The US banned electronic devices larger than a mobile phone from passenger cabins of direct flights from eight countries in the Middle East, North Africa and Turkey, including Qatar and the UAE. It was later lifted in several countries, including the UAE. Photo: AFP
The US banned electronic devices larger than a mobile phone from passenger cabins of direct flights from eight countries in the Middle East, North Africa and Turkey, including Qatar and the UAE. It was later lifted in several countries, including the UAE. Photo: AFP
The US banned electronic devices larger than a mobile phone from passenger cabins of direct flights from eight countries in the Middle East, North Africa and Turkey, including Qatar and the UAE. It was later lifted in several countries, including the UAE. Photo: AFP
The US banned electronic devices larger than a mobile phone from passenger cabins of direct flights from eight countries in the Middle East, North Africa and Turkey, including Qatar and the UAE. It wa

Aircraft laptop ban could have cost Emirates half of its US business, airline president says


Haneen Dajani
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Emirates airline could have lost as much as half of its business to the United States had it, Dubai Airports and security not rallied together to effectively manage the laptop ban, the head of the carrier said.

Sir Tim Clark said the ability to meet the conditions of the ban within 96 hours and avoid disruption of travellers is an example of how collaborative and innovative thinking can work for the aviation industry.

The carrier's president was speaking during an opening address of the Avsec aviation summit in Dubai on Sunday.

“When the new protocols were first announced, airlines, airports and other stakeholders were caught by surprise. And we had just 96 hours to implement the directive,” Sir Tim told an audience of aviation and security industry figures.

The directive was issued by the Trump administration for a number of airports in the Middle East and North Africa in March over of concerns that explosives that could be concealed in laptops and tablets. It was lifted in July for Emirates and Etihad, among others.

Sir Tim said the ban "affected us probably more than any other airline". Emirates cut flights on five US routes at the time.

“Each day, we connect thousands of passengers from Asia, Africa, and the Middle East, to 12 cities in the US," he said.

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“For us, the new electronics ban protocol was hugely disruptive and we could have lost up to 50 per cent of our loads to the US, if not for the swift and collaborative response from all the aviation stakeholders here in Dubai."

The airline collaborated with the airport, police and other security operators to meet the deadline by complying with the new directive.

The ban ultimately resulted in a dip on routes to the US by as much as 20 per cent.

He said the airline they came up with a solution to allow travellers use their electronic devices on their flights to Dubai, while in transit at the airport, and all the way until the moment they boarded their US-bound flight.

“We found a way to collect these devices at the boarding gate, and then pack, secure, and place anything larger than a phablet into the hold, to be returned to their owners on arrival in the US," he said.

He said this kept customers happy, and all the more understanding of the circumstances.

“Dubai led the way, and other airlines and airports soon followed suit.”

The issue was followed by yet another challenge.

“We were given 21 days to put in place increased explosive trace detection screening and 120 days to comply with a number of other security measures," he said.

In response, all concerned aviation stakeholders worked together to procure new screening technology, and deploy trained personnel.

This “success story”, he said, illustrates how even under pressure, collaborative efforts could lead to the best outcome.

“We believe that as an industry, we should take a proactive approach to anticipating and addressing the threats and challenges of the future," he said.

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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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.”

FIRST TEST SCORES

England 458
South Africa 361 & 119 (36.4 overs)

England won by 211 runs and lead series 1-0

Player of the match: Moeen Ali (England)

 

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4.35pm: Tilal Al Khalediah
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