Missiles and Commercial Jets Are Sharing the Skies in One of the World’s Busiest Flight Corridors - Kanebridge News
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Missiles and Commercial Jets Are Sharing the Skies in One of the World’s Busiest Flight Corridors

Scores of airlines have stumbled into a war zone in the Middle East; ‘we were lucky’

By BENJAMIN KATZ
Sat, Nov 23, 2024 7:00amGrey Clock 6 min

“Are those fireworks or something?” asked a passenger on Emirates flight EK146 from Amsterdam to Dubai last month, in a video posted to social media. In fact, what she was watching through her cabin window was a barrage of Iranian missiles headed to Israel.

Her flight was one of scores that shared the skies with Iranian missiles on Oct. 1, an example of how the escalating conflict in the Middle East is endangering commercial aircraft in some of the world’s busiest skies.

The number of missiles crisscrossing the region has surged since the start of Israel’s war with Hamas: An average of 162 missiles have been fired each month so far this year, up from 10 a month in 2023, according to aviation security firm Osprey Flight Solutions. This has led to warnings from airlines, crews, security experts and families of air crash victims that an airliner could inadvertently be shot out of the sky.

Missiles have been spotted in-flight by pilots and passengers, struck near airports, and been fired by militaries and militias without warning to airlines. Governments and aviation regulators have meanwhile failed or been slow to close or restrict airspace.

There is precedent for the concern. Two commercial aircraft have been shot down in recent conflicts. Malaysia Airlines flight MH17 was downed over eastern Ukraine by Russian-backed militants in 2014, and Ukrainian Airlines flight PS752 was mistaken for an incoming missile by Iranian forces shortly after takeoff from Tehran in 2020.

For passengers flying on Oct. 1, the threat felt real. Madalina Birca, 24, was flying with Emirates from Nice, France, to Dubai when the captain announced, with a slight tremble in her voice, that “due to the war situation” the flight was being diverted.

Passengers quickly switched their screens to news channels to find that Iran had started its attack on Israel. Birca followed on the live flight map as the aircraft made an abrupt turn just before crossing into Iranian airspace. She used the in-flight Wi-Fi to try to calculate the missiles’ trajectories and how close her flight had come to catastrophe.

“We were very lucky that we didn’t cross already into the airspace,” Birca said.

Birca’s was one of more than 80 flights that were diverted on Oct. 1 because of the attack. Many other flights continued uninterrupted over Iraq, Jordan, Syria and northern Saudi Arabia, with dozens passing close to launch sites in the north and south of Iran.

Radio messages from air-traffic control towers in Iraq, Kuwait and Bahrain captured some of the tumult in the skies, with pilots declaring emergencies and diversions, and in some cases exclaiming that they could see the projectiles themselves.

“Missiles over Baghdad, over Najaf, over everywhere,” one pilot radioed to Baghdad air traffic controllers, according to a feed from live radio specialist, Broadcastify.

“We noticed some missiles,” a Kuwait Airways pilot said.

“Lights, rockets, I don’t know, now they’re not visible anymore,” someone radioed to pilots on Air France flight 662 to Dubai. Air France has opened a probe into why the flight was caught in the affected airspace.

While ballistic missiles reach an apex far above the altitude of a commercial jet, they pose a major risk during their ascent and descent. About 10% of Iran’s ballistics are also estimated to fail midflight, which, along with their ejected boosters, leads to falling debris. Cruise missiles typically fly at lower altitudes, endangering aircraft as they take off and land. At times, the biggest risk is posed by air-defence systems misidentifying a commercial aircraft as incoming fire.

The tally of projectiles, tracked by Osprey, accounts only for ballistic and cruise missiles. Its figures don’t include unguided rockets, mortars, artillery fire and drone attacks, each of which can also endanger flights.

The risk is ongoing. Iran has briefed regional officials that it’s preparing a response to Israel’s latest retaliatory strike that will utilise more powerful warheads. Osprey has warned airline customers that the next attack could be coordinated with Iranian-backed militias in Iraq, Syria, Yemen and Lebanon, widening the areas of airspace at risk.

Meanwhile, strikes exchanged between Israel and Hezbollah have regularly targeted or struck areas near airports, including a missile that landed in a parking lot at Tel Aviv Airport this month and an Israeli airstrike that caused an explosion near Beirut Airport’s runways a day later.

Israel’s strike against Iranian sites on Oct. 26 was also launched without official notice to airlines, though the early morning timing—around 2:15 am in Iran—meant fewer aircraft were operating. The Israeli Air Force typically consults air-traffic controllers before any strike to try to minimise risk, according to an official.

“It’s a huge concern to civil aviation. We know what happened with the Ukrainian airliner that was shot down in Iran mistakenly,” said Hassan Shahidi , president of the Flight Safety Foundation, a global, nonprofit advocacy group, calling the incident “absolutely preventable.”

Despite the surge in military activity, Middle Eastern airspace has largely remained open over the past year. The region’s already busy skies have become more important after Russia’s invasion of Ukraine locked out carriers from swaths of airspace over both countries.

Aviation safety experts have criticised the inconsistent way in which the skies have been managed by governments, including issuing late or no airspace closures.

“National security and foreign policy trump aviation security, and it happens over and over again in conflict zones,” Osprey’s Chief Intelligence Officer Matt Borie said in an interview.

The U.S. Federal Aviation Administration and others have long imposed bans and restrictions on flights over North Korea because of the country’s tendency to conduct a handful of unannounced ballistic missile tests each year. Last year North Korea launched 37 missiles; this year so far, 52.

Days after Iran’s Oct. 1 launch, the FAA extended its ban on U.S. carriers crossing into Iranian airspace by three years until October 2027, a prohibition it first put in place after the downing of Ukrainian Airlines flight PS752 in 2020. A separate restriction that prevents flights over Syria is also in effect until 2028.

U.S. carriers aren’t restricted from flying over Iraq as long as the aircraft is traveling at a minimum altitude of 32,000 feet, according to the FAA’s latest advisory. There are no explicit warnings against operations over Jordan, Lebanon   or Israel, though the agency maintains a 2021 notice that airlines “exercise caution” in those areas because of the proximity to the military situation in Syria.

A push at the United Nations to standardise rules for commercial flights over conflict zones that began after the downing of MH17 in 2014 has largely stalled, security experts say.

The U.N.’s International Civil Aviation Organization disputed that characterisation, citing an updated manual due this year, a meeting of its “Safer Skies” committee next year and the possible hosting of a third workshop on the subject. The measures demonstrate “the international community’s ongoing dedication to preventing future tragedies in conflict zones,” a spokesman said.

Outside of official bans, airlines typically make their own decisions about whether to fly over a conflict zone on any given day. They rely on a patchwork of advisories from regulators, intelligence from government agencies and advice from private security companies. Rerouting a flight can be a major operational challenge that adds additional fuel costs, can require additional staffing, and which disrupts preassigned takeoff and landing slots.

Even before Oct. 1, most Western carriers, including U.S. airlines, had withdrawn flights to Israel, Iran and Jordan. Many have also opted to reroute flights crossing that corridor to now fly via Egypt and Saudi Arabia.

Carriers are also taking other measures. Emirates is carrying additional fuel in case a flight is required to make an emergency diversion, while European discounter Wizz Air says it will only fly in certain airspace during daytime hours when the risk of an attack is lower. Israel’s flag carrier El Al, meanwhile, has long equipped its aircraft with antimissile defence systems.

Airlines say that safety is their top priority and that any flight path is carefully considered before being allowed to depart. But they’ve also criticized governments, including after Iran’s Oct. 1 attack, for not taking adequate care to protect commercial aviation.

“It’s quite volatile,” Emirates Chief Commercial Officer Adnan Kazim said in a recent interview, adding that his airline has regularly been holding multiple security meetings a day, in addition to its daily security briefing. “Some of these kinds of situations, unfortunately they don’t come with any alert, or any pre-information and you need to manage the situation as you go.”

Israel has rerouted standard flight paths in and out of the Tel Aviv airport away from danger zones since the start of the conflict, according to Libby Bahat, head of aerial infrastructure at the Civil Aviation Authority of Israel. When it learns of potential incoming attacks, it reduces the number of flights in the airspace to make it easier for air-traffic controllers to quickly scatter aircraft to safety, Bahat said.

A spokeswoman for the Israeli Defense Force declined to comment. Aviation regulators in Iran, Iraq, Jordan and Lebanon didn’t respond to requests for comment.

Pilots have expressed concerns. The European Cockpit Association has complained that some airlines are forcing pilots to fly routes even if they disagree with their airline’s safety assessment. The union also wants airlines to update life insurance policies, which typically don’t pay out in the case of a downing over a conflict zone.

“At any moment another disaster could happen that can take the life of innocent people again,” said Kourosh Doustshenas, whose partner died along with 175 others when Iran inadvertently shot down Ukrainian Airlines flight PS752. “We have gone through this, and this can happen any time.”

The U.S. had cautioned that morning of an increased risk of misidentification in Iranian airspace, but with most of its security team off work for Orthodox Christmas, Ukrainian Airlines failed to heed the warning.

Doustshenas has called for governments to be held legally accountable for failing to protect civilian airliners from becoming collateral damage. He also wants passengers to be informed if their flight is routed to fly over a conflict zone.

“Regular people going to the airport to catch their flight have no idea,” Doustshenas said.



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Office-to-residential conversions are gaining traction, helping revitalize depressed business districts

By PETER GRANT
Wed, Nov 27, 2024 4 min

Developer efforts to convert emptying office towers into residential buildings have largely gone nowhere. That may be finally changing.

The prospect of transforming unused office space into much-needed housing seemed a logical way to resolve both issues. But few conversions moved forward because the cost of acquiring even an aging office building remained too high for the economics to pencil out.

Now that office vacancy has reached record levels, sellers are willing to take what they can. That has caused values to plunge for nothing-special buildings in second-rate locations, making the numbers on many of those properties now viable for conversions.

Seventy-three U.S. conversion projects have been completed this year, slightly up from 63 in 2023, according to real-estate services firm CBRE Group. But another 309 projects are planned or under way with about three-quarters of them office to residential. In all, about 38,000 units are in the works, CBRE said.

“The pipeline keeps replenishing itself,” said Julie Whelan , CBRE’s senior vice president of research.

In the first six months of this year, half of the $1.12 billion in Manhattan office-building purchases were by developers planning conversion projects, according to Ariel Property Advisors.

While New York,  Chicago  and Washington, D.C., are  leading the way, conversions also are popping up in Cincinnati, Phoenix, Houston and Dallas. A venture of General Motors and Bedrock announced Monday a sweeping redevelopment of Detroit’s famed Renaissance Center that includes converting one of its office buildings into apartments and a hotel.

In Cleveland, 12% of its total office inventory is either undergoing conversions or is planned for conversion. Many projects there are clustered around the city’s 10-acre Public Square. The former transit hub went through a $50 million upgrade about 10 years ago, adding fountains, an amphitheater and green paths.

“You end up with so much space that you paid so little for, that you can create amenities that you would never build if you were doing new construction,” said Daniel Neidich, chief executive of Dune Real Estate Partners, a private-equity firm that has teamed up with developer TF Cornerstone to invest $1 billion on about 20 conversion projects throughout the U.S. in the next three years.

Conversions won’t solve the office crisis, or make much of a dent in the U.S. housing shortage . And many obsolete office buildings don’t work as conversion projects because their floors are too big or due to other design issues. The 71 million square feet of conversions that are planned or under way only account for 1.7% of U.S. office inventory, CBRE said.

But city planners believe that conversions will play an important part in revitalising depressed business districts, which have been hollowed out by weak return-to-office rates in many places.

And developers are starting to find ways around longstanding obstacles in larger buildings. A venture led by GFP Real Estate is installing two light wells in a Manhattan office-conversion project at 25 Water St. to ensure that all the apartments will get sufficient light and air.

Cities such as Chicago, Washington, D.C., and Calgary, Alberta, have started to roll out new subsidies, tax breaks and other incentives to boost conversions.

The projects are breathing new life into iconic properties that no longer work as office buildings. The Flatiron Building in New York will be redeveloped into condominiums. In Cincinnati, the owner of the Union Central Life Insurance Building is converting it into more than 280 units of housing with a rooftop pool, health club and commercial space.

In the first couple of years of the pandemic, office building owners were able to hold on to their properties because of government assistance and because tenants continued to pay rent under long-term leases.

As leases matured and demand remained anaemic, landlords began to capitulate and dump buildings at enormous discounts to peak values. In Washington, D.C., for example, Post Brothers last year paid about $66 million for 2100 M Street, which had sold for as much as $150 million in 2007.

Washington, D.C., has been particularly hard hit by the office downturn because the federal government has been especially permissive in allowing employees to work from home .

“We’re able to make it work as a conversion because it was no longer priced as though it could be repositioned as office,” said Matt Pestronk , Post’s president and co-founder.

Increasingly, more deals are taking place behind the scenes as converters reach deals with creditors to buy debt on troubled office buildings and then push out the owners. GFP Real Estate reduced costs of its $240 million conversion of 25 Water Street by buying the debt at a discount and cutting deals with tenants to exit the building before their leases matured.

One of the first projects planned by the venture of Dune and TF Cornerstone likely will be the Wanamaker Building in Philadelphia. TF Cornerstone just purchased the debt on the office space in the building and is in the process of taking title.

“The banks are foreclosing and doing short sales,” said Neidich, Dune’s CEO. “There’s a ton of it going on.”

In Washington, D.C., a conversion of the old Peace Corps headquarters building near Dupont Circle is 70% leased just four months after opening, said developer Gary Cohen . Rents are higher than expected.

“If that’s the way to get people downtown, that’s what we have to do,” Cohen said.

Not all developers agree that the economics of conversions work, even at today’s low prices. Miki Naftali , who has converted more than five New York properties over the years, said he has been very actively looking at conversion candidates but hasn’t yet found a deal that works financially.

One of the issues facing converters is that even if an office building is dying, it often has a few existing tenants who would need to be relocated. Some buildings would need atriums to ensure that all the apartments have sufficient light and air.

“When you start to add everything up, if your costs get close to new construction, that’s when you get to the point that it doesn’t make financial sense,” Naftali said.

Some landlords are including clauses in leases that give them the right to evict tenants to make room for a major conversion. Others are keeping a small ownership stake when they sell buildings so that they can learn the conversion process for future buildings.

“The world is looking at these assets in a different way,” said developer William Rudin , whose company decided to learn the conversion process by keeping a stake in 55 Broad Street, a downtown New York office building it sold last year to a converter.