US authorities on Friday gave a much-anticipated update on the investigation into a deadly collision between two aircraft late last month, saying that officials were looking into an inconsistency in the data with regard to the height of the helicopter at the time of the crash.
Jennifer Homendy, chairwoman of the National Transportation Safety Board, said officials had the “perishable evidence” needed to continue the investigation into the collision between the American Airlines plane and the US Army Black Hawk helicopter at Ronald Reagan National Airport near Washington that resulted in the deaths of 67 people.
Ms Homendy noted that there seemed to be a discrepancy as to how high the helicopter was flying, with one of the individuals on the flight saying the helicopter was at 300 feet (91 metres), and the other saying 400 feet (121 metres), according to flight data.
“Neither pilot made a comment discussing an altitude discrepancy at this time, we don't know why there was a discrepancy between the two. That's something that the investigative team is analysing,” she told reporters at the media briefing.
She later said the NTSB was looking into the possibility that bad data inside the helicopter may have prompted inaccurate readings from the pilot.
The NTSB chairwoman also said that, contrary to speculation and initial media reports, the crew of the Black Hawk were probably wearing night-vision goggles.
“We believe the helicopter crew was likely wearing night-vision goggles throughout the flight … had they been removed, the crew was required to have a discussion about going unaided, there's no evidence that conversation happened,” she said.
American Airlines flight 5342 from Wichita, Kansas – carrying 60 passengers and four crew – was flying to Ronald Reagan National Airport at an altitude of about 120 metres and travelling at about 220kph when it went down over the Potomac River after colliding with the Black Hawk.
Recovery efforts are still under way along the Potomac, where debris from both aircraft is still being discovered, although at Wednesday's briefing, the NTSB indicated it had enough debris to move forward with the investigation.
“We're going to do a visibility study, too,” said Ms Homendy.
“We will also do a laser scan of the cockpits of the plane and Black Hawk, and we're going to take that information as well as information from examination of the wreckage, different seating positions, different heights, different eye positions, also taking into account night vision goggles. And we're going to do a pretty in-depth visibility study.”
The NTSB had previously been seeking comment from any people who may have witnessed the crash to get a better idea of what might have happened.
Helicopter traffic has been heavily restricted near Reagan National Airport since the deadly crash. Some have suggested keeping those restrictions in place indefinitely.
“It's too early for us to say whether it should be permanent,” Ms Homendy said. “However, that's certainly something that the secretary of the FAA [Federal Aviation Administration] can do on their own.”
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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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