Airbus's new A220-100 private jet comes with a VIP cabin, king-size bed and standing rainshower


Hayley Skirka
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In the age of Covid-19, flying privately could have more advantages than flying commercially, with passengers easily able to stay within their social bubbles onboard.

Which is perhaps why Airbus Corporate Jets welcomed six orders of its latest A220 model on its very first day of sales.

Dubbed the ACJ TwoTwenty Business Jet, the aircraft can fly up to 10,500 kilometres, allowing it to directly connect travellers with major cities such as London and Los Angeles or Tokyo and Dubai.

Inside, the extra-large cabin has 785 square feet of floor space split over six luxury living areas. Up to 18 passengers can easily travel on the jet, with space for working, dining and relaxing. The ACJ TwoTwenty also has the widest seats in the industry, all of which are electronically controlled and equipped with USB sockets. There's a spacious bathroom on deck, too, complete with a standing rainshower.

The jet has advanced soundproofing, a temperature-control system and an integrated cabin humidification system. Cabin air is refreshed every three minutes with one-way air flow.

Comlux Aviation has ordered two of the private jets and plans to have them in the air by early 2023. Another four orders were placed by undisclosed customers.

Interiors can be designed to suit customers' specific needs or wants when it comes to cabin space, layout and finishings.

“Thanks to the unique combination of intercontinental range, comfort, extra space and second-to-none economics, we are convinced the aircraft will be a winner in the business aviation market," said Richard Gaona, executive chairman and executive officer at Comlux.

Despite its large interiors, the jet doesn't take up any additional parking space and will be able to take off from the same airports as other business jets. Airbus also say that it could reduce operating costs by a third compared to other long-range private aircraft.

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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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A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.