• Emirates SkyCargo is marking one year of transporting cargo on aircraft seats. Courtesy, Emirates Airline
    Emirates SkyCargo is marking one year of transporting cargo on aircraft seats. Courtesy, Emirates Airline
  • More than 3,100 flights have been used to carry more than 11,000 tonnes of vital cargo, including PPE. Courtesy, Emirates Airline
    More than 3,100 flights have been used to carry more than 11,000 tonnes of vital cargo, including PPE. Courtesy, Emirates Airline
  • PPE, medical equipment, garments and clothing, dry food, dental supplies and sporting goods have also been transported on seats in the last year. Randi Sokoloff / The National
    PPE, medical equipment, garments and clothing, dry food, dental supplies and sporting goods have also been transported on seats in the last year. Randi Sokoloff / The National
  • Emirate SkyCargo's freight division adjusted its operating model to load selected goods inside the cabins of its Boeing 777-300ER planes. Courtesy, Emirates Airline
    Emirate SkyCargo's freight division adjusted its operating model to load selected goods inside the cabins of its Boeing 777-300ER planes. Courtesy, Emirates Airline
  • Ten Boeing 777-300ER planes were entirely modified, and the seats taken out to make room for more cargo. Courtesy Emirates Airline
    Ten Boeing 777-300ER planes were entirely modified, and the seats taken out to make room for more cargo. Courtesy Emirates Airline
  • The seats were removed due to strong demand for cargo space during the pandemic. Courtesy Emirates
    The seats were removed due to strong demand for cargo space during the pandemic. Courtesy Emirates

Emirates SkyCargo marks year of putting parcels instead of people on plane seats


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Emirates SkyCargo marked a year since it started transporting cargo in the cabins of its planes.

In the past 12 months, more than 3,100 flights were used to carry more than 11,000 tonnes of goods, filling the equivalent of 800,000 aircraft seats.

The demand for vital cargo to be transported around the world in 2020 came to a crunch point when countries closed their borders and airlines stopped passenger flights.

Normally the hold of each passenger aircraft carries travellers’ luggage alongside commercial cargo.

As international travel ceased, the demand for vital kit such as personal protective equipment and other medical supplies became urgent, particularly during the first wave of the pandemic.

European countries including Italy and the UK ran short of PPE in April 2020.

Emirates SkyCargo quickly responded to the demand, and the freight division adjusted its operating model to load selected goods in the cabins of its Boeing 777-300ER planes.

In 10 aircraft, all the seats were removed from economy class.

In the others, once the hold was full, cargo was loaded on to seats and in overhead bins.

Emirates SkyCargo had to rapidly develop a set of procedures to ensure the operation was efficient, safe and secure.

It developed coverings to protect passenger seats and interiors, and a smart calculator application to help global teams work out the optimal loading capacity.

PPE and medical equipment can be transported in smaller boxes than many other items, meaning it is comparatively easy to handle in a confined space such as a plane cabin.

Other general cargo including garments and clothing, dry food, dental supplies and sporting goods were also transported on seats.

One year on, Emirates SkyCargo says there is significant demand for the in-cabin service among its connections, which include more than 135 cities.

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Results

Stage three:

1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-43

2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s

3. Tom Dumoulin (NED) Jumbo-Visma, at 14s

4. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s

5. Joao Almeida (POR) UAE-Team Emirates, at 22s

6. Mikkel Bjerg (DEN) UAE-Team Emirates, at 24s

General Classification:

1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-13-02

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3. Jasper Philipsen (BEL) Alpecin Fenix, at 12s

4. Tom Dumoulin (NED) Jumbo-Visma, at 14s

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6. Joao Almeida (POR) UAE-Team Emirates, at 22s

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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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