Tim Clark said Emirates may explore ‘creative’ ways to work around the devices ban if it remains in place over the long term. Pawan Singh / The National
Tim Clark said Emirates may explore ‘creative’ ways to work around the devices ban if it remains in place over the long term. Pawan Singh / The National
Tim Clark said Emirates may explore ‘creative’ ways to work around the devices ban if it remains in place over the long term. Pawan Singh / The National
Tim Clark said Emirates may explore ‘creative’ ways to work around the devices ban if it remains in place over the long term. Pawan Singh / The National

Business

Emirates might offer ‘loaner laptops’ to passengers amid US ban

Tim Clark said the loaners could “be used in-flight to help people do what they need to do in the absence of devices that are in the hold.”

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Emirates airline might offer passengers loaner laptops as the world’s biggest long-haul carrier seeks to soften the blow from a US ban on electronics in airplane cabins.

The Dubai-based airline may explore “creative” ways to work around the ban if it remains in place over the long term, the airline’s president, Tim Clark, said in an interview. That could include providing government-approved laptops that “can be used in-flight to help people do what they need to do in the absence of devices that are in the hold.”

The airline’s routes to the US could be at risk if travellers book with rivals, Mr Clark indicated. If customer demand diminishes due to “whatever actions the United States government takes, we will have to adjust accordingly, that’s just good business,” he said.

Under a rule that came into effect on Saturday, the US prohibits travelers on flights from 10 Middle Eastern airports, including Dubai, from bringing large electronics into the aircraft cabin. The UK partially followed, but didn’t target the Arabian Gulf hubs. The ban deals a blow to the likes of Emirates, Etihad Airways and Qatar Airways after Donald Trump earlier this year attempted to restrict citizens from seven Muslim-majority countries from entering the US.

Mr Clark was critical of the selective targeting of the laptop ban, saying if there’s a risk that laptops can be used during flights for terrorist activity, then the restriction “should be applied to the airline industry universally”.

After Mr Trump’s initial travel ban, Emirates said the rate of bookings growth to the US dropped. The latest policy won’t “help” demand for Emirates’ 18 flights a day to the US, Mr Clark said, adding that a true assessment of the ban’s impact will come next month as travelers plan summer vacations.

Still, no changes are planned yet, and Emirates expects “robust demand” on its new Athens-Newark route this year, which will be exempt from the US order.

While there have been some difficulties on the US side, the first 48 hours of the ban’s implementation, including allowing passengers to use laptops up until boarding, have proceeded without customer complaints, according to the Emirates chief.

“So far, so good,” he said. “It’s still early days, we have to see what the next few months will bring us.”

* Bloomberg

if you go

The flights

Flydubai flies to Podgorica or nearby Tivat via Sarajevo from Dh2,155 return including taxes. Turkish Airlines flies from Abu Dhabi and Dubai to Podgorica via Istanbul; alternatively, fly with Flydubai from Dubai to Belgrade and take a short flight with Montenegro Air to Podgorica. Etihad flies from Abu Dhabi to Podgorica via Belgrade. Flights cost from about Dh3,000 return including taxes. There are buses from Podgorica to Plav. 

The tour

While you can apply for a permit for the route yourself, it’s best to travel with an agency that will arrange it for you. These include Zbulo in Albania (www.zbulo.org) or Zalaz in Montenegro (www.zalaz.me).

 

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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.”

While you're here
The biog

Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages

Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”  

Favourite food: “I'm a vegetarian, so I can't get enough of salad.”

Favourite film:  “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”

Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”

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