Late arrival: The news that Emirates would have to wait an extra month for its second A380 tempered the optimism at the company.
Late arrival: The news that Emirates would have to wait an extra month for its second A380 tempered the optimism at the company.

Production delays hit airlines



ABU DHABI // A fresh round of uncertainties is headed towards the region's big three carriers - Emirates, Etihad Airways and Qatar Airways - as new production delays surface at the world's biggest aircraft manufacturers, Airbus and Boeing. This month's optimism at Emirates, after receiving its first superjumbo A380 from Airbus, plus two new Boeing long haul 777s, has been tempered by news that the second A380 will not be delivered in September, as expected.

Instead the second double-decker aircraft may not join the Emirates fleet until Oct 20, trade magazines have reported, making for a delay of nearly two months. Emirates had planned on having the second A380 join its first delivery on the non-stop Dubai to New York's JFK route - which would have created the first daily A380 service to the US. "The delivery of our second A380 aircraft will be pushed back by a few weeks. Discussions are underway with Airbus regarding the delivery date," the airline said.

The situation has been attributed to delays from Airbus suppliers in delivering interior outfitting. They add to a long list of challenges at Airbus in living up to its aggressive delivery schedule of the A380. The company had intended to make up for lost ground after its earlier 22-month production delay. Airbus maintains it will still be able to deliver another seven A380s to customers before the end of this year.

Gulf airlines spent the better part of the past two years waiting for production delays at Boeing and Airbus to resolve themselves. With wide-bodied aircraft in tight supply, the airlines had no other option but to scale back their plans to expand and win market share over the established long haul airlines in Asia and Europe. Emirates has ordered 58 A380s, the most of any airline, and expects to receive its first five by March next year.

The other top Gulf long-haul carriers, which also use their Middle East hubs to serve traffic between eastern and western destinations such as the popular Europe to Australia route, are also customers of the US$300 million (Dh1.1billion) A380, the largest commercial aircraft in the world. Qatar expects to receive its five A380s starting in 2011 after a two-year delay, while Etihad is scheduled to begin flying the first of its 10 A380s in 2013.

The Gulf's big three carriers have also placed billions of dollars of orders with Boeing, particularly its long-range 777 and 787 Dreamliner models. But a companywide strike affecting all production lines looms if its 28,000-strong union of machinists rejects management's latest contract offer. Union members are scheduled to vote on Wednesday. If the strike resolution passes with a two-thirds vote then a strike will begin that night, leading to a shutdown at the company's jet-assembly plants in Washington state. The last time a strike occurred, in 2005, Boeing was forced to halt commercial aeroplane production for four weeks.

Emirates, which has 39 additional 777s worth $10bn on order and expects to receive at least one a month for the foreseeable future, could be affected by a Boeing labour strike. However, a spokesman said Boeing had not officially informed the airline of any potential delivery disruptions. Such notification is required if a delay appears certain. Qatar Airways had been looking forward to becoming the first Gulf airline to receive the much-vaunted midsized 787 Dreamliner, the fastest-selling aircraft ever. That production line has also suffered from a two-year delay, and could be pushed back further if Boeing's union follows through with its strike plans.

Etihad would be less affected by disruptions at Boeing, as its 787 orders would not be delivered until 2015. But a strike could push back deliveries of the 777s it expects to arrive beginning in 2011. igale@thenational.ae

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

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Dr Afridi's warning signs of digital addiction

Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association

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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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Results

2pm: Handicap Dh 90,000 1,800m; Winner: Majestic Thunder, Tadhg O’Shea (jockey), Satish Seemar (trainer).

2.30pm: Handicap Dh120,000 1,950m; Winner: Just A Penny, Sam Hitchcott, Doug Watson.

3pm: Handicap Dh105,000 1,600m; Winner: Native Appeal, Pat Dobbs, Doug Watson.

3.30pm: Jebel Ali Classic Conditions Dh300,000 1,400m; Winner: Thegreatcollection, Adrie de Vries, Doug Watson.

4pm: Maiden Dh75,000 1,600m; Winner: Oktalgano, Xavier Ziani, Salem bin Ghadayer.

4.30pm: Conditions Dh250,000 1,400m; Winner: Madame Ellingtina, Richard Mullen, Satish Seemar.

5pm: Maiden Dh75,000 1,600m; Winner: Mystery Land, Fabrice Veron, Helal Al Alawi.

5.30pm: Handicap Dh85,000 1,000m; Winner: Shanaghai City, Jesus Rosales, Rashed Bouresly.

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
'Laal Kaptaan'

Director: Navdeep Singh

Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain

Rating: 2/5

COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
MATCH INFO

League Cup, last 16

Manchester City v Southampton, Tuesday, 11.45pm (UAE)

DMZ facts
  • The DMZ was created as a buffer after the 1950-53 Korean War.
  • It runs 248 kilometers across the Korean Peninsula and is 4km wide.
  • The zone is jointly overseen by the US-led United Nations Command and North Korea.
  • It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
  • Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
  • Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
  • Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012. 
  • Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
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Power: 325bhp
Torque: 370Nm
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Price: Dh230,000
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