A Boeing 737 Max 9 at Boeing Field in Seattle, Washington. The FAA suspended operations of the 737 Max on March 13 after the Ethiopian Airlines flight 302 crash. AFP
A Boeing 737 Max 9 at Boeing Field in Seattle, Washington. The FAA suspended operations of the 737 Max on March 13 after the Ethiopian Airlines flight 302 crash. AFP
A Boeing 737 Max 9 at Boeing Field in Seattle, Washington. The FAA suspended operations of the 737 Max on March 13 after the Ethiopian Airlines flight 302 crash. AFP
A Boeing 737 Max 9 at Boeing Field in Seattle, Washington. The FAA suspended operations of the 737 Max on March 13 after the Ethiopian Airlines flight 302 crash. AFP

Boeing 737 Max grounding may last until 2020


Deena Kamel
  • English
  • Arabic

Boeing's 737 Max jet may remain grounded until 2020 as the US plane maker works on fixing its problematic flight-control software.

The troubled jet is expected to return to the skies in January 2020 under the "latest scenario" although the situation remains fluid and no firm timeline has been set, The Wall Street Journal reported on Sunday, citing unidentified US Federal Aviation Administration (FAA) officials and pilot-union leaders.

Boeing still has to satisfy US regulators that it has answered all outstanding safety questions before the Max fleet can take off, the newspaper said.

Global aviation regulators grounded the 737 Max after the jet was involved in two deadly crashes in October and March that together killed 346 people. Software fixes to the MCAS - an automated system that overrode pilot commands and pushed down the noses of the Max jets that crashed - have been been completed and have been awaiting formal FAA approval for months. But in June, the FAA announced another software glitch it had detected during simulator flight testing, which requires more work by Boeing and is further delaying the Max's takeoff.

American Airlines said on Sunday it would keep the aircraft off its schedule through November 2, two months beyond a previous target of a September return, making it the fifth time the airline adjusted its flights to accommodate the Max's absence.

United Airlines this week also removed the plane from its schedule through November 2.

Tim Clark, the president of Emirates, whose sister airline flydubai is the only UAE-based customer of the jet, said in June he expected the Max was unlikely to fly before Christmas.

The FAA said it is following a thorough process with no timetable, as the agency vowed to resolve all safety issues before allowing the planes back in the air.

Even when the global grounding is lifted, US airlines have said they will require several weeks to prepare stored aircraft to return to commercial operations and potentially retrain pilots.

Carriers already coping with the lengthy Max absence from month to month since its grounding in March are facing the upcoming busy Christmas season with no end in sight for the Max ban.

The grounding of the jet has caused a rift between the FAA, which traditionally led the industry in terms of safety standards, and global aviation regulators who want to conduct their own independent safety checks on the jet.

The International Air Transport Association, the airlines lobby group, has called on global regulators to align their efforts for the safe return of the Max to the skies.

The UAE's aviation authority said earlier it is aware that the FAA is co-ordinating the Max's return to service with European, Canadian and Brazilian regulators.

"We support aligning of efforts of global regulators for working on the Boeing 737 Max issue," Ismaeil Mohammed Al Blooshi, assistant director general of aviation safety affairs, told The National. "We are closely working with the FAA and are in contact with [the European Union Aviation Safety Agency] on the improvements to the aircraft to ensure acceptable levels of safety prior to unbanning of the model in the UAE. It is not possible to provide any timeline at this stage due to ongoing review work."

The specs

Engine: 2.0-litre 4-cylinder turbo

Power: 258hp from 5,000-6,500rpm

Torque: 400Nm from 1,550-4,000rpm

Transmission: Eight-speed auto

Fuel consumption: 6.1L/100km

Price: from Dh362,500

On sale: now

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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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Know before you go
  • Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
  • If you’re driving, make sure your insurance covers Oman.
  • By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
  • Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
  • Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

 

FIXTURES

Saturday
5.30pm: Shabab Al Ahli v Al Wahda
5.30pm: Khorfakkan v Baniyas
8.15pm: Hatta v Ajman
8.15pm: Sharjah v Al Ain
Sunday
5.30pm: Kalba v Al Jazira
5.30pm: Fujairah v Al Dhafra
8.15pm: Al Nasr v Al Wasl

BABYLON
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