Flydubai to start charging passengers for films



Dubai's biggest budget airline, flydubai, is preparing to start charging passengers to watch films onboard.

The airline brought no-frills travel to the emirate with passengers paying more or less depending on their use of services such as baggage check and meals.

With new aircraft delivered with in-flight entertainment systems, flydubai is now including entertainment in its itemised pricing system, first widely used by Air Canada and now common throughout the US.

"In line with flydubai's culture of only charging travellers for the services they use, the new in-flight entertainment will be available as an optional extra in the way that baggage and meals are," the airline said. "Passengers travelling on these new flydubai aircraft will have the ability to choose what they want to watch depending on their preference and how much they want to spend," the airline said, without elaborating.

Watching a film on the new aircraft will cost about Dh25 (US$6.80), while TV programmes on the in-flight system will cost between Dh5 and Dh10, depending on their length.

Previously, flydubai ended the widespread Middle East practice of airlines allowing free luggage check-in. Recently, flydubai expanded its luggage policy, slightly reducing the carry-on weight allowance and introducing a scale of charges for checked baggage.

The new a la carte entertainment options is made possible by the delivery of four new Boeing 737-800 aircraft with Lumexis in-flight entertainment systems.

The deliveries have boosted the flydubai fleet by 45 per cent to 13 aircraft over the past few weeks, the airline said. After launching in June last year, flydubai now flies to 28 destinations.

The airline has played a key role in opening routes between the UAE and regional cities that were deemed too small to be served by large carriers such as Emirates Airline and Etihad Airways.

"We show no sign of slowing down, with ambitious growth plans that see us expanding still over the coming months," said Ghaith al Ghaith, the chief executive of flydubai.

The recent aircraft deliveries, in addition to boosting capacity, will help the airline differentiate itself from its budget airline rivals with new technologies.

RESULT

Leeds United 1 Manchester City 1
Leeds:
 Rodrigo (59')
Man City: Sterling (17')

Man of the Match: Rodrigo Moreno (Leeds)

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'Falling%20for%20Christmas'
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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.”

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Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4