Flydubai has cancelled the launch of routes planned for the second half of this year and reduced capacity on some others because of jet delivery delays at Boeing and supply chain problems, its chief executive has said.
The Dubai-based airline also temporarily suspended its flight schedule to Pisa in Italy from October to March 2025 to mitigate the impact on busy travel periods.
Flydubai cancelled its routes to Riga in Latvia, Tallinn in Estonia and Vilnius in Lithuania that were scheduled to start in October, despite a solid performance in the first six months of the year, chief executive Ghaith Al Ghaith told The National on Monday.
Unfortunately, there will be no further route launches this year
Ghaith Al Ghaith,
chief executive, Flydubai
The all-Boeing fleet operator said in July that its growth plans have been "stunted" after it received an update from the US manufacturer that it would not receive any more planes this year, creating a capacity shortage during a period of strong demand.
The airline then had to examine the knock-on effect on its new routes and flight frequencies on existing destinations as a result, Mr Al Ghaith said at the time.
"Flydubai had another strong performance for the first half of 2024, and we have seen very strong demand for travel this summer as well. We are pleased to see a successful start of operations to our newest destination in Europe, with the launch of direct flights to Basel earlier this month. Unfortunately, there will be no further route launches this year," Mr Al Ghaith said on Monday.
"The airline had recently revised its flight schedule due to ongoing delays in aircraft delivery schedules and supply chain disruptions. To mitigate the impact during the busy travel periods, we have cancelled our upcoming route launches in the Baltic that were planned for October."
In December, Boeing told flydubai that it will deliver 12 planes in 2024. That included four that were delayed from 2023.
In March, the airline was informed it will receive only eight of the 12 planes.
In July, Boeing told flydubai that it will not receive any additional aircraft beyond the four already delivered this year.
"We are doing everything we can to reduce the impact of the schedule changes on our customers without having to resort back to wet leasing additional aircraft. This remains an option to explore for the future if we have to," Mr Al Ghaith said.
"In line with these developments, we are in touch with our customers and travel partners regarding their refund or rebooking options."
Flydubai advised customers whose flights have been affected to visit its website or call the flydubai contact centre, the flydubai travel store or their travel agent.
"We apologise for the inconvenience caused to our customers’ travel schedules," Mr Al Ghaith said.
The flydubai chief joins a growing chorus of aviation leaders expressing frustrations about continuing aircraft delays. This comes as Boeing struggles with a safety and quality crisis, which was caused by a panel falling off a 737 Max jet in mid-air in January. Its rival Airbus is also struggling to reach production output goals.
Etihad Airways' chief executive Antonoaldo Neves this month said that when he meets Boeing's new chief executive Kelly Ortberg “sooner or later”, he will have one main request for the new leader of the company.
“When I meet him and I ask him one thing, it's going to be: 'please deliver my planes on time'”, Mr Neves said in an interview this month.
Mr Ortberg has pledged to “restore trust” in the embattled US aerospace company when he officially took charge on August 8.
Delays in delivering planes have hobbled global airlines' efforts to fully capitalise on the post-pandemic surge in air travel demand.
In July, Boeing's chief of commercial jets Stephanie Pope said the company had disappointed its customers but it was making transformational and systemic changes based on feedback from its employees, airlines and regulators.
England v South Africa schedule:
- First Test: At Lord's, England won by 219 runs
- Second Test: July 14-18, Trent Bridge, Nottingham, 2pm
- Third Test: The Oval, London, July 27-31, 2pm
- Fourth Test: Old Trafford, Manchester, August 4-8
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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.
BUNDESLIGA FIXTURES
Friday (All UAE kick-off times)
Borussia Dortmund v Eintracht Frankfurt (11.30pm)
Saturday
Union Berlin v Bayer Leverkusen (6.30pm)
FA Augsburg v SC Freiburg (6.30pm)
RB Leipzig v Werder Bremen (6.30pm)
SC Paderborn v Hertha Berlin (6.30pm)
Hoffenheim v Wolfsburg (6.30pm)
Fortuna Dusseldorf v Borussia Monchengladbach (9.30pm)
Sunday
Cologne v Bayern Munich (6.30pm)
Mainz v FC Schalke (9pm)
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
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Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
