Debris found on August 11, 2015 in the eastern part of Sainte-Suzanne, on France's Reunion Island in the Indian Ocean following the disappearance of  MH370. Richard Bouhet/AFP
Debris found on August 11, 2015 in the eastern part of Sainte-Suzanne, on France's Reunion Island in the Indian Ocean following the disappearance of MH370. Richard Bouhet/AFP

Vanishing jetliners still possible four years after Malaysia flight 370



The disappearance of Malaysia Airlines Flight 370  that disappeared on 8 March 2014 while flying from Kuala Lumpur International Airport, Malaysia, to its destination, Beijing Capital International Airport in China, prompted a slew of safety proposals meant to prevent another jetliner from inexplicably vanishing.

Yet, almost four years later, that possibility remains.

That's because international requirements for new planes to broadcast their locations every minute when they're in trouble do not take effect until January 2021, according to Bloomberg. The disappearance of Flight 370 remains the biggest mystery in modern aviation and the search to find it is the world’s longest hunt for any jet.

Last month, a new crew resumed aboard the Seabed Constructor scouring the Indian Ocean. The top Australian scientist who helped pinpoint the new search zone is hopeful the missing jet can be found within weeks.

Armed with oceanographic analyses and a high-tech search vessel, the latest search for the Boeing 777, which vanished in March 2014 carrying 239 people, kicked off late last month run by the private exploration firm Ocean Infinity, in the hope of solving one of aviation's most enduring mysteries, AFP reported. The US company resumed searching with a promise of as much as $70 million from the Malaysian government if successful.

Hopes that the new mission might finally find the wreckage have also been raised by the high-tech tools being used.

Seabed Constructor carries eight autonomous drones equipped with sonar and cameras that can operate in depths of up to 6,000 metres.

They are "free flying" vehicles, allowing them to move deeper and collect higher quality data than the tethered drones used in the earlier search. This means the priority search areas are likely to be scoured and the data collected much faster.

In an era where people can track their iPhones and Samsung Galaxy devices in real time, the aviation industry, the world's most-advanced transportation sector, still isn't obligated to do the same for aircraft carrying about 4 billion passengers a year. And that one-minute rule doesn’t apply to the current fleet of 23,500 passenger planes and the thousands more joining them in the next three years  - mostly in Asia, Bloomberg said.

“You can’t say MH370 won’t ever happen again, because it will,” said David Stupples, a professor of electronic and radio systems at City, University of London.

“Until 2040 or 2050, there’s going to be a large number of aircraft flying around that don’t have that tracking system fitted.”

A gradual tightening starts in November, when airlines must track planes every 15 minutes under regulations adopted by the United Nations International Civil Aviation Organisation (ICAO). Some carriers already meeting this requirement include Malaysia Airlines, Singapore Airlines and Qantas Airways.

Still, a jet cruising at 500 knots (925kph) an hour that disappears between 15-minute pings creates a potential search zone of about 170,000 square kilometres. That's equivalent to about twice the size of the UAE.

There would be little chance of finding survivors in time, especially in the open ocean, and the sunken wreckage might escape detection for years, said Geoffrey Dell, a safety scientist at Central Queensland University in Australia who has been an air-safety investigator since 1979.

By comparison, the search zone for a plane that crashed between one-minute pings would be about 748 sq km - an area 227 times smaller.

“The industry takes strategic steps to ensure safety but moves very deliberately,” said Tom Schmutz, the chief executive of Flyht Aerospace Solutions. “Operators have typically pushed back on change because it can conflict with operational profits.”

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Calgary-based Flyht sells off-the-shelf technology that tracks planes by satellite. Its Automated Flight Information Reporting System is about the size of a briefcase, costs less than $60,000 and can pinpoint a plane's airborne location every 20 seconds.

About 1,800 aircraft have installed the product, Mr Schmutz said.

The slow rollout of more-frequent tracking comes during a period of sustained growth for the global aviation industry, especially in Asia.

MH370 disappeared with 239 people on board. Experts mapped the Boeing 777's random route over the Indian Ocean after picking through its hourly data hook-ups with a satellite.

Only a few pieces of wreckage washed up in Africa, and no bodies were recovered.

ICAO said it “moved quite rapidly” to develop new tracking intervals after the MH370 crash, and those rules contain an incentive for airlines to retrofit in-service craft to enable one-minute reporting.

Under the rules taking effect in 2021, a plane would switch to one-minute tracking automatically when systems detected it was in distress because of turbulence, mechanical difficulties or an unexplained change in course, such as during a hijacking or if the crew became unconscious.

Pilots couldn't turn the system off after it activates automatically, ICAO said. The system would deactivate itself once the plane was flying safely again.

However, a pilot could turn off the system if it was manually activated.

The challenges tied to minute-by-minute tracking include adding computing power and internet bandwidth to process larger volumes of data. The tighter system also may require reserving more space on the flurry of satellites being launched to satisfy demands for constant internet connectivity.

The almost seven-year lag that will exist between the disappearance of MH370 and the institution of one-minute tracking shows the struggle going on within the industry.

Airlines haven’t immediately rolled out tamper-proof tracking technology on every commercial aircraft - potentially at a cost of more than $1 billion - partly because an event like MH370 is so rare.

“It always comes back to a commercial decision,” said Mr Dell, a former safety manager at Qantas.

“Does it really justify it when that accident is not going to happen in your lifetime - statistically? It takes something like MH370 to change people’s thinking.”

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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.”