Visitors wait to tour the Emirates Airbus A380 when it was on display at the Dubai Air Show in 2005. AFP
Visitors wait to tour the Emirates Airbus A380 when it was on display at the Dubai Air Show in 2005. AFP
Visitors wait to tour the Emirates Airbus A380 when it was on display at the Dubai Air Show in 2005. AFP
Visitors wait to tour the Emirates Airbus A380 when it was on display at the Dubai Air Show in 2005. AFP

Cleared for take-off: When the Airbus A380 made its Middle East debut


Katy Gillett
  • English
  • Arabic

Emirates has historically been a big fan of the Airbus A380. It was the first airline to sign up for it, when it ordered seven, with an option on five more, at the Farnborough Airshow in 2000. On November 22, 2005, mere months after Airbus held its first test flight of the aircraft at its assembly plant in Toulouse, France, the plane made its Middle Eastern debut at the Dubai Airshow adorned in full Emirates livery.

In October 2007, the aircraft had its commercial debut, as Singapore Airlines ran Flight SQ380 from Singapore to Sydney. Emirates was the second airline to receive its order, and it put the planes to work in August 2008 between Dubai and New York.

To this day, the A380, nicknamed the super­jumbo, is the world's largest passenger plane. It typically holds about 525 people per flight, but can carry up to 853, depending on seat configuration. Airlines across the globe have achieved new levels of luxury by utilising the vast space the two-storey aircraft affords, such as when Etihad introduced its three-room Residence in 2014, a unique flying suite that comes complete with butler service.

Having this plane as part of its portfolio always made a lot of sense for Emirates, as it offers hundreds of long-haul flights and simply needs the space. That's how it's ended up as the largest operator of the A380 and accounts for 123 of the 274 ever ordered.

But this year, Airbus announced it would end production of the double-decker in 2021, as it turns to creating more economical models (not many airlines can fill such a massive aircraft in the same way Emirates and Etihad can, after all). But passengers can expect to fly in comfort on these behemoths for years to come, before it's truly consigned to history.

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Countdown to Zero exhibition will show how disease can be beaten

Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a  month before Reaching the Last Mile.

Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.

 

Gulf rugby

Who’s won what so far in 2018/19

Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain

What’s left

UAE Conference

March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers

March 29, final

UAE Premiership

March 22, play-offs: 
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes

March 29, final

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.”

Scoreline

Abu Dhabi Harlequins 17

Jebel Ali Dragons 20

Harlequins Tries: Kinivilliame, Stevenson; Cons: Stevenson 2; Pen: Stevenson

Dragons Tries: Naisau, Fourie; Cons: Love 2; Pens: Love 2

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Strait of Hormuz

Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.

The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.

Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.

Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.

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