Etihad incident prompts engine fix



An Etihad flight incident in May, in which the European safety regulator says an engine temporarily "stagnated", has spurred modifications to some Airbus aircraft to prevent the build up of ice. Airbus A330s and A340s using Rolls-Royce engines must replace oil-cooler devices with a newer design that is less susceptible to ice build-up during long-haul flights, particularly over water or polar regions, the European Aviation Safety Agency (EASA) said last week.

Earlier, the European and US safety regulators issued similar directives for Boeing aircraft which use Rolls-Royce engines following incidents involving flights by British Airways and Delta Air Lines. Etihad's Flight 313 in May was approaching Manchester Airport when air traffic control requested a go-around due to a runway being obstructed by a vehicle. "Both engines initially responded correctly; however, after the initial acceleration engine number one stagnated and the corresponding engine stall warning was displayed in the cockpit," the EASA said in its report. Etihad pilots acted appropriately to the engine stall, responding immediately to regain control of the aircraft, it said. "As per procedure, the crew throttled back the engine, which recovered."

An Etihad spokeswoman said the incident culminated in a "rapid recovery and safe, uneventful landing", and added that "along with other affected airlines, we are making the minor modifications required over the next six months". "We report all such events as a matter of course to the relevant authorities and manufacturers," she said.  After investigating the Etihad incident, EASA said ice blocking was a possible cause of the incident.

Airlines have until January 2011 to make all the required fixes. The long lead time indicates that ice build-up is extremely rare, the trade press has reported. There have been two other recent incidents of ice build-up within fuel systems, both involving Boeing 777 aircraft. In November last year, a Delta Air Lines flight from Shanghai to Atlanta suffered an "uncommanded rollback", or loss of thrust, in one engine while the aircraft was in cruising mode. The problem was cleared after pilots took measures including descending to 31,000 feet. The cause of the rollback has not been determined.

In January of last year, a British Airways flight crashed as it approached Heathrow Airport in London. The Air Accidents Investigation Branch of the UK determined that "an uncommanded reduction in thrust occurred on both engines as a result of reduced fuel flows". No one was killed in the crash. The investigation revealed that, "under certain conditions, over a long period of low fuel temperatures, ice may accumulate in the main tanks and/or in the associated engine fuel feed systems".

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How it works

1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground

2) Instead of water draining straight through the sand, it apparently helps the soil retain water

3) One application is said to last five years

4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare 

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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Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

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