Flights between UK and Israel cancelled as tensions escalate in region

British Airways and Wizz Air have halted flights between Heathrow and Tel Aviv in both directions because of escalating hostilities in the Middle East.

British Airways said it has cancelled the flights until at least Wednesday, while Wizz Air announced it was "temporarily suspending" flights to and from Israel.

In addition, Air France said it was halting flights to Tel Aviv and Beirut that had been scheduled for Sunday and Monday. Air France's subsidiary, Transavia, made a similar announcement.

Several carriers ceased flights to Israel and Lebanon last year, but some had resumed services in recent months.

"We've been continually monitoring the situation in the Middle East and have taken the operational decision to suspend our flights to and from Tel Aviv up to and including Wednesday 28 August," a spokesperson for British Airways said.

"Safety is always our top priority, and we're contacting customers to advise them of their travel options."

Wizz Air Airbus A320-232 plane. Wizz Air has also suspended flights to and from Tel Aviv and Beruit. EPA-EFE/TOMS KALNINS

Escalating conflict

Wizz Air gave no indication of when it will start flying to Israel - a company representative said affected customers would be allowed to rebook free of charge or receive full refunds.

Those who booked through online travel agencies or other third parties should contact them, the airline added.

The cancellations come after the Israeli military said it had launched "pre-emptive" strikes against the militant group Hezbollah in southern Lebanon on Sunday.

Air France Airbus A320 (F-GXKP) plane. Air France and its subsidiary Transavia have suspended flights to Beirut and Tel Aviv. EPA-EFE/FILIP SINGER

Virgin Atlantic, which was hoping to resume its services between Heathrow and Tel Aviv on September 5, said it will extend its flight suspension following a "security and safety assessment".

The airline now plans to restart flights from September 25.

"Our teams will be in contact with anyone affected to discuss options, which include rebooking to a later date or a full refund and, in the meantime, customers can benefit from our partnership with El Al which operates multiple daily flights between Heathrow and Ben Gurion Airport," a Virgin spokesperson said.

"We remain committed to our services to Israel and look forward to resuming flights to Tel Aviv as soon as the situation permits."

Likewise, German airline Lufthansa said on Friday that it was extending the suspension of its flights to and from Beirut to the end of September, adding that it would not fly to Tel Aviv and Tehran until September 2.

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.”

MO

%3Cp%3E%3Cstrong%3ECreators%3A%20%3C%2Fstrong%3EMohammed%20Amer%2C%20Ramy%20Youssef%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMohammed%20Amer%2C%20Teresa%20Ruiz%2C%20Omar%20Elba%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nag%20Ashwin%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EPrabhas%2C%20Saswata%20Chatterjee%2C%20Deepika%20Padukone%2C%20Amitabh%20Bachchan%2C%20Shobhana%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E%E2%98%85%E2%98%85%E2%98%85%E2%98%85%3C%2Fp%3E%0A

Boulder shooting victims

• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65

UK to quarantine incoming airline passengers for 14 days

Coronavirus: British public rally around government despite mounting death toll

Arab artists in the UK thank NHS staff by painting their portraits

Coronavirus: Europe will emerge stronger than ever