WADI Al ZOLOMAT, Egypt, // The Russian plane that crashed in Egypt, killing all 224 people on board, broke up “in the air” an expert said on Sunday as investigators scrutinised evidence.
ISIL claimed responsibility for the incident, but Egyptian president Abdel Fattah El Sissi urged patience while the facts, and truth of what happened, were determined.
The A-321 plane went down in Egypt’s Sinai Peninsula.
“The disintegration happened in the air and the fragments are strewn over a large area,” said Viktor Sorochenko, a senior official with Russia’s interstate aviation committee.
Mr Sorochenko, who is heading an international panel of experts, said it was “too early to draw conclusions” about what caused the Sharm El Sheikh to Saint Petersburg flight to go down.
Russian officials said they needed to comb through an area of about 16 square kilometres in the Sinai Peninsula.
Investigators have recovered the plane’s black box flight recorder, and the Egyptian government said the contents were being analysed.
“In such cases, leave it to specialists to determine the cause of the plane crash because it is a subject of an extensive and complicated technical study,” Mr El Sisi said.
The crash site in the Wadi Al Zolomat area of North Sinai was littered with blackened parts of the plane and the smell of burnt metal lingered in the air.
There were no bodies visible at the site but a tiny red jacket, probably of a child, lay close to where soldiers were guarding baggage belonging to those on flight KGL 9268. There were 17 children on board.
On Sunday, rescue crews had recovered 168 bodies, including that of a girl found 8 kilometres from the main wreckage.
Flags flew at half mast in Russia on Sunday and entertainment programmes on television were cancelled as part of a national day of mourning. Most of the victims were Russian, ranging in age from 10 months to 77 years.
There were 214 Russian and three Ukranian passengers on board and seven crew members.
Cairo and Moscow have downplayed the claim from ISIL’s branch in Egypt that it brought down the aircraft flown by Kogalymavia airline, operating under the name Metrojet.
Egyptian prime minister Sharif Ismail confirmed that experts said ISIL could not down a plane at 9,000 metres altitude, at which the Airbus 321 was flying, while Russian transport minister Maxim Sokolov said the claim “cannot be considered accurate”.
Experts said the cause of the disaster could have been a number of things.
They said a surface-to-air missile could have struck the aircraft if it had been descending, a bomb on board could not yet be ruled out, or the cause being technical or human error.
Kogalymavia on Sunday defended pilot Valery Nemov, saying he had more than 12,000 hours of flying experience, including 3,860 hours on an Airbus A321.
Two air accident investigators from France – Airbus’s home country – and six experts from the aerospace company will take part in the official investigation.
What is known, is that the plane lost contact with air traffic control 23 minutes after take-off.
An Egyptian air traffic control official said the pilot told him in their last exchange that he had radio trouble, but civil aviation minister Mohamed Hossam Kamal said communications had been “normal”.
“There was nothing abnormal and the pilot didn’t ask to change the plane’s route,” he said.
A Russian team including Mr Sokolov and emergency minister Vladimir Puchkov visited the crash scene, in a remote part of the Sinai, on Sunday.
Russia has a dismal air safety record and while larger carriers have started to upgrade their ageing fleets the crash is likely to raise concerns about smaller airlines such as Kogalymavia.
Yesterday, the Russian transportation watchdog, Rostransnadzor, ordered Kogalymavia to perform a full check on their A-321 planes.
Kogalymavia confirmed the instructions but denied this amounted to a de-facto grounding of the company’s remaining six A321s.
Emirates, Lufthansa and Air France have halted flights over Sinai until the reasons behind the crash are clarified.
The last major air crash in Egypt was in 2004, when a Flash Airlines Boeing 737 plunged into the Red Sea after taking off from Sharm El Sheikh. All 148 people on board were killed.
* Agence France-Presse
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
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Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
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.”
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
Key features of new policy
Pupils to learn coding and other vocational skills from Grade 6
Exams to test critical thinking and application of knowledge
A new National Assessment Centre, PARAKH (Performance, Assessment, Review and Analysis for Holistic Development) will form the standard for schools
Schools to implement online system to encouraging transparency and accountability