After weeks of long queues at Heathrow, there are plans to hire more than 1,000 additional security officers to prepare for the summer season, the company said.
But Heathrow said that while it was prepared to play its part in ensuring ease of travel, the Home Office, which controls the border, must take responsibility, too.
“A smooth arrival is more important than ever as many people begin travelling again, and we rely on Border Force having the right plans and resources in place for the summer peak,” Heathrow said in a report released on Monday.
In recent weeks there has been a surge in demand for travel out of Britain after coronavirus travel restrictions were lifted in their entirety in March.
Staff shortages at Heathrow meant thousands of passengers had to wait for hours for security and passport checks.
There were also lengthy queues at Manchester and Birmingham airports, where staff shortages meant similar problems.
About 9.7 million passengers used Heathrow in the first three months of the year, which was in line with forecasts, the company said.
The west London airport has updated its 2022 passenger forecast from 45.5 million to 52.8 million, or 65 per cent of pre-pandemic numbers.
Despite this, Heathrow said it will not make a profit in 2022 as “demand remains very volatile”.
The losses incurred during the pandemic by Heathrow, the UK’s busiest airport, have exceeded £4 billion ($5.1bn).
“Demand remains very volatile, and we expect these passenger numbers to drop off significantly after the summer,” a spokesman for the airport said.
“We are already seeing airlines cancelling services into the autumn, and the realities of higher fuel costs, lower GDP growth, the war in Ukraine and the pandemic will drag on demand.
“We are still in a pandemic, with many markets still closed, nearly 80 per cent with testing and vaccination requirements, and another variant of concern could mean the return of UK travel restrictions.”
The airport reported a big surge in demand for last-minute bookings over the Easter holiday, and the summer period is expected to bring more demand.
Heathrow said more than 95 per cent of passengers went through security checks within five minutes at Easter.
Terminal 4, which has been closed since the pandemic began in 2020, will be back in operation by July to ease pressure on the terminals in operation — T2, T3 and T5.
The company said it is assisting airlines, ground handlers and retailers to recruit staff after thousands of workers were laid off during the coronavirus period. About 12,000 jobs have opened up at the airport as the travel industry recovers.
“I want to thank colleagues who worked very hard to ensure the start of 2022 has gone to plan, and I want to reassure passengers that we’re redoubling our efforts to ensure this summer’s journeys go safely and smoothly,” said John Holland-Kaye, Heathrow chief executive.
“These past few weeks have only reinforced our view that passengers want easy, quick and reliable journeys every time they travel, and we can continue to deliver that for less than a 2 per cent increase in ticket prices.
“The CAA [Civil Aviation Authority] should be aiming to secure this win for passengers instead of pushing plans which will cut investment in service, increase queues and make delays a permanent feature post-Covid,” he said.
“We have a lot of work to do to reclaim Heathrow’s crown as Europe’s largest airport, which will deliver more competition and choice for passengers and more growth for Britain, and we need the regulator to help us do it.”
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.”
Fixtures
Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am
Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am
Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am
Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight
Charlotte Gainsbourg
Rest
(Because Music)