Flydubai has asked staff furloughed during the Covid-19 pandemic last year to return to work from June amid rising optimism about a rebound in summer travel.
The airline wrote to affected workers last week and gave them “a schedule to start coming back", chief executive Ghaith Al Ghaith told aviation consultant John Strickland during an online session at the Arabian Travel Market conference on Tuesday.
"[These are] all the people who were on unpaid leave,” he said. “That was a huge satisfaction from our side that we can bring back people.”
The Covid-19 pandemic hit the aviation industry hard, forcing airlines around the world to preserve cash by grounding aircraft and laying off or furloughing employees.
Flydubai had offered its staff the option of either unpaid leave or redundancy. About 97 per cent of affected staff chose to go on unpaid leave, said Mr Al Ghaith.
“I understand part of it is because people have no other choice... but it was a commitment from the people that they wanted to stick with the airline and we stuck with them,” he said.
In its 2020 annual earnings report, flydubai said 1,092 of its 3,796 workers went on unpaid or voluntary leave. The airline's workforce shrank by 3.2 per cent last year, compared with the previous year, it said.
The state-owned airline worked with regulatory authorities and partners to support staff on unpaid leave, said Mr Al Ghaith.
It teamed up with banks to provide relief such as loan repayment holidays to its affected employees.
“We tried to work out some of their problems because ... for a lot of people who work for us, the UAE is their second home,” he said.
“The feedback we got during this terrible time of how people valued what we have done was so encouraging. That made us so proud that we can do even more. This is a very big exercise to build people’s loyalty to the brand.”
Flydubai is upbeat about this year’s summer travel period. Before flights to India, Pakistan and Nepal were halted, the airline had reached more than 65 per cent of its pre-crisis capacity, said Mr Al Ghaith.
“We are very optimistic that with the summer coming up, things ... will be even better,” he said, noting this would depend on the travel restrictions of other countries.
“The biggest question will be which countries will be open. We are open here and ready for business in the UAE and the airline is ready.”
The budget airline has already revealed new summer routes to tap into pent-up travel demand.
It said yesterday that it will start flying to the Greek islands of Santorini and Mykonos, Bodrum and Trabzon in Turkey, Naples in Italy and Salzburg in Austria in the next two months.
Flydubai is currently using 10 of its 14 Boeing 737 Max aircraft after the UAE aviation regulator approved the jet’s return to the skies in January.
“We have opened new destinations ... that probably we would have not flown to, but because these are opportunities presented to us [through the 737 Max’s return]. There will be more of these opportunities,” said Mr Al Ghaith.
He said there is “huge potential” to deepen its existing partnership with sister company Emirates.
“With Emirates, we have a huge opportunity to work together,” said Mr Al Ghaith.
The two Dubai government-owned airlines co-ordinated before the pandemic on “basic” elements such as code-sharing and schedules.
They also reduced layovers and moved flydubai flights closer to Emirates at Dubai International airport's Terminal 3.
This gave the airlines a “huge business opportunity and this will continue”, he said.
Emirates and flydubai will remain separate brands while forging closer ties, he said, echoing comments by Emirates airline president Tim Clark's this week.
“Right now, the objective is to work as two separate airlines but that does not mean we cannot grow together,” said Mr Al Ghaith. “There is huge potential.”
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At a glance
Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free
Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland
UAE squad Rohan Mustafa (c), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan
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.”
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
On Instagram: @WithHopeUAE
Although social media can be harmful to our mental health, paradoxically, one of the antidotes comes with the many social-media accounts devoted to normalising mental-health struggles. With Hope UAE is one of them.
The group, which has about 3,600 followers, was started three years ago by five Emirati women to address the stigma surrounding the subject. Via Instagram, the group recently began featuring personal accounts by Emiratis. The posts are written under the hashtag #mymindmatters, along with a black-and-white photo of the subject holding the group’s signature red balloon.
“Depression is ugly,” says one of the users, Amani. “It paints everything around me and everything in me.”
Saaed, meanwhile, faces the daunting task of caring for four family members with psychological disorders. “I’ve had no support and no resources here to help me,” he says. “It has been, and still is, a one-man battle against the demons of fractured minds.”
In addition to With Hope UAE’s frank social-media presence, the group holds talks and workshops in Dubai. “Change takes time,” Reem Al Ali, vice chairman and a founding member of With Hope UAE, told The National earlier this year. “It won’t happen overnight, and it will take persistent and passionate people to bring about this change.”
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