Saudi airline Flyadeal’s decision on Boeing MAX “imminent”: CEO

Flyadeal is owned by the Saudi government through state carrier Saudia, and started operations in 2017. (AFP/File)
Updated 28 April 2019

Saudi airline Flyadeal’s decision on Boeing MAX “imminent”: CEO

  • The airline is reconsidering the purchase after the Ethiopia plane crash
  • The deal between Flyadeal and Boeing was worth $5.9m

DUBAI: Saudi Arabian budget airline Flyadeal's decision on whether it goes ahead with an order for 30 Boeing 737 MAX jets is “imminent,” its chief executive said on Sunday.
The airline is reconsidering the order after two MAX jets fatally crashed in Ethiopia in March and in Indonesia in October.
“We’ve kept an open position in terms of which way we will go on fleet given the situation with the MAX,” Con Korfiatis told Reuters at the Arabian Travel Market exhibition in Dubai.
“At the moment we still don’t have a decision but it is imminent.”
Flyadeal has ordered 30 Boeing 737 MAX 8s with purchasing options for 20 more in a deal Boeing said was worth $5.9 billion at list prices.
The airline, owned by the Saudi Arabian government through state carrier Saudia, has not finalized contractual terms and would be able to cancel the order if it wants to do so.
“It was effectively on the basis of an MoU (memorandum of understanding) subject to final agreements. We haven’t signed final contracts,” Korfiatis said in an interview.
Flyadeal would order the Airbus A320neo, a comparative narrow-body jet it had considered when selecting the MAX, if it cancels the Boeing deal, he said.
Switching the order would not significantly affect the airline’s expansion plans because due to a production backlog, it would have to wait several years to receive the new Boeing jets.
Flyadeal, which operates 11 older, leased A320ceo aircraft, had planned to lease aircraft as it waited for the new planes.
The airline, which started flights in 2017, expects to have a fleet of around 50 leased and ordered aircraft by 2025, Korfiatis said.
The MAX is currently banned from flying in most countries after a total of 346 died in the Ethiopian Airlines and Lion Air crashes.
Boeing is developing a software fix and new pilot training for regulatory approval in order to get the company’s best-selling plane recertified.
The additional training that Boeing is developing would be “relatively incremental” to what was already required, Korfiatis said, meaning associated costs are unlikely to be significantly more.
Korfiatis praised Boeing’s communications with customers since the March crash that grounded the plane.
“Obviously this a significant issue for them and they are managing it very professionally.”


A homegrown UAE brand bets on date’s heritage appeal

Updated 29 February 2020

A homegrown UAE brand bets on date’s heritage appeal

  • Dates are locally sourced by The Date Room from around 20 farms in the Al Ain oasis area of Abu Dhabi
  • UAE farms grow about 475,000 tons of dates a year, a significant percentage of which is exported

DUBAI: When you can answer the classic business question about a unique selling proposition (USP) in six different ways, you likely have a successful product on your hands.

Thankfully, when you are dealing with dates, unusual product features are not a problem.

There are more than 3,000 date varieties around the world, but Emirati brand The Date Room is approaching the sticky business of breaking into an established market with just half a dozen local cultivars.

From the buttery, caramel notes of the golden Kholas date to the lower-carbohydrate Razaiz type, their flavors offer a change from the more commonly available Medjool and Deglet Noor varieties.

Being locally sourced from about 20 farms in the Al-Ain oasis area of Abu Dhabi, they are also introducing UAE residents to the nation’s heritage.

“Emirati dates are unique because they’re generally much richer in taste and texture than others on the market — although they can be smaller in size,” said Tony N. Al-Saiegh, executive director of The Date Room.

The Date Room launched with two luxury boutiques in the UAE last November after founder Ahmed Mohamed bin Salem spotted a gap for local fruit in a market dominated by produce from Saudi farms.

While official market share by origin data is not available, Saudi dates may control close to 90 percent of the UAE’s retail market.

Yet, with an annual production of 755,000 tons, Saudi Arabia trails Egypt, Iran and Algeria, all of which produce in excess of a million tons each year, according to the UN Food and Agriculture Organization.

By contrast, UAE farms grow about 475,000 tons, a significant percentage of which is exported.

Dates are among the world’s oldest cultivated crops. The palm is native to the Middle East, North Africa and South Asia, with origins that go back more than 5,000 years to what is modern-day Iraq.

The appeal of dates has grown considerably in recent years. Their high fiber and mineral profile have led to their classification as a superfood, they have been used for their high natural sugar content in healthy natural alternatives to processed candy bars.

“The Date Room’s main initial motive was the fact that our own farms produce a superior quality of date in every way,” Al-Saiegh said.

“Our families have been enjoying these dates with every meal and occasion for generations, so why not introduce it to the market in a way that makes them available to everyone but also promotes the unique culture of the UAE?”

The company’s annual production runs to about 160 tons.

For now, distribution is restricted to the UAE, but Al-Saiegh says his team is in talks with distributors in India and Indonesia.

With farmers everywhere agonizing over the impact of climate change, what are the challenges facing date farmers, accustomed as their crops are to heat and aridity?

Scientists expect 2019 to be the second-hottest year on record after 2016, and they forecast that by 2070, today’s major producers will suffer from a markedly unsuitable climate.

Despite palm trees being able to tolerate the heat for hundreds of years, Al-Saiegh says his farms are already feeling the impact.

“As the weather gets hotter and the summers get longer, it’s drying out farms and (arable) land. This means more water is required because a lack of water affects the size and texture of the fruit,” he explains.

While the full impact of those changes is some years away, the Abu Dhabi government has focused on conserving the UNESCO World Heritage oasis where the UAE’s dates are grown.

On the other hand, given the way technology has transformed the local agricultural sector with solutions such as vertical, indoor and soilless farms, Al-Saiegh may soon be able to add another distinguishing feature to The Date Room’s USP.

• This report is being published by Arab News as a partner of the Middle East Exchange, which was launched by the Mohammed bin Rashid Al Maktoum Global Initiatives and the Bill and Melinda Gates Foundation to reflect the vision of the UAE prime minister and ruler of Dubai to explore the possibility of changing the status of the Arab region.