Airlines have been warned to be extra cautious in light of possible US-led military action in the eastern Mediterranean in the next 72 hours. Ted Aljibe / AFP Photo
Airlines have been warned to be extra cautious in light of possible US-led military action in the eastern Mediterranean in the next 72 hours. Ted Aljibe / AFP Photo

Airlines warned that Syria strikes could cause disruption



Airlines have been warned to exercise caution in the eastern Mediterranean due to the possible launch of air strikes into Syria in the next 72 hours.

The civil aviation advisory notice came as US President Donald Trump and western allies discussed military options to punish Syria's President Bashar Al Assad for a suspected poison gas attack on Saturday on a rebel-held town near Damascus that long had held out against government forces.

The pan-European air traffic control agency Eurocontrol said air-to-ground and cruise missiles could be used, and there was a possibility of intermittent disruption of radio navigation equipment.

Mr Trump on Tuesday cancelled a planned trip to Latin America later this week to focus instead on responding to the Syria crisis, the White House said. Mr Trump had on Monday warned of a quick, forceful response once responsibility for the Syria attack was established.

"Due to the possible launch of air strikes into Syria with air-to-ground and/or cruise missiles within the next 72 hours, and the possibility of intermittent disruption of radio navigation equipment, due consideration needs to be taken when planning flight operations in the Eastern Mediterranean/Nicosia FIR area," Eurocontrol said, referring to the designated airspace.

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US prepares the ground for possible military action in Syria

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Aviation regulators in countries including the United States, United Kingdom, France and Germany have previously issued warnings against airlines entering Syrian airspace leading most carriers to avoid the area.

The only commercial flights above Syria as of 1.15am GMT on Wednesday were being flown by Syrian Air and Lebanon's Middle East Airlines, according to flight tracking website FlightRadar24.

The Eurocontrol statement included a broader area outside the airspace controlled by Damascus.

The Nicosia flight information region named in the Eurocontrol statement on Tuesday covers Cyprus and surrounding waters, according to a map on the agency's website. The same map did not designate any specific territory as being the "Eastern Mediterranean" region.

There has been heightened awareness by regulators and airlines of the risks that conflict zones pose to commercial jets since Malaysia Airlines flight MH17 was shot down by a surface-to-air missile over Ukraine in 2014, killing all 298 people on board.

Last year, North Korea tested missiles without warning, leading some airlines to re-route flights to avoid portions of the Sea of Japan.

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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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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013