A passenger, wearing a face mask to protect against the spread of coronavirus, sits at the almost empty departures hall at the Zaventem international airport in Brussels. AP.
A passenger, wearing a face mask to protect against the spread of coronavirus, sits at the almost empty departures hall at the Zaventem international airport in Brussels. AP.
A passenger, wearing a face mask to protect against the spread of coronavirus, sits at the almost empty departures hall at the Zaventem international airport in Brussels. AP.
A passenger, wearing a face mask to protect against the spread of coronavirus, sits at the almost empty departures hall at the Zaventem international airport in Brussels. AP.

Global airlines call for Covid-19 testing before people depart on international flights


Deena Kamel
  • English
  • Arabic

Global airlines are calling for Covid-19 testing before departure on international flights as an alternative to government-imposed travel restrictions such as quarantines, which the industry says is denting air travel demand.

Tests that are fast, highly accurate, affordable and easy to administer are expected to be available in October and should be adopted by governments as a globally-accepted standard, the International Air Transport Association (Iata) told reporters on Tuesday at an online conference.

"Much will need to be done to achieve 100 per cent testing of all travellers prior to departure, but we don't see any alternative solution that would be less challenging or more effective," Alexandre de Juniac, Iata's director general, said.

The global aviation industry is reeling from the impact of the Covid-19 pandemic that has decimated air travel demand. The worst crisis in the industry's history has caused airlines to slash schedules, cut jobs, ground aircraft, defer plane orders and seek financial aid packages from their governments.

Antigen tests – which detect the presence of an active virus in an infected person – should be available in the market within the "coming weeks" Mr de Juniac said. The tests can produce results within 15 minutes and cost less than $10.

Pre-departure testing should give governments the confidence to reopen their borders and assure passengers that their plans will not change due to last-minute travel restrictions, he said.

The tests will only be meaningful if the results are accepted at the arrival destination, requiring governments to agree on common standards, the Iata chief said.

Iata is proposing pre-departure testing as an alternative to quarantines and other travel restrictions that are "killing" passenger traffic.

The industry body is in talks with governments in the International Civil Aviation Organisation as well bilateral discussions with other states to convince them to adopt the testing proposal.

The tests, which could be administered in specially designated makeshift areas of airports, are a medical measure and would therefore be paid for by governments, Iata said.

The proposal comes as airlines are facing a "much weaker" fourth quarter than Iata had anticipated, Brian Pearce, Iata's chief executive, said. In August, passenger traffic has seen "some further improvement" but international air travel remains "very slow to improve", he said.

If implemented, pre-departure testing could "partly save" the winter season for carriers, Mr de Juniac said.

MATCH INFO

Bayern Munich 2 Borussia Monchengladbach 1
Bayern:
 Zirkzee (26'), Goretzka (86')
Gladbach: Pavard (37' og)

Man of the Match: Breel Embolo (Borussia Monchengladbach)

%20Ramez%20Gab%20Min%20El%20Akher
%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A

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.”

If you go

The flights

Fly direct to London from the UAE with Etihad, Emirates, British Airways or Virgin Atlantic from about Dh2,500 return including taxes. 

The hotel

Rooms at the convenient and art-conscious Andaz London Liverpool Street cost from £167 (Dh800) per night including taxes.

The tour

The Shoreditch Street Art Tour costs from £15 (Dh73) per person for approximately three hours. 

If you go

The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.


The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.


The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.