Between the Arab Spring to the euro-zone debt crisis, airlines were buffeted by economic turbulence in 2011.
Transport Plane-makers
Airbus Airbus beat Boeing to report its highest number of aircraft orders yet last year. The company's orders increased after it announced plans to offer an updated version of its A320 narrow-body airplane.
Boeing The US aircraft giant aims to capture more business this year with sales of its latest version of the narrow-body 737. Securing the first landmark order from Southwest Airlines in the US last month for 150 737 MAX aircraft, Boeing hopes to sell up to 1,400 jets this year.
The Rest Bombardier, Comac, Embraer and Irkut are among manufacturers vying to capture market share from Airbus and Boeing. The smaller aircraft makers are already starting to secure a bigger slice of deals for narrow-body aircraft.
This year, the headwinds could be just as strong, with the global economy slowing as uncertainty in the euro zone squeezes profits for carriers.
A new EU emissions trading scheme (ETS) is also expected to nearly triple the cost to the industry of securing carbon permits to €2.8 billion (Dh13.36bn) by 2020.
Completing a triple whammy of risks for carriers is the likelihood of further volatility in fuel prices. Airlines already had to contend with a 13 per cent rise in oil prices last year as unrest hit parts of the Middle East and North Africa.
"Our bottom line for 2012 will be for an uncertain and challenging year once again for airlines and associated industries," says Peter Harbison, the executive chairman of the Centre for Asia Pacific Aviation (Capa). "Many of the directions will be driven by events in Europe."
The International Air Transport Association (Iata) has already cut its forecast for global airline profit for this year from US$4.9bn (Dh17.99bn) to $3.5bn. Middle Eastern airlines are expected to post a profit of $300 million, down from a previous forecast of $700m.
It is against such an uncertain backdrop that the industry is increasingly recognising the importance of flying the most fuel-efficient aircraft.
With more than 100 new passenger jets set to be delivered to Middle Eastern carriers this year and next, the region is at the forefront of the race to modernise fleets.
At a time when many of their competitors are either stagnating or seeking consolidation, the extra capacity should help regional airlines capture market share, aviation analysts say.
And by operating the most fuel-efficient, modern and comfortable aircraft, they should also bolster their efforts to save money and attract passengers.
The fleets of the region's biggest carriers - Etihad Airways, Emirates Airline and Qatar Airways - are younger than most of the fuel-guzzling planes of the US, European and Asian carriers.
Pressure to update fleets is likely to intensify in the coming years.
The introduction this year of the ETS threatens to bruise an industry that survives on wafer-thin profit margins during good years. All airlines operating in the EU will have to account for their carbon dioxide emissions by purchasing carbon permits.
Carriers have reacted with hostility to the scheme, arguing it further hampers an industry already struggling with high fuel bills and tough competition. Some industry commentators have warned that the plan risks a trade war in the sector.
On Monday, the German carrier Lufthansa became the first airline to explain how it plans to deal with the scheme. It said it would pass on to its customers an anticipated €130m of costs to pay for the permits this year.
"With the EU giving airlines a big quota for emissions already, further growth, particularly by expanding Middle East carriers, will see financial expenditure increase," says Saj Ahmad, the chief analyst at StrategicAero Research. "Whether this is passed on to the consumer remains to be seen, especially when GCC airlines have been very reticent about [imposing] fuel surcharge fees already."
Such schemes are likely to give greater urgency to moves by Boeing and Airbus to equip existing planes with new engines to help reduce operating costs, say analysts.
Over recent years, regional carriers have led the shift towards fuel-efficient jets such as the Boeing 777 and 787 Dreamliner, and Airbus's A380 superjumbo and the A350.
Last year, Emirates Airline accounted for a quarter of all 777 orders. But eyes will be trained most keenly this year on Qatar Airways, which in June is to receive the region's first Dreamliner.
Hailed as a game-changer in commercial aviation, the aircraft is already the fastest-selling twin-aisle passenger jet in history. It has been much anticipated because its more efficient engines will enable airlines to cut their carbon emissions while burning 20 per cent less fuel than other similar-sized aircraft.
After several years of delays during its manufacture, the Dreamliner finally entered service last year with Japan's All Nippon Airways.
In a sign that Etihad wants to make the aircraft a main plank of its long-haul fleet, the Abu Dhabi carrier last month said it would buy 10 787-9s in a deal that will make it the largest operator of the "stretch" version of the aircraft.
Etihad also has options and purchase rights on a further 25 Dreamliners. It is due to take delivery of 41 of the 787s between 2014 and 2019.
In all, the region accounts for 15 per cent of Boeing's entire order backlog for the aircraft.
The US manufacturer says the lightweight aircraft is more comfortable for passengers because it offers larger windows with an adjustable tint, an improved air filtration system and a quieter cabin.
Airbus hopes to lure business away from Boeing and the 787 with its own more fuel-efficient wide-body aircraft.
When the delayed A350 finally enters service in 2014, Airbus says the aircraft will be better than the 787. The lighter airframe and carbon-fibre reinforced fuselage results in lower fuel consumption and should be easier to maintain.
With 80 aircraft on order, Qatar Airways is the biggest customer for the A350 and is also the first airline scheduled to take delivery of the plane. It is also first in the queue for a revamped version of Airbus's A320, a narrow-body jet.
In November, it ordered 50 A320neo jets, which burn 15 per cent less fuel than the previous model of the A320. The aircraft proved so popular globally that it helped the European manufacturer win the race for total orders last year against Boeing.
The US company hopes to fight back with an overhaul of its own narrow-body, the 737 MAX. Mr Ahmad expects flydubai to be among the first regional customers for the 737 MAX next year as it adds to its fleet of 737s. One important uncertainty hanging over the industry this year will be how easy it is for airlines to secure financing for new passenger jets.
Between $85bn and $90bn of total funding will be required this year for new commercial aircraft deliveries, up about 20 per cent from last year, estimates Fitch Ratings.
Some airlines have already complained about a reluctance of European banks to provide financing as the euro-zone crisis deepens.
But Fitch does not expect a recent tightening of aircraft lending conditions in Europe to put the brakes on new aircraft deliveries.
"A well-functioning and globally diversified aircraft financing market will remain critical as airlines continue to face heavy capital commitments," the credit agency said in a report last month.
Whatever other challenges lie ahead for airlines this year, the need to update their fleets is likely to remain a priority.
tarnold@thenational.ae
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Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
ALL THE RESULTS
Bantamweight
Siyovush Gulmomdov (TJK) bt Rey Nacionales (PHI) by decision.
Lightweight
Alexandru Chitoran (ROU) bt Hussein Fakhir Abed (SYR) by submission.
Catch 74kg
Omar Hussein (JOR) bt Tohir Zhuraev (TJK) by decision.
Strawweight (Female)
Seo Ye-dam (KOR) bt Weronika Zygmunt (POL) by decision.
Featherweight
Kaan Ofli (TUR) bt Walid Laidi (ALG) by TKO.
Lightweight
Abdulla Al Bousheiri (KUW) bt Leandro Martins (BRA) by TKO.
Welterweight
Ahmad Labban (LEB) bt Sofiane Benchohra (ALG) by TKO.
Bantamweight
Jaures Dea (CAM) v Nawras Abzakh (JOR) no contest.
Lightweight
Mohammed Yahya (UAE) bt Glen Ranillo (PHI) by TKO round 1.
Lightweight
Alan Omer (GER) bt Aidan Aguilera (AUS) by TKO round 1.
Welterweight
Mounir Lazzez (TUN) bt Sasha Palatkinov (HKG) by TKO round 1.
Featherweight title bout
Romando Dy (PHI) v Lee Do-gyeom (KOR) by KO round 1.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
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The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
RESULT
Uruguay 3 Russia 0
Uruguay: Suárez (10'), Cheryshev (23' og), Cavani (90')
Russia: Smolnikov (Red card: 36')
Man of the match: Diego Godin (Uruguay)
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
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