British Airways has reversed a decision to cancel flights to Bahrain, a route it had previously said was no longer commercially viable.
Last week, the UK airline announced plans to pull daily flights to Bahrain and Kuwait from its schedule by the end of the first quarter of 2025 due to Rolls-Royce Trent 1000 engine issues on the Boeing 787 Dreamliner fleet.
The move caused an international outcry, angering politicians in the UK, as well as the Bahraini government, who said they had not been consulted before the decision was made. This happened while Bahrain's King Hamad was in the UK being hosted by King Charles III as the Gulf monarch marks his silver jubilee year.
In a U-turn on Tuesday night, however, the British flag carrier said it would operate a direct service between London and Bahrain three times a week from the start of the summer season in 2025. Instead of a reduction, this will amount to an increase in daily services from next winter.
Flights to Kuwait will still be suspended as previously planned, although the decision remains “under review”, the airline said.
“The London-Bahrain route has long been a cornerstone of connectivity between the United Kingdom and Bahrain, fostering deep bonds of friendship, economic exchange and cultural enrichment,” the Bahrain Airport Company said in a statement seen by The National.
“British Airways’ decision to maintain its commitment to Bahrain underscores the enduring strength of the bilateral relationship between the two nations. This partnership not only fuels economic growth and unlocks commercial opportunities but also enhances convenience and connectivity for travellers on both sides.”
Stanley Szecowka, managing editor of Bahrain’s national newspaper Gulf Daily News and creator of a petition to convince British Airways to keep the route, told The National it was “wonderful news”. “Hopefully our campaign helped,” he said.
A historic connection
Mr Szecowka previously told The National that the move did not make financial sense as it's a very popular route. “We have gold card BA members who have been travelling on the airline for 46 years, every year, and said they’ve never seen an empty flight,” he said. “When I go home [to the UK], as I go back once a year to see family, half the people in the queue are American serviceman getting the next flight on to the US.”
Dr Liam Fox, who served as defence secretary under former British prime minister David Cameron, also told the Daily Mail that cancelling the route would send “totally the wrong message”.
“At a time when the Gulf is becoming much more important geopolitically and we are attempting to negotiate new trade agreements in the region, this would be a blow to UK PLC,” he said. “It’s the worst possible decision at the worst possible time.”
Bahrain was a British protectorate for more than 100 years, gaining independence in 1971, and the two nations have maintained close ties, particularly in business. The island kingdom also hosts the only Royal Navy base in the region.
British Airways has been flying between Bahrain and London for 92 years. Imperial Airways, British Airways’ predecessor, flew to the island in 1932, with a transit flight from London to New Delhi, marking the company’s first entry into the Middle East.
On January 21, 1976, Concorde’s first commercial flight, BA300, was from London Heathrow to Bahrain International Airport.
The biog
Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball
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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.”
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000