Boeing is optimistic about lining up more orders for its new 777X and expects a “broad market” globally for what it claims will be the “world's largest twin-engined aircraft” when it debuts, as air travel demand comes roaring back after the Covid-19 pandemic, the company's chief executive of commercial aeroplanes said.
Emirates signalled its vote of confidence in the long-delayed programme with an additional order of 90 of the 777X planes on the first day of the Dubai Airshow on Monday.
The Dubai airline dominates the order book for the aircraft.
“I'm very confident in the long-term success of the product itself, that's why we invested in it and even during Covid we launched a freighter version of it … we see a broad market for this, it will be the ultra-big plane of the future and that serves a unique role,” Stan Deal told The National on the sidelines of the Dubai Airshow.
“I'm not concerned about where the orders are coming from. We're quite confident about the long-term success at Emirates and our other launch customers,” Mr Deal said.
“I am very hopeful for orders, but at the same time, you accrue some orders before you launch a new plane and ultimately when it’s out in the market performing, you see more orders follow through.”
Boeing won orders for 125 wide-body aircraft worth about $63 billion from Emirates and its sister airline flydubai on the opening day of the Dubai Airshow on Monday.
The jet orders from Middle Eastern airlines at Dubai's biennial air expo sent Boeing shares up 4 per cent at market close on Monday.
Demand for the aviation industry's largest planes that have dominated the fleet of the region's biggest carriers is recovering after a long cyclical downturn followed by the damaging effect of the pandemic on long-haul travel.
Boeing forecasts that wide-body aeroplanes will comprise 45 per cent of deliveries to Middle East airlines over the next 20 years, the highest percentage of the 10 global regions it features in its annual Commercial Market Outlook.
Boeing projects delivery of 3,025 new commercial aeroplanes in the Middle East by 2042, including 1,350 wide-bodies.
The 777X is still slated for delivery in 2025, Mr Deal said, without specifying when during the year. It was originally expected to debut in 2020.
Emirates has previously criticised the US aircraft manufacturer for the delays to its 777X programme, which the airline warned would hamper its complex fleet plans.
“There’s no doubt there was some disappointment with not getting the product to market as we promised and in the course of working through that, we were able to give Emirates the status very frequently of how we're progressing,” Mr Deal said.
Emirates' new order comes amid a broad recovery in travel demand globally, he said.
“No doubt the world has recovered and it recovered much faster and in Emirates' view they needed to be in a position to secure their growth so it's a combination of trust and market recovery,” Mr Deal said.
The certification process for the aircraft with the US Federal Aviation Administration is “running well, there's good harmonisation with our regulators as we move forward, we're delivering the deliverables”, he said.
Israel-Gaza war impact
The Israel-Gaza war has not yet dented confidence in travel demand or the appetite for new jets, the Boeing executive said.
“We haven't seen any residual effects yet in terms of discussions directly with customers,” Mr Deal said.
“We're hopeful that the conflict is short-lived and the peace process moves ahead, but the short answer is that there is no signs of a slowdown.”
Boeing secured a deal in March for 787 Dreamliners with Saudi Arabian start-up Riyadh Air, which has also finalised a soon-to-be-announced order for narrow-body jets.
“We are absolutely putting our best forward to both Riyadh Air and Saudia on the narrow-body campaign, which is active,” Mr Deal said.
Boeing is confident about market growth in the Middle East, particularly for wide-body aircraft, as its carriers connect East and West via their regional hubs, he added.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The specs
Engine: 2.2-litre, turbodiesel
Transmission: 6-speed auto
Power: 160hp
Torque: 385Nm
Price: Dh116,900
On sale: now
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
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.”
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
MWTC info
Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
T20 World Cup Qualifier
Final: Netherlands beat PNG by seven wickets
Qualified teams
1. Netherlands
2. PNG
3. Ireland
4. Namibia
5. Scotland
6. Oman
T20 World Cup 2020, Australia
Group A: Sri Lanka, PNG, Ireland, Oman
Group B: Bangladesh, Netherlands, Namibia, Scotland
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Scores in brief:
- New Medical Centre 129-5 in 17 overs bt Zayed Cricket Academy 125-6 in 20 overs.
- William Hare Abu Dhabi Gymkhana 188-8 in 20 overs bt One Stop Tourism 184-8 in 20 overs
- Alubond Tigers 138-7 in 20 overs bt United Bank Limited 132-7 in 20 overs
- Multiplex 142-6 in 17 overs bt Xconcepts Automobili 140 all out in 20 overs
