in August 2022. Jeff Topping / The National
Boeing restarted handovers of the 787 Dreamliner wide-body aircraft to customers globally in August 2022. Jeff Topping / The National

Boeing will 'soon resume 787 deliveries' to Middle East and African airlines


Deena Kamel
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Boeing will soon resume deliveries of its 787 Dreamliner wide-body aircraft to airlines in the Middle East and Africa, following a pause of more than a year owing to manufacturing flaws, according to a senior Boeing executive in the region.

The US plane manufacturer restarted handovers to customers globally in August.

Boeing is scheduled to deliver a total of four or five 787 wide-bodies this year to Middle Eastern airlines, Omar Arekat, the company's vice president of commercial sales and marketing in the Middle East and Africa, told The National in an interview.

The resumption of deliveries “is a very important milestone; we've been co-ordinating with regulators to make sure it's back on track, safety is the most important element for us looking forward and we want to make sure it is safe”, Mr Arekat said.

“We're glad this is behind us now and we're back to delivering 787s … We have a number of customers that we are looking forward to delivering the 787s that have been delayed,” he said.

Qatar Airways will get deliveries of 787-9 aircraft this year, becoming the first airline in the region to receive shipments of the Dreamliner following the lifting of delivery suspensions, Mr Arekat said.

In 2023, a number of airline customers in the Middle East and Africa will take delivery of their 787 wide-bodies, including Ethiopian Airlines and Egyptair.

Abu Dhabi's Etihad Airways will also receive deliveries of 787-9s and the larger 787-10 variant next year.

Bahrain's Gulf Air, which operates a total of seven 787-9s, will be taking delivery of three more jets over a period starting next year.

“We are pursuing a couple of new opportunities in the region for the 787 and when it's the right time we can be at liberty to discuss it,” Mr Arekat said.

Boeing had resumed 787 deliveries in August this year, following a nearly two-year halt by the US Federal Aviation Administration (FAA), since May 2021, owing to technical snags.

Deliveries restarted after “thorough engineering analysis, verification and rework activities to ensure all airplanes conform to Boeing’s exacting specifications and regulatory requirements”, the Arlington, Virginia-based plane maker said at the time.

The resumption of shipments will mark a financial turnaround for Boeing after years of operational lapses that have frustrated customers, suppliers and investors.

Boeing 777X programme progress

Asked about progress on the long-delayed 777X passenger jet with entry into service slipping to 2025, Mr Arekat said Boeing is working with aviation regulators and airlines to make sure it has the “best product available” within the time frame.

The jet was originally scheduled to enter service in 2020.

“We continue to work with global regulators on the certification of the 777-9, we firmly believe that we have a path towards getting the certification and we believe we can achieve entry into service for the 777-9 by mid-2025,” he said.

“Right now from where we are sitting, we don't anticipate any delays based on the current schedule we are targeting.”

Dubai-based Emirates Airline has repeatedly criticised the plane maker over delivery delays.

Emirates’ chief operating officer Adel Al Redha told The National last week said that a failure by Boeing to deliver 777X jets by mid-2025 would no longer be justifiable as the company has had plenty of time to work on tests and certification.

Omar Arekat, Boeing's vice president of commercial sales and marketing in the Middle East and Africa. Photo: Boeing
Omar Arekat, Boeing's vice president of commercial sales and marketing in the Middle East and Africa. Photo: Boeing

737 Max opportunities

Asked if there were any regional takers for the 737 Max jets that Boeing has sought to offload from mainland Chinese carriers, Mr Arekat said that the narrow-body workhorse has a backlog sold out through to 2025 to 2026.

The company is pursuing a “number of opportunities” for the 737 Max in the Middle East and Africa, he said.

“We have the right baseline and right platform to grow from,” Mr Arekat said.

“There has been a lot of interest expressed in acquiring or adding the Max to potential airlines' fleet.”

Regional customers include flydubai, Qatar Airways, Oman Air, Ethiopian Airlines and Royal Air Maroc.

Supply chain woes

With airlines around the world seeking modern, fuel-efficient aircraft to meet the surge in air travel demand following the Covid-19 pandemic, lingering supply chain issues have continued to plague the aviation industry.

This has hampered aircraft production by major manufacturers and caused jet delivery delays.

“The whole ecosystem for our industry has been impacted,” Mr Arekat said.

“The supply chain is something we are watching very carefully, we are connecting with our suppliers to make sure they have access to the right resources.”

“There is an effect we're seeing today on production,” Mr Arekat said, adding that Boeing and its suppliers are taking steps to mitigate it and that the “capacity shortage will be recovered in a timely fashion”.

“This is a considerable issue and it is the limiting factor for our industry production, we know the demand is there and the market is there, it's just that supply cannot catch up,” he said, citing the pandemic, an industry workforce shrunk by the crisis and a sudden rebound in travel demand.

Resolving this bottleneck will depend on whether or not demand continues to grow at the same pace and if the manufacturing capacity can catch up quickly, Mr Arekat said.

'Resilient' jet demand

Asked about the impact of looming recession fears, inflation and higher oil prices on airlines' demand for new aircraft, Mr Arekat said that while the industry has always been “sensitive” to economic changes, it remains “resilient”.

“The industry has shrunk in terms of supply during the pandemic and now we are talking about not being able to catch up to demand, so we're already behind in terms of providing the capacity required by the market,” he said.

“There might be an economic slowdown that would have an impact on airlines but I believe this would be short-term,” Mr Arekat said.

“But if you look in the medium- to long-term, our industry is heading in the right path.”

A major challenge ahead for the aviation industry will be finding ways to “commercialise” the production of sustainable aviation fuels (SAF) with the least disruption to infrastructure, Mr Arekat said.

As airlines seek to meet their net-zero carbon goals by 2050, the near-term solution to reduce their carbon footprint lies in increasing the use of SAF by raising production volumes and reducing its prices, according to Mr Arekat.

“We need to have collaborative efforts between the airlines, the OEMs [original equipment manufacturers], airports, government bodies, regulators and other experts to make sure we have the funding channel for [SAF] so that it is available abundantly.”

UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

Zimbabwe v UAE, ODI series

All matches at the Harare Sports Club:

1st ODI, Wednesday, April 10

2nd ODI, Friday, April 12

3rd ODI, Sunday, April 14

4th ODI, Tuesday, April 16

UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed

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Story of 2017-18 so far and schedule to come

Roll of Honour

Who has won what so far in the West Asia rugby season?

 

Western Clubs Champions League

Winners: Abu Dhabi Harlequins

Runners up: Bahrain

 

Dubai Rugby Sevens

Winners: Dubai Exiles

Runners up: Jebel Ali Dragons

 

West Asia Premiership

Winners: Jebel Ali Dragons

Runners up: Abu Dhabi Harlequins

 

UAE Premiership Cup

Winners: Abu Dhabi Harlequins

Runners up: Dubai Exiles

 

Fixtures

Friday

West Asia Cup final

5pm, Bahrain (6pm UAE time), Bahrain v Dubai Exiles

 

West Asia Trophy final

3pm, The Sevens, Dubai Hurricanes v Dubai Sports City Eagles

 

Friday, April 13

UAE Premiership final

5pm, Al Ain, Dubai Exiles v Abu Dhabi Harlequins

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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.”

Profile

Company name: Jaib

Started: January 2018

Co-founders: Fouad Jeryes and Sinan Taifour

Based: Jordan

Sector: FinTech

Total transactions: over $800,000 since January, 2018

Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups

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Indoor cricket in a nutshell

Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side

8 There are eight players per team

There have been nine Indoor Cricket World Cups for men. Australia have won every one.

5 Five runs are deducted from the score when a wickets falls

Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs

B Side nets, between the striker and halfway down the pitch: 1 run

Side nets between halfway and the bowlers end: 2 runs

Back net: 4 runs on the bounce, 6 runs on the full

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Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.

Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.

Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.

Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.

Phishing: Aims to secure personal information, such as passwords and credit card numbers.

Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.

Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.

Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.

Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.

Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.

Zero-day exploit: Exploits a vulnerability in software before a fix is found.

Updated: November 18, 2022, 4:30 AM