Workers and security personnel stand next to the hole of the Melbourne-bound Qantas Boeing 747 after it made an emergency landing in Manila.
Workers and security personnel stand next to the hole of the Melbourne-bound Qantas Boeing 747 after it made an emergency landing in Manila.

Fragments of Qantas oxygen cylinder found



Metal fragments from an oxygen cylinder have been recovered from a Qantas jumbo jet after a mid-air explosion forced it to make an emergency landing in Manila, an Australian investigator said today. The Qantas Boeing 747-400, which made the emergency landing after its fuselage was ripped open by the explosion, remains grounded in a hangar at Manila's international airport. Investigators combing the plane for clues were focusing on the possible explosion of an emergency oxygen cylinder, said Neville Blyth, lead investigator from the Australian Transport Safety Bureau (ATSB).

Mr Blyth said the fourth cylinder - in a row of six oxygen tanks from the forward cargo hold - was missing. "There has been a number of small parts recovered from inside the aircraft cabin, including part of the oxygen cylinder valve," Mr Blyth told reporters in Manila. He declined to comment on whether those parts indicated that the cylinder had disintegrated or exploded, but he acknowledged the fragments went through the cabin floor and created a 20-centimetre hole above the cylinder's location.

Asked whether it was possible the cylinder itself had been blown out of the aircraft, creating the hole in the fuselage, he said: "That is possible, yes." Mr Blyth said the recovered parts would undergo a forensic engineering examination at the ATSB's laboratories in Canberra. He said the investigation in Manila will likely end in the next two days, depending on the clues gathered so far from the 17-year-old plane. An initial report is to be issued by the ATSB within a month.

They were "investigating the aircraft and documenting the damage in a slow and methodical way. These things take time, it is important not to rush," he said. The flight data recorder and the cockpit voice recorder also have been recovered and were to be analysed in Australia, he said. "That download and analysis of the recorded data would be carried out in the next few days," he added. The Qantas Boeing 747 was flying from Hong Kong to Melbourne when an explosion led to a sudden loss of air pressure in the cabin.

The plane, which had originated in London and was carrying 365 passengers and crew, plunged 6,000 metres before stabilising, then made an emergency landing in Manila. David Cox, chief engineer for Qantas, said an explosion caused by an oxygen bottle has never happened before on a passenger airline. There have been press reports quoting some passengers as saying the oxygen masks failed to deployed, which Qantas was investigating, Mr Blyth said.

He said all passengers would be asked to recount their experiences, and are being urged to help in the investigation by submitting any photographs or videos taken in flight. "The maintenance records are being examined at the moment," Mr Blyth said, stressing it was for air worthiness. Officials were also going to determine whether an advisory to check oxygen cylinders for carriers with similar aeroplanes would be issued. Mr Cox refused to speculate on whether an exploding oxygen bottle was to blame for rupturing the plane's hull in an incident that Qantas executives acknowledged ended in a lucky escape for passengers. Australian air safety officials confirmed that if an exploding oxygen bottle is proved to have blown a hole in the jet, it would mark the first time such an incident has been recorded in a large passenger plane. "Not to my knowledge," Mr Blyth replied when asked if there were similar incidents in the past involving passenger carriers. *AFP

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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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