Choi Sang-mok, South Korea's acting president, places a flower at a memorial for victims of the Jeju Air plane crash, at a sports park in Muan, South Korea, on Monday, AP
Choi Sang-mok, South Korea's acting president, places a flower at a memorial for victims of the Jeju Air plane crash, at a sports park in Muan, South Korea, on Monday, AP
Choi Sang-mok, South Korea's acting president, places a flower at a memorial for victims of the Jeju Air plane crash, at a sports park in Muan, South Korea, on Monday, AP
Choi Sang-mok, South Korea's acting president, places a flower at a memorial for victims of the Jeju Air plane crash, at a sports park in Muan, South Korea, on Monday, AP

South Korea orders airline safety inspections after Jeju Air crash


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South Korea's acting president, Choi Sang-mok, has ordered an emergency safety inspection of the country's entire airline operation system following the deadliest air disaster in the country.

All 175 passengers and four of the six crew members were killed when the Jeju Air Boeing 737-800 aircraft belly-landed and exploded into a fireball after skidding off the end of the runway at Muan International Airport on Sunday.

The country is observing seven days of mourning for the victims, five of whom were children, with the youngest being a three-year-old boy.

South Korean authorities are still trying to determine the cause of Sunday's crash, which occurred days after an Azerbaijan Airlines flight crashed in Kazakhstan, killing 38 of the 67 people on board.

“Even before the final results are out, we ask that officials transparently disclose the accident investigation process and promptly inform the bereaved families,” Mr Choi told a disaster management meeting in Seoul on Monday.

“As soon as the accident recovery is conducted, the Transport Ministry is requested to conduct an emergency safety inspection of the entire aircraft operation system to prevent recurrence of aircraft accidents,” he said. The ministry said authorities were considering whether to conduct a special inspection of all 101 Boeing 737-800 aircraft operated by South Korean airlines.

  • Firefighters work at the wreckage of a Jeju Air aircraft which crashed while landing at Muan International Airport in South Korea on Sunday morning. EPA
    Firefighters work at the wreckage of a Jeju Air aircraft which crashed while landing at Muan International Airport in South Korea on Sunday morning. EPA
  • Black smoke emits from Jeju Air flight 7C2216 as it veers off the runway. Reuters
    Black smoke emits from Jeju Air flight 7C2216 as it veers off the runway. Reuters
  • The aircraft slams into a wall. Reuters
    The aircraft slams into a wall. Reuters
  • The plane is engulfed in flames after hitting a wall. Reuters
    The plane is engulfed in flames after hitting a wall. Reuters
  • The plane came off the runway and struck a wall before bursting into flames, killing dozens. Yonhap / AFP
    The plane came off the runway and struck a wall before bursting into flames, killing dozens. Yonhap / AFP
  • Rescue personnel near the tail section of the aircraft after it crashed. AFP
    Rescue personnel near the tail section of the aircraft after it crashed. AFP
  • At least 47 died in the disaster, officials said. Yonhap / AFP
    At least 47 died in the disaster, officials said. Yonhap / AFP
  • The tail appears to have snapped from the main body of the aircraft. Yonhap via Reuters
    The tail appears to have snapped from the main body of the aircraft. Yonhap via Reuters
  • Passengers were seen being rushed to emergency wards in Muan in the far south of the country. Yonhap via Reuters
    Passengers were seen being rushed to emergency wards in Muan in the far south of the country. Yonhap via Reuters
  • Acting President Choi Sang-mok called for the mobilisation of all resources to save the surviving passengers. Reuters
    Acting President Choi Sang-mok called for the mobilisation of all resources to save the surviving passengers. Reuters
  • Jeju Air CEO Kim E-bae, fourth from left, and other executive members bow in apology ahead of a briefing in Seoul, South Korea. AP
    Jeju Air CEO Kim E-bae, fourth from left, and other executive members bow in apology ahead of a briefing in Seoul, South Korea. AP
  • A life jacket hangs on a fence next to the wreckage. Reuters
    A life jacket hangs on a fence next to the wreckage. Reuters
  • Relatives of passengers of the aircraft that crashed after it went off the runway. Reuters
    Relatives of passengers of the aircraft that crashed after it went off the runway. Reuters

The order came as Jeju Air reported that another of its Boeing 737-800 aircraft had to return to Seoul's Gimpo International Airport because of a problem with its landing gear.

Soon after Flight 7C101 from Seoul to Jeju Island took off at 6.37am, "a signal indicating a landing gear issue was detected on the aircraft's monitoring system", airline official Song Kyung-hoon told a news conference.

"At 6:57am, the captain communicated with ground control, and after taking additional measures, the landing gear returned to normal operation. However, the decision was made to return to the airport for a thorough inspection of the aircraft," he said.

The Jeju Air plane that crashed on Sunday was arriving from the Thai capital Bangkok. As the pilots made a scheduled approach, they told air traffic control that the aircraft had suffered a bird strike, shortly after the control tower gave them a warning birds were spotted in the vicinity, Transport Ministry officials said.

Transport Ministry officials said the jet's flight data recorder was recovered but appeared to have sustained some damage, and it was not yet clear whether the data was sufficiently intact to be analysed.

The crash killed mostly local residents who were returning from holidays in Thailand, as well as two Thai nationals. Investigators were still trying to identify some of the victims' remains on Monday as anguished families waited in the airport terminal.

Muan airport has been closed until Thursday, but the rest of the country's international and regional airports, including the main Incheon International Airport, were operating normally.

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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.”

If you go…

Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.

Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days. 

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Updated: December 30, 2024, 8:52 AM