The top US aviation regulator plans to test-fly Boeing’s grounded 737 Max on Wednesday in an attempt to show an antsy public that proposed fixes will be safe, according to a notification sent to Congress.
Federal Aviation Administration chief Steve Dickson, who is licensed to fly the 737 along with several other jetliners from his time as a pilot at Delta Air Lines, will be at the controls of a Max that has been updated with a variety of fixes the agency has proposed and may soon make mandatory.
The announcement of the flight comes after the FAA and the other three leading aviation regulators elsewhere in the world this week completed assessments of new pilot training requirements for the Max, the agency told lawmakers.
The flight and the completion of training reviews are strong signals that the FAA is confident in Boeing’s best-selling plane and closing in on the final approvals needed before it can return to airline service after 18 months.
Several critical hurdles remain, such as finalising the training requirements after giving the public a chance to provide input. The FAA’s Flight Standardisation Board plans to release the training proposal “in the near future”, the agency said in the notice seen by Bloomberg.
Boeing's share price extended gains on the news, closing at $156.03 in New York on Friday, up 6.8 per cent.
Prior to making the flight, Mr Dickson along with his top deputy, Daniel Elwell, will also complete a training course that Boeing and regulators have proposed for all Max pilots.
The Max was grounded on March 13, 2019, after the second fatal crash involving an automated safety system that went haywire during malfunctions, repeatedly attempting to drive down the jets’ noses until pilots lost control. The crashes off the coast of Indonesia and in Ethiopia killed 346 people.
The system, known as Manoeuvering Characteristics Augmentation System, has been altered to prevent repeated activations and to limit how sharply it can dive. The plane’s flight control computer has also been redesigned.
Boeing has said it expects to get approval for the plane this autumn. It will still take weeks or months after the grounding order is lifted for flights to resume as airlines perform maintenance on a fleet that has sat on the ground and trains flight crews.
Mr Dickson, who had been senior vice president for flight operations at Delta before retiring, announced a few weeks after taking the helm of the agency in August 2019 that he would fly the Max before the agency signed off on its return.
Mr Elwell, the FAA’s deputy administrator, was also a pilot at American Airlines.
A group known as the Joint Operations Evaluation Board – which is made up of representatives from the FAA, Transport Canada, the European Aviation Safety Agency and the National Civil Aviation Agency of Brazil – conducted multiple exercises in simulators to evaluate what training is needed for the plane.
The group’s work went well, Patrick Ky, executive director of EASA, said on Friday in Europe.
Zayed Sustainability Prize
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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Red Joan
Director: Trevor Nunn
Starring: Judi Dench, Sophie Cookson, Tereza Srbova
Rating: 3/5 stars
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
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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.”