Etihad Airways cuts economy cabin baggage allowance — but how do other airlines compare?

Etihad Airways has updated its cabin baggage policy and will now allow economy class passengers to only bring a single bag, weighing no more than seven kilograms, onboard the aircraft.

“Etihad has updated its cabin baggage policy to better manage the amount of luggage brought on board as we enter the peak travel season and prepare for a high number of guests on all flights,” the airline said in a statement.

“Excess cabin baggage can impact operations, often causing delays when additional baggage needs to be checked into the hold at the gate. By offering our guests an allowance of 7kg of cabin baggage in one bag, we will reduce the risk of disruption, ensuring on time performance and minimising delays.”

In addition to a maximum weight of 7kg, cabin bags must have a maximum width of 56 centimetres, height of 36cm and depth of 23cm. Passengers flying with infants are entitled to carry one additional cabin bag, with the same maximum dimensions, as well as one stroller, one carrycot or one car seat. “If cabin baggage exceeds our maximum weight or dimension limits, guests will be asked to check bags in,” says the Etihad statement.

This new policy brings Etihad in line with most international airlines, where one piece of cabin luggage, weighing 7kg, is the norm. Qantas, Cathay Pacific and Singapore Airlines all allow one piece of onboard baggage, weighing 7kg, with total dimensions of 115cm, for economy class passengers.

British Airways is one of the more generous airlines when it comes to onboard baggage, allowing one larger cabin bag, with a maximum weight of 23kg, as well as a smaller handbag or laptop-sized bag, which must be smaller that 40cm x 30cm x 15cm. However, the airline does specify: “On busy flights, you may be asked to check-in your larger cabin bag. Make sure your travel documents, valuables and other essentials, such as spare device batteries and power packs, are carried in your smaller bag.”

Virgin Atlantic also allows guest to take one piece of hand baggage onboard its flights, “in addition to the normal stuff you'd carry with you, like your coat or handbag”.

Etihad Airways among world's safest airlines in 2022:

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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.”

Etihad Airways cuts economy cabin baggage allowance — but how do other airlines compare?

Passengers are now only allowed to bring a single piece of cabin baggage, weighing a maximum of seven kilograms, onboard with them

Etihad Airways among world's safest airlines in 2022:

Company%20profile

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