Airbus, the European plane manufacturer, will stop making its A380 superjumbo if it fails to strike a long-term deal with Emirates, the largest operator of the aircraft, which would guarantee a steady order over a decade.
“Quite honestly…if we can’t work out a deal with Emirates, there is no choice but to shut down the programme,” Airbus’ outgoing chief salesman John Leahy told reporters via web cast on Monday.
Emirates are “probably the only ones in the marketplace with the ability” to commit to a minimum of six planes a year for 8-10 years – which is what Airbus needs to make the programme viable, he said.
“But I’m hopeful we can work out a deal with Emirates and then other airlines can add on top,” Mr Leahy added.
Emirates is the largest operator of A380s globally with 100 A380s in operation and 42 more on order. The airline was expected to sign a preliminary order at the Dubai Air Show in November for as many as 36 A380s, but the deal never materialised.
The airline has been pressing Airbus to commit to the future of the double-decker aircraft by guaranteeing a 10-year production line before it will place another order. Emirates has urged Airbus to market the aircraft more widely across the world to ensure future production of the jet. The Toulouse-based manufacturer hasn't sold an A380 in over two years and the aircraft lacks a secondary market.
Last week, Airbus officials were in China on a trade visit and were said to be tapping China as a potential buyer of A380s. The Toulouse-based manufacturer was offering China a production role on the A380 if Chinese airlines order the jet, the Financial Times reported.
On Monday, Airbus’ outgoing chief operating officer, Fabrice Brégier, said “there are clearly other potential customers beyond Emirates”.
Dubai’s flag carrier is still “key for the long-term future of [the A380] programme” and talks with the airline are ongoing, Mr Brégier said.
Airbus sold 1,109 planes last year, 52 per cent higher than 2016, outstripping rival Boeing thanks to a raft of end-of-year deals, including a US$50 billion order for 430 A320neos from US private equity firm Indigo Partners.
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Read more:
Airbus to ditch A380 if new Emirates order falls through
Airbus eyes sale of at least 100 jets to China
Exclusive: Emirates still in discussions with Airbus on buying 'flying palace', Sheikh Ahmed says
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Airbus has held an order lead over Boeing since 2012, helped by Mr Leahy, who is set to retire in the coming weeks and be replaced by Eric Schulz, the former head of aerospace at engine maker Rolls-Royce Holdings.
In its sales update on Monday, Airbus said total deliveries reached 718 aircraft in 2017 – four percent higher than the previous record of 688 in 2016.
“A new Airbus delivery record coupled with our fifth best order intake wraps up a remarkable year for us…and makes the company fitter, stronger and ready for the opportunities ahead,” Mr Brégier said.
Deliveries were dominated by the single-aisle A320, with a total of 558 in 2017 as Airbus moves toward production of 60 planes a month across its assembly lines.
The company also handed over 78 of its newest wide-body A350, while production of the A380 fell to just 15 planes.
Airbus sees “great potential” for the Middle East aviation market in 2018, Mr Leahy told reporters.
“It’s a strong market and it’s recovering. It’s no secret that oil prices are moving back up again – Brent is very close to $70 a barrel and looks to be inching up from there, and the economies tend to be on the mend.
“[Regional] airlines are doing better as they are around the world and we see great potential for the region,” he said.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
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 of Tarabut Gateway
Founder: Abdulla Almoayed
Based: UAE
Founded: 2017
Number of employees: 35
Sector: FinTech
Raised: $13 million
Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Punchy appearance
Roars of support buoyed Mr Johnson in an extremely confident and combative appearance
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
WHAT%20IS%20THE%20LICENSING%20PROCESS%20FOR%20VARA%3F
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Our Time Has Come
Alyssa Ayres, Oxford University Press
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
2019 ASIA CUP POTS
Pot 1
UAE, Iran, Australia, Japan, South Korea, Saudi Arabia
Pot 2
China, Syria, Uzbekistan, Iraq, Qatar, Thailand
Pot 3
Kyrgyzstan, Lebanon, Palestine, Oman, India, Vietnam
Pot 4
North Korea, Philippines, Bahrain, Jordan, Yemen, Turkmenistan
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
