Emirates, the world's biggest long-haul carrier, is seeking more visibility from Boeing on the delivery times and performance of the delayed 777X wide-body aircraft that is still under development.
The airline, which is Boeing's biggest customer of the 777X, will have a "grown-up" discussion with the US plane maker over the coming months about when it will receive the aircraft, Emirates president Tim Clark said at the World Aviation Festival webinar on Wednesday.
"We will be having what I hope will be a grown-up conversation with the Boeing Company sometime in the next few months," Mr Clark said. "We need to know exactly what the airplane is going to do and what's going to be delivered."
The Dubai-based airline has an order for 126 of the 777X, Boeing's newest jet that is facing a lengthy development and certification timeline. Boeing said the plane's debut is now slated for late 2023, following several delays and was originally due to enter service with Emirates in the summer of 2020.
"It's unlikely that we're going to get it before 2023 or probably even 2024 and there are all sorts of hoops that they have to go through with regards to certification, build and all the other various regulatory requirements."
The 777X is Boeing's first new aircraft to be certified since flight software flaws in the 737 Max model caused two fatal crashes, which triggered allegations about the close relationship between Boeing and the US aviation regulator. The 777X programme now faces a longer certification process after scrutiny over the 737 Max.
"Boeing builds very good airplanes, they design very good airplanes and I don't want to cast any doubt on that at all, it's simply how they're built and under what conditions, what new quality controls they're coming in with, that's slowing the whole process," Mr Clark said.
The airline chief said Emirates has not made a decision on the final composition of its Boeing fleet mix of 777Xs yet until it gets more updates from Boeing on the new jet.
"We'd like more visibility on exactly when we're going to receive these airplanes and exactly what they're going to be able to do with regards to performance on the contractual side of things, including propulsion. So we [don't have] visibility either on delivery or performance at this stage in the game," Mr Clark said. "So we're kind of reserving our position on where we are with this airplane."
Emirates is the biggest operator of the Boeing 777 mini-jumbos and was involved with the early design of the revamped 777X in 2010.
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Boeing 777X - in pictures
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The airline is considering converting some of its older 777 passenger aircraft into freighters as demand for air cargo remains strong during the Covid-19 pandemic, Mr Clark said.
Emirates is also working with budget airline Flydubai on broadening their partnership through greater network and fleet integration to create an even bigger international hub in Dubai, Mr Clark said.
"Clearly the value of having two airlines joined at the hip makes more sense now than in the past," he said.
Greater collaboration between the two airlines, which have deepened ties since 2017, will lead to a drop in unit costs and "stupendous" income, he said.
Mr Clark, 70, who delayed his retirement plan in mid-2020 to help Emirates navigate through the Covid-19 crisis, said he wants to set the airline's future path before stepping down but did not set a retirement date.
The aviation veteran said his successor has to be focused, driven and work well with the Flydubai chief. His replacement could be an internal candidate "if I had it my way" but an executive from within Dubai's aviation sector would also a be viable option, he said.
Emirates has sufficient cash to cover its operations for the next six to eight months but may need to raise more cash if air travel demand does not rebound from the Covid-19 pandemic by then, Mr Clark said.
The state-owned airline will make the recommendation to the Dubai government on raising cash with options including further equity from the government, taking on more debt or other measures, he said.
Mr Clark remains hopeful for a revival in demand during the summer season, as vaccine campaigns continue not just in Western countries but also in developing markets.
FIXTURES
Fixtures for Round 15 (all times UAE)
Friday
Inter Milan v AS Roma (11.45pm)
Saturday
Atalanta v Verona (6pm)
Udinese v Napoli (9pm)
Lazio v Juventus (11.45pm)
Sunday
Lecce v Genoa (3.30pm)
Sassuolo v Cagliari (6pm)
SPAL v Brescia (6pm)
Torino v Fiorentina (6pm)
Sampdoria v Parma (9pm)
Bologna v AC Milan (11.45pm)
Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.
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COMPANY%20PROFILE
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From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
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.”
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Killing of Qassem Suleimani
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
The years Ramadan fell in May
more from Janine di Giovanni
Match info:
Burnley 0
Manchester United 2
Lukaku (22', 44')
Red card: Marcus Rashford (Man United)
Man of the match: Romelu Lukaku (Manchester United)
PREMIER LEAGUE FIXTURES
Tuesday (UAE kick-off times)
Leicester City v Brighton (9pm)
Tottenham Hotspur v West Ham United (11.15pm)
Wednesday
Manchester United v Sheffield United (9pm)
Newcastle United v Aston Villa (9pm)
Norwich City v Everton (9pm)
Wolves v Bournemouth (9pm)
Liverpool v Crystal Palace (11.15pm)
Thursday
Burnley v Watford (9pm)
Southampton v Arsenal (9pm)
Chelsea v Manchester City (11.15pm)
Normal People
Sally Rooney, Faber & Faber
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