London City Airport said it will be one of the first airports in the UK to offer CT scanners. EPA
London City Airport said it will be one of the first airports in the UK to offer CT scanners. EPA
London City Airport said it will be one of the first airports in the UK to offer CT scanners. EPA
London City Airport said it will be one of the first airports in the UK to offer CT scanners. EPA

London City Airport to lead UK charge on overturning liquid limits


Simon Rushton
  • English
  • Arabic

Passengers flying through London City Airport could see liquid limits scrapped from as early as April next year.

The east London airport is trialling a security lane equipped with next-generation computerised tomography (CT) baggage scanners.

It plans to introduce the machines, similar to those used in hospitals, on all its lanes by April, before a planned UK-wide roll-out for the summer of 2024, the airport said on Friday.

London city said it will be one of the first airports in the UK to offer CT scanners, which would also mean laptops no longer need to be take out for separate examination.

The restrictions were brought in after a foiled plot in August 2006 to bring down up to 10 passenger planes using explosives disguised as soft drinks.

Since then, passengers have been required to restrict liquids in bags carried on board flights to containers of no more than 100ml, which must be stored in clear plastic bags, amid security concerns. Laptops must also be removed for inspection.

London City is popular with business travellers for its short boarding times and proximity to both the City and Canary Wharf financial centres.

It was named as the airport with the quickest security queues, in a survey carried out by Which? consumer group.

Large UK airports are planning to install and begin using the CT scanners by mid-2024.

Heathrow chief executive John Holland-Kaye said the airport was slowly rolling out the scanners.

“We have just started the expansion of the security area in Terminal 3 which will have more CT scanners and have a deadline of mid-2024 from the [Department for Transport]. By then, the normal passenger experience will be that liquids stay in bags,” he said.

A UK trial of the technology was announced in 2019, but was delayed when the Covid pandemic shut down most international travel.

Figures from the International Air Transport Association for September showed passenger traffic levels have only reached 73 per cent of pre-Covid levels.

The UK is not the first country to introduce the new technology.

Airports including Amsterdam Schiphol and Helsinki, as well as several in the US, have CT baggage scanners that generate a 3D image that can be viewed and rotated on three axes. The technology is already in use at Shannon airport in Ireland.

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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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What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: November 25, 2022, 6:02 PM