Heathrow Airport has been urged to get its act together and address a litany of problems rather than pointing the finger of blame at airlines.
Willie Walsh, director general of the International Air Transport Association (Iata), said it was “unacceptable” for John Holland-Kaye, the airport’s boss, to suggest airlines were somehow in the wrong.
Speaking at the Airlines 2022 conference in London on Monday, Mr Walsh said airlines were in an “extremely difficult” position in their post-pandemic recovery journey, and the issues at Heathrow had had a negative impact on them.
Passengers at the west London airport were this year forced to queue for hours to get through security. A lack of staff meant Heathrow, like other airports, was ill-prepared to cope with a sudden surge in demand for travel after Covid-19 restrictions were lifted in March.
The disruption continued into the summer and the airport made the controversial decision to impose a limit on the number of passengers airlines could fly to and from the airport.
The cap of 100,000 outgoing passengers was introduced in July before being abolished this month.
Mr Walsh said the policy had a noticeably damaging effect on airlines and served as a blockage in their bid to take advantage in an increase in demand for travel.
Responding to a question from The National, the aviation chief said there was “clear evidence that the disruption that Heathrow did have an impact” on airlines.
“If you to go back earlier this year in terms of the booking profiles, there was clear evidence that there was disruption to the pattern that we witnessed in the recovery at Heathrow,” he added. “I think that's been overcome to a large degree.
“But the fact that you had a cap on the number of passengers at Heathrow definitely suppressed the demand. Had that cap not been there, airlines operating at Heathrow would have been carrying more passengers and generating more revenue.
“So given that it largely did reduce the number of flights, it had a marginal effect but it definitely reduced the number of passengers travelling on the flights that were operating, it had a negative financial impact on the airlines operating at Heathrow.”
Mr Walsh said Heathrow continued to be a “major problem” for airlines operating from the hub.
In comments that drew laughter from the audience, he said the only other European airport that has experienced prolonged chaos is Schiphol in the Netherlands — and its chief executive lost his job. While he accused Mr Holland-Kaye of presiding over a mess, he stopped short of suggesting he should step down.
Earlier, Mr Holland-Kaye told The National that caps would be imposed over the Christmas period after recent reports suggested otherwise.
Virgin Atlantic boss Shai Weiss received a round of applause when he told delegates at the conference that Heathrow must operate at full capacity in summer 2023. The airport has said it is aiming to steer clear of passenger caps next summer.
Mr Walsh told the audience at the Airlines conference that the Heathrow boss had previously suggested airlines were partly to blame for the issues at the UK’s busiest airport.
He said the UK government and the Civil Aviation Authority “could have been more vocal in criticising Heathrow for their performance”.
“I think allowing John Holland-Kaye to point a finger at airlines and say 'it's all the airlines’ fault' was unacceptable,” Mr Walsh said.
Mr Holland-Kaye this month accused major airlines such as British Airways and Virgin Atlantic of capitalising on pent-up demand for overseas travel in the summer, maintaining artificially high fares.
Travel chaos at Heathrow - in pictures
Aston martin DBX specs
Engine: 4.0-litre twin-turbo V8
Transmission: nine-speed automatic
Power: 542bhp
Torque: 700Nm
Top speed: 291kph
Price: Dh848,000
On sale: Q2, 2020
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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.”
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Rebel%20Moon%20-%20Part%20One%3A%20A%20Child%20of%20Fire
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EZack%20Snyder%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESofia%20Boutella%2C%20Djimon%20Hounsou%2C%20Ed%20Skrein%2C%20Michiel%20Huisman%2C%20Charlie%20Hunnam%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A