Asia-Pacific airlines’ November traffic plunged 95 per cent compared to the year-ago period, according to Iata. Clodagh Kilcoyne / Reuters
Asia-Pacific airlines’ November traffic plunged 95 per cent compared to the year-ago period, according to Iata. Clodagh Kilcoyne / Reuters
Asia-Pacific airlines’ November traffic plunged 95 per cent compared to the year-ago period, according to Iata. Clodagh Kilcoyne / Reuters
Asia-Pacific airlines’ November traffic plunged 95 per cent compared to the year-ago period, according to Iata. Clodagh Kilcoyne / Reuters

Passenger demand recovery comes to stop in November amid surge in Covid 19 cases


Fareed Rahman
  • English
  • Arabic

International passenger demand continued to be affected by the pandemic-related travel restrictions with demand plunging 88.3 per cent in November compared to the same month last year, according to the International Air Transport Association (Iata).

Domestic demand which had seen some recovery in the last few months also stalled with November traffic falling 41 per cent.

“The already tepid recovery in air travel demand came to a full stop in November. That’s because governments responded to new outbreaks with even more severe travel restrictions and quarantine measures,” Alexandre de Juniac, Iata’s director general and chief executive, said. “This is clearly inefficient. Such measures increase hardship for millions.”

Coronavirus infections continued to climb across the globe with countries announcing new lockdown measures to prevent the spread of the pandemic. As of Friday, the pandemic has infected about 89 million people globally and claimed more than 1.9 million lives, according to Worldometer, which tracks the outbreak. More than 63.6 million people have recovered from the infection.

Asia-Pacific airlines’ November traffic plunged 95 per cent compared to the year-ago period, while European carriers saw an 87 per cent decline in traffic, worsened from an 83 per cent decline in October as countries intensify travel restrictions in the wake of new coronavirus cases.

Middle Eastern airlines’ demand fell 86 per cent in November year-on-year, a slight improvement from an 86.9 per cent demand drop during the previous month, according to Iata.

North American carriers posted an 83 per cent traffic drop and Latin American airlines saw a 78.6 per cent drop in November, compared to the same month last year.

African airlines’ traffic sank 76.7 per cent in November, little changed from a 77.2 per cent drop in October, but “the best performance among the regions.”

“Vaccines offer the long-term solution. In the meantime, testing is the best way that we see to stop the spread of the virus and start the economic recovery. How much more anguish do people need to go through—job losses, mental stress—before governments will understand that?” Mr de Juniac, added.

Global air cargo demand improved in November but remained below the 2019 levels due to capacity constraints as passenger aircraft continue to remain grounded due to the coronavirus pandemic.

Air freight demand, measured in cargo tonne-kilometres, fell 6.6 per cent in November compared to the same month a year ago, Iata said in a separate statement.

Global capacity plunged 20 per cent in November from a year ago.

RESULT

Esperance de Tunis 1 Guadalajara 1 
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 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.”

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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Company%20Profile
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COMPANY PROFILE

Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar

Based: Dubai, UAE

Founded: 2014

Number of employees: 36

Sector: Logistics

Raised: $2.5 million

Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE

MATCH INFO

Jersey 147 (20 overs) 

UAE 112 (19.2 overs)

Jersey win by 35 runs

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5