When Donald Trump opened Trump Tower in 1983, it marked a seminal moment in American retail, as six stories of glitzy shops like Harry Winston and Cartier beckoned luxury buyers who strode past a live pianist and a 60-foot indoor waterfall.
“We got the highest rents ever, anywhere,” says former Trump Organization executive Barbara Res, standing in the pink atrium four decades after she helped build it.
Times have changed. Gazing around, almost all the tenants are now gone. The hollowing-out began years ago, but it has only gotten worse since Trump entered politics. Nike abandoned its attached flagship store earlier this year, and Ivanka Trump’s accessories business closed up shop as well.
What’s left is basically nothing but Gucci, Starbucks and The Donald, wall-to-wall. Trump Bar sits atop Trump Grille, next to Trump Café, the Trump Store and Trump’s Ice Cream. It is unlikely Trump pays himself rent for any of them. “Things are all different now,” Res says.
That difference includes profits. Net operating income dropped 27% between 2014, the year before Trump announced his run for president, and 2017, his first year in the White House.
When the real estate mogul descended the escalator to launch his campaign, in this very building, no one could have predicted the chain of events that would lead to this point. Even among those who gave his moon-shot presidential bid a chance of success, the assumption was that Trump would dump his assets before taking office.
By refusing to divest, Trump raised an unprecedented question: How would the most divisive presidency in modern American history affect a company built on the president’s persona? Forbes has been working to answer that question since the moment Trump got elected, interviewing nearly 200 colleagues, partners and industry observers.
While the experiment continues to unfold, in real time, the early results are in. Much as he’s trying—and he’s definitely trying—Donald Trump is not getting richer off the presidency. Just the opposite. His net worth, by our calculation, has dropped from $4.5 billion in 2015 to $3.1 billion the last two years, knocking the president 138 spots lower on the Forbes 400.
Three factors are at play. Much of that decline is due to deeper reporting, which revealed, for example, that the president had been lying about the size of his penthouse. Some of it is due to larger market forces. Trump owns commercial space at a time when e-commerce is decimating brick-and-mortar retail, shaving more than $100 million off his fortune—and no amount of bully-pulpit Amazon-bashing will change that.
But the third factor comes from how Trump the president affects Trump the brand. Those familiar with him saw his 2016 run as a surreal marketing strategy, and Trump has said as much, telling Fortune way back in 2000, “It’s very possible that I could be the first presidential candidate to run and make money on it.”
Since his unexpected ascent to the White House, Trump has tried to leverage the trappings of the presidency to benefit his commercial projects, from visits to his golf courses to hosting summits at Mar-a-Lago to launching a new hotel-licensing business aimed at his voters. (The Trump Organization denies the licensing business has to do with politics.)
“My father made a tremendous sacrifice when he left a company that he spent his entire life building to go into politics,” counters Eric Trump, who now comanages the Trump Organization on behalf of the president, in a statement to Forbes.
“Everything he does is for the good of the American people—he has zero involvement in the Trump Organization and quite frankly to suggest otherwise is outrageous.” (Eric Trump himself, however, told Forbes shortly after the inauguration that he would provide the president bottom-line updates “probably quarterly.”)
Either way, Trump’s mixture of politics and business has proved to be a net loser for him so far. In further polarizing the country, he has also further polarized his business—to the tune of an estimated $200 million hit against his net worth. Understanding how that has happened offers a fresh window into the state of Trump Inc.—and Trump’s America.
In May 2016, a dozen or so golf course appraisers settled in at Trump National Doral, the president’s 643-room Miami mega-resort, for a few days of seminars and golf. At the time, Trump was steamrolling through the Republican primaries while bashing Mexicans, Muslims and even the pope. So it was no surprise when, inside his resort, the conversation turned to how the tumult was affecting Trump’s golf businesses.
A top Doral executive, of all people, was willing to provide an answer. According to three witnesses, he told the room of appraisers that business at the resort—whose revenues were as big as Trump’s ten other U.S. golf courses combined—was suffering because of the campaign.
Historically, Doral had drawn much of its clientele from the Northeast, where Trump was and is especially unpopular. “At the time there was a lot of talk about comments that Trump had made,” says Jeff Dugas, who attended the event. “Nobody was extremely surprised.”
Big names like Nascar and the PGA Tour also pulled business from the club. After Trump won the election, Doral lost 100,000 booked room nights, according to someone who knows the resort’s business. While revenues for the Miami luxury hotel market jumped 4% overall in 2017 according to the data analytics firm STR, Doral’s revenues fell by an estimated 16%.
And that was before a deranged gunman wandered into the lobby earlier this year, draped an American flag over the front desk and began shooting at the chandeliers before he was apprehended by police.
Overall, revenue at the president’s U.S. golf properties fell by an estimated 9% in 2017. It goes beyond politics—guests now endure metal detectors and bomb-sniffing dogs. “It’s not a country club experience,” a source familiar with Trump’s golf business says. “It was captivating at first, but it has become tiresome.” Not even the chance to rub shoulders with a sitting president can overcome this problem: Revenues appear to be down at the three courses Trump visits most often.
A similar scenario has played out in Trump’s traditional wheelhouse: luxury residential real estate. The president still holds roughly 500 condos, co-ops and mansions, all with their own complications, in terms of both hassles and branding. He has 37 units worth an estimated $215 million in midtown Manhattan.
Prices for condos in Trump Tower have fallen every year since 2015, when Trump declared his candidacy, and are an estimated 33% below their highs. Similar trends are playing out a few blocks away at Trump Parc East, where prices are down 23%, and at Trump Park Avenue, where they have dropped 19%.
In Chicago, values of Trump condos have crept downward, the opposite direction of the overall market. “People bought into the building based on the brand being synonymous with luxury,” says Cyndy Salgado, a real estate broker who once worked for the Trump Organization, selling condos in the Chicago tower.
“Now many people feel that the brand represents divisiveness, embarrassment and questionable morals.” All told, the shift in perception has erased an estimated $50 million from the value of his residential units in Chicago and New York.
On the Caribbean island of St. Martin, Mario Molinari, a real estate agent, recalls trying to show a Chinese billionaire a villa a few months ago. The seller, he says, was Donald Trump, who was offering 11 bedrooms, an outdoor bar and a private tennis court for $16.9 million.
But when they got to the gate, the president’s property manager told them they needed background checks to go inside, which typically take a couple of days to process. “It’s too small for me,” the billionaire responded, miffed. More than a year after the place went on the market, Trump still hasn’t sold it.
Such weakness seems to have infected the Trump brand across the board. After multiple bankruptcies, Trump adroitly turned his business toward real estate management and licensing, slapping his name on other people’s buildings, ties, steaks and even a urine test—allowing him to make money while others take all the financial risk.
But partners at three Trump-branded hotels (Toronto, Panama, New York City’s SoHo) have taken the president’s name off their projects, which helps explain why politics has dragged that segment of the Trump hotel empire down about $30 million, by Forbes’ estimates. Meanwhile, many of his licensing customers, including Macy’s and the mattress-maker Serta, fled in the early days of his abrasive campaign—and the president’s company doesn’t seem to have landed a single new deal since.
In 2015, Forbes valued Trump’s product-licensing operation at $23 million. It’s now down to a mere $3 million. “He’s so polarizing that people are afraid to do business with him,” says Jeff Lotman, who runs the licensing company Global Icons. “He has significantly tarnished the brand.”
Headaches in the luxury market could, in theory, be offset by Trump’s newfound popularity with the larger, less affluent MAGA set. Four months after their father took office, Eric and Donald Trump Jr. announced a new business venture to bring lower-priced Trump brands to hotels in Middle America.
Filings released months later indicate that the majority owner of this venture is none other than the president himself, with a 77% stake, positioning Trump to profit from his political stardom.
But not much has come of it. The Trumps signed deals to brand four hotels in Mississippi, but those agreements generated only $27,000 last year. They told reporters there were as many as 35 other deals in the works—none of them have panned out so far.
Trump’s business has some bright spots. A few blocks from the White House, at the Trump International Hotel, Trump fans hobnob with cable news stars and Cabinet secretaries. The place turned a $2 million profit in the first four months of 2017, far exceeding the Trump Organization’s expectations. A chunk of that money comes from various GOP organizations, which have pumped more than $1.3 million into the hotel since it opened in fall 2016, according to Federal Election Commission data.
Despite what seems a violation of the Constitution’s emoluments clause, designed to keep presidents free from foreign financial interest, the governments of other nations are welcome too. Everyone from Kuwaiti officials to the prime minister of Malaysia has reportedly spent money there. And lobbyists working for Saudi Arabia disclosed that they ran up a $270,000 tab in just six months.
In terms of condo sales, Trump sold one in New York to a woman named Angela Chen, just a month after he took office. Chen paid $15.9 million, $1.8 million more than her downstairs neighbor shelled out for a similar apartment a year earlier.
The deal sparked conflict-of-interest concerns because Chen is apparently the head of a business called Global Alliance Associates, which claims to use its network with the “highest levels of government officials” to help companies expand into China.
Presidential provenance is also proving lucrative. After Trump made Mar-a-Lago world famous, the club is said to have doubled its initiation fee to $200,000. Fallout from the president’s response to the deadly white-supremacist rally in Charlottesville reportedly prompted roughly 20 organizations to yank events from the club, likely costing Trump over $1 million in revenue. Nevertheless, Forbes estimates, Mar-a-Lago is now worth $160 million—$10 million more than it was before it became the winter White House.
The same goes for the president’s penthouse in Trump Tower. Although declining prices in the building have likely hurt its value, the 11,000-square-foot apartment became a historic landmark the moment Trump won the presidency. Forbes figures the election could have added $10 million to any potential deal.
This phenomenon also extends to the value of Trump’s Boeing 757, which became a backdrop for his campaign rallies. Some plane brokers think it could be worth double the roughly $20 million it would fetch if anyone else owned it (Forbes estimates a more conservative $6 million presidential premium). Eric Roth, who customized the interior of the plane for Trump, says, “What’s a baseball worth? About $3. What about if Babe Ruth signed it? It’s not $3 anymore.”
Some of the presidential profiteering appears more direct: On the day he assumed office, Trump took the unusual step of immediately launching his reelection campaign.
Donor money kept flowing, and Trump’s companies have kept charging rent to the campaign. The result: America’s first billionaire president has turned more than $900,000 of donations into revenue for himself, without putting up a dime.
As long as he’s president—and refuses to divest his business holdings—Donald Trump will be able to boost his fortune in ways no other businessman can. Three days before Christmas last year, Trump sat in the Oval Office to sign the most significant tax reform legislation in decades. “This is something I’m very proud of,” he said, clutching a black marker. “Great for our country, great for the American people.”
Great as well for Donald Trump. The president famously refused to release his tax returns, but the new bill clearly benefits him. A Forbes analysis shows that Trump could save about 10% on business income. Based on Trump’s 2005 tax return, which leaked shortly after the real estate mogul took office, that could mean as much as $11 million annually.
Other policies, which went into effect with far less fanfare, may also bolster his fortune. Take tariffs. Higher steel and aluminum prices make it more expensive for developers to build. For someone like Trump, who owns buildings but hasn’t done much construction recently, that raises the barrier to entry for competitors.
His immigration policies, which appear to be raising the cost of construction labor, could have a similar effect. Those two factors are “very favorable to a guy who owns hard assets,” says Dave Rodgers, a real estate analyst at financial firm Baird.
And while Trump promised not to do any new foreign deals while in office, cutting off a source of growth, opportunities will be waiting once his presidency ends. In the former Soviet republics of Georgia and Kazakhstan, Trump’s ex-business partners felt empowered to move ahead with potential projects, making it clear they are prepared to pay him down the road.
“The tower will be ready for the Trump mark,” the president’s former partner in Georgia told Forbes last year, “if the Trump mark is ready to come back to the tower.” And Trump has not forgotten about his business: He asked about the Georgia project in a meeting with the country’s prime minister last year, according to the partners.
For now, though, Trump’s presidency remains a net loser for him, which seems ironic. In not divesting, he set himself up so that his actions, and those of people who engage with his businesses, present perpetual conflicts of interest—or the appearance of them.
Meanwhile, if he’d liquidated, paid capital gains tax on his entire fortune and created a blind trust to invest it all in the booming stock market, Trump would be $500 million richer than he is today—without the headaches.
Refugees: The Nowhere People
The displaced and their search for identity and belonging; the migrant mother and the forgotten daughters who take the brunt of it all.
There are 65.3 million displaced people worldwide. Of those people, 21.3 million are refugees, the people who belong to – Nowhere. No one knows where they come from, no one knows where they’re going. Ban Ki-moon, secretary-general of the United Nations, has highlighted that: “We are facing the biggest refugee and displacement crisis of our time.” He has called it a crisis of solidarity.
The United Nations High Commissioner for Refugees’ (UNHCR) Global Trends report shows that since 2003, the number of newly-displaced people per minute has increased from just fewer than 10 to 24 persons in 2015. In 2014, the number was at its highest – 30.
The reasons for displacement differ. Increasingly, the main reason is fleeing the source of political or economic conflict. It then becomes difficult to imagine the uncertain reality the many have run to or are left to live through. In theory, international law defines and protects refugees, encouraging the initiation of asylum procedures once they enter a new environment. In reality, the many who have migrated become nomads, often pursuing what becomes a hollow quest for a better life.
Women and girls form around 50% of refugees or displaced people around the world. In Africa, the number of women uprooted by war and unrest is significantly higher. A study published by Hivos International recorded 80% of refugees in Lebanon were women and children.
Along the inner streets of Johannesburg, are ‘foreigners’, women selling fruit, vegetables and sundry items to feed their hungry children and themselves. Whilst walking up to the Department of Social Development, two young female hawkers ran past me, clutching towels in one hand and tacky sunglasses and cellphone pouches on the other, feeling cops. As is the case with hundreds of immigrants, they have no papers.
Another, a lady, sits rubbing her pregnant belly beside a small stall on Eloff Street. She sells hats, wallets, purses and scarves. She is reluctant to talk and asks not to be named. She came to South Africa following her husband escaping the political turmoil in the Democratic Republic of Congo (DRC).
“I came after he had made his way to what we were calling the land of milk and honey… [but] when I arrived in South Africa, it was made known to me that he had left for Canada. I’d come for nothing.”
Abandoned, she was forced to join the informal trading business.
“Life is hard here. We as foreigners are just not free. People don’t respect us and just steal our stock,” she says with little emotion.
After matriculation, she had gone on to acquire a degree in management in the DRC. But today, she is battered and broke.
Often, along their treacherous journey, the women are abused and mishandled by gangs, truck drivers and cops. This is only the beginning of their travails. The constitutional guarantees cannot protect them from the injustices they face. The UNHCR has highlighted that life for a woman beyond her country of origin, becomes a constant battle and one of constant fear and uncertainty.
One of the many dangers is the xenophobic attacks, as has happened in recent times, with South Africans accusing foreign nationals of taking their jobs and over-populating their areas.
The informal trading sector is the main space in which the hateful disputes unfold. But for foreign nationals who have no other hope, informal trading becomes the only option.
Vanya Gastrow, a PhD candidate currently doing research for the African Centre for Migration and Society (ACMS), says one of the biggest challenges faced by foreign traders who come to South Africa is the crime targeted at them.
Other challenges include lack of access to reliable documentation. Says Gastrow: “Asylum seekers and refugee permits often don’t meet documentation requirements for banks, visa offices, and landlords.” She says such foreigners cannot open bank accounts or access loans.
“These permits also require frequent renewals and so many make the decision to just live without them.”
For women though, it is even worse.
“It’s the sexual violence … and extortion, specific dangers that authorities fail to understand,” according to Penny Foley, a volunteer from Australia currently living in South Africa. She highlights that the objectification of female refugees is one of the many symptoms of what has become the de-humanizing process of forced migration.
“The global community needs to change the 20th century understanding of a nation-state and move away from the notion of isolated nationalities”, she says.
“Interestingly though, the problem is not just about changing the perception of what nationals think of foreign nationals, relations amongst refugees need to be established. The fight becomes harder if unity lacks amongst them.”
Women and girls form around 50% of refugees or displaced people around the world.
In the pages that follow, FORBES WOMAN AFRICA speaks to three women from Zimbabwe; what displacement has done to them.
“I just stood at the border in my pink shirt and panties after I had crossed over. I had nothing and I was scared.”
*Tafadzwa Shumba is 42 and came to South Africa in 2008. She was forced to leave her country, Zimbabwe, because of the political instability that made life for her and her family unbearable.
“I was seen to be too neutral so they threatened my parents and tried to kill me for not engaging in their dirty politics.”
The choice to leave was not an easy one to make but as she recalls, “I literally had to take that leap of faith”.
On July 27, 2008, as the world slumped to a financial crisis, Shumba packed a portable bag. She had R300 ($21) that would pay the ‘Guma-Gumas’, a group of men said to assist escapees across the woods to the border.
“I had a passport but those days we were using visas and they were expensive so my only choice was to cross over illegally.” She was the only woman amongst seven guys.
The group began the three-day walk through the forests, the Limpopo River, eventually reaching the border.
Few survive the trek but Shumba’s determination carried her.
“I don’t forget, as we walked through the forest we saw dead bodies. There was a human head lying on the ground with dreadlocks like mine,” says Shumba, running her fingers through her own.
“The Guma-Gumas picked it up and pointed it at us and said if you don’t give us your money you will end up like this head.”
“They took everything, even my pants and left me with there in my pink shirt, panties and shoes.” There was no time to process the betrayal. The trek had to continue.
“Look at me,” she says, as she gestures to her body. “I am nothing. I was a nurse, we would wear crisp white uniform and after work, I had a home to go to.”
Last year, she was involved in a road accident in South Africa that left her crippled.
“I could not even get compensation from the Road Accident Fund because I am a foreigner.”
Now, because of her disability, she cannot work so she takes care of children and sells fruits and vegetables when she is desperate for money. The future is uncertain but she takes “each day as it comes”.
There was a human head lying on the ground with dreadlocks like mine.”
“Coming to South Africa was supposed to be like going to heaven,” says *Tapiwa Moyo who is 22 years old and from Zimbabwe. When her mother, her only caregiver, left her and her younger sister to find work in Johannesburg, she did not anticipate the hardship.
“At one stage we went without food for almost a week and we had to start selling my mother’s belongings to get some money to buy some maize meal.”
Moyo’s mother saw South Africa as the place where she could try and build a better life for her children.
“The deal was that she would work for a few months, save the money and get us passports and visas to move to South Africa.”
The months passed and then they turned into years. When their supply of cash and food ran dry, Moyo, as the older sister, still in her early teens, was forced to work menial jobs washing clothes, selling nuts and chips and eventually having to part with all their worldly possessions to survive.
“I would see other children playing with teddy bears and Barbie dolls or walking in the streets with their mothers and I would just cry because that’s all I wanted to do,” she weeps.
She was 15 when she received word that her mother had finally made enough money to bring her and her sister to South Africa. They had waited seven years.
“When I finally got my passport, it was like my prayers were finally answered.”
The bus ride was one filled with excitement.
“It was a 12-hour ride but I couldn’t even sleep. My life was about to change.”
She recalls the moment she arrived.
“Everything I thought was a lie, South Africa was supposed to be my heaven but it was not.”
She wipes her tears with anger, not allowing herself to be weak.
“I’ve cried about it all for so long you know and nobody cares … the tears don’t mean anything.
My name meant nothing to the border police and some of the citizens. I was just another ‘kwere-kwere’.”
Since then, that’s all she’s known apart from poverty. Just as she did in Zimbabwe, Moyo finds and sells what she can to ensure she and her daughter do not go to bed hungry each day.
“I left one hell for another. Would I like to be back home with my family? Sure, but that’s no longer an option for me. I’m here now.”
At some point, I fell to the ground and started to scream ‘I am tired’.”
*Emily Shamu came to South Africa when her daughter, Lisa, was a toddler.
“She was too heavy for me to carry along with our luggage and a gentleman offered to carry her when we crossed the Limpopo River,” she says.
She would normally not have trusted a stranger, but for Shamu, the focus was survival.
Shamu and the others walked 12 hours to Messina, the northernmost town in South Africa’s Limpopo province.
“I did not know we were going to walk for so long. At some point, I fell to the ground and started to scream ‘I am tired’.”
She describes her knees colliding with the gravel road. Her daughter watched as she cried uncontrollably. “My child remembers. We rested for some time and I used this time to remind myself (sic) why I was going through this.”
Now, living in South Africa for eight years as a refugee, her life is defined by a cycle of begging – not for food or spare change – but, each quarter of the school year, to plead with the headmaster to allow her daughter to sit her exams with her peers.
“Every term, my heart sinks… I don’t know if he will say yes. We are just controlled by circumstances.”
In South Africa, students are required to produce a form of identification before they are allowed to partake in written assessments. Because Shamu has no asylum papers, she is unable to apply for an ID document for her daughter.
“If I’m honest, I have not tried to get my papers,” she says. “I tried in 2010 and the back and forth is just so demoralizing. “ Shamu and her daughter live stateless with nothing to ensure stability.
“I want to go home, if the situation can just change…”
Interestingly though, the problem is not just about changing the perception of what nationals think of foreign nationals, relations amongst refugees need to be established. The fight becomes harder if unity lacks amongst them.”
Refugees Seen As ‘The Other’
The story of a Vietnamese immigrant
Lisa Phung, her mother and older sister hid in a mosquito and disease-infested swamp during the day and in the night were led onto a small boat that took them to a main fishing boat which would eventually transport them to their new lives.
Earlier, Phung’s mother had received instruction from her father to leave Vietnam as their freedom was under threat. He was a pilot who had just been captured by communist soldiers in the Vietnam War. Her mother who was not educated enough for a stable job heeded her husband’s call and managed to secure the money to get her and her girls out of war-torn South Vietnam.
“People smugglers” were paid to get them out.
“The first two times, we got caught and jailed,” says Phung. The third time they got lucky.
“Enroute to the fishing boat, we got robbed by the people smugglers and everything was taken except for a few pieces of food.”
But at least they got onto the big boat.
“We were crammed up like anything and I was one of the youngest at age four.”
Shortly after they started, the boat’s engine died.
“They thought it was a petrol problem but the people smugglers had taken the petrol and replaced the tank with water.”
The group of people floated for 10 days with nothing more than the packet of rice.
“My mother remembers that I was starting to die … everyone was getting ready for death.”
Shortly before a storm, a British cargo ship sailed past and for a few moments there was hope of survival.
“It didn’t stop to save us and that was heart-breaking because we lost hope.”
It was as though their fate was sealed but then, in a surprise move, the ship turned around and carried the refugees, Phung and her family amongst them, to Singapore.
“After the ordeal, my mum told me she lost hope in a lot of human beings because everyone just looked out for themselves.”
Because Phung’s mother had children, she was the last to be rescued.
“She was the last person off that boat; it must have been horrifying for her.”
The ship docked in Singapore. From there, the refugees were taken to a detention center in Hong Kong where they stayed for three years.
“My mum wanted to go to the USA but they were no longer taking refugees.”
Sometime later, Australia was accepting refugees. Phung was seven years old and finally a life of some stability awaited her.
Years have passed. She now lives in Australia with a family of her own and uses her experience to give hope to others who have walked her path.
“I’ve seen how refugees are seen as ‘the other’ in different parts of the world, coming to take their jobs or their land and they really just want a safe place to live and everyone should have that right.”
Misplaced In Their Own Space
How a community in Western Algeria live like refugees, in their own land.
isolated from the world and within their own state, this has been the plight of the Saharawi people living in refugee camps in Western Algeria for the last 41 years. They face human rights injustice, but unlike other global refugees, it is on their own land.
The Polisario movement, the voice of the Saharawi ethnic group, says the territory reported to be illegally occupied by Morocco belongs to the Saharawi people.
For years following a guerrilla war, they have tried and failed to claim ownership of the land from the Moroccan government with no success. Now, according to the United Nations, they live in mud brick houses and tents in the harsh desert conditions of Tindouf Province, Western Algeria.
They have been locked in an armed struggle for liberation. At the forefront of the movement are the Saharawi women who have increased their traditional role in the fight not only to reclaim their territory but to also salvage their self-determination as a people.
According to Catherine Constantinides, a human rights activist and executive director of Miss Earth South Africa, the power structure is unlike any other on the globe, particularly in Muslim culture. “Women have a strong hold in the camps; they double as caregivers as well as liberation fighters. They also invest heavily in themselves educating one another and learning various skills. They exert the power there and the men respect this because they hold the camps together.”
Constantinides who has dedicated her efforts to bringing to the fore their plight emphasizes the world cannot fathom the dire conditions faced by the Saharawi people “until you see it”.
“The Saharawi people have less than nothing,” she says. On one her many visits to the region, Constantinides witnessed the dehumanizing process of the people getting food dropped from the skies as by aeroplanes and water delivered in huge trucks. The men cannot provide for their families and their children just watch each time as they reach out to the skies to catch what they can.
This is just one illustration of the wide socio-economic gap and the gap between humanity and policy regulations that leave the Saharawi people living in a constant state of statelessness and discomfort.
Moreover, there are no adequate health facilities for them.
“Child mortality is at its highest in Tindouf as women are forced to give birth in their mud houses or tents,” explains Constantinides.
“It’s devastating because children bring that spark of hope within that unfortunate situation.”
United Nations Secretary-General, Ban Ki-moon, has since visited the refugee camps as an effort to reinitiate negotiations in the region to end the dispute and to bring liberation to the Saharawi people. During his visit, he said he “would spare no effort towards a just and meaningful solution” for the people in Western Algeria.
These are the kind of efforts activists like Constantinides want to see in the fight against the global neglect of refugees. “We have to find better ways of dealing with the crisis.”
One example which Constantinides makes reference to is the naturalization process that she witnessed earlier this year in Virginia, America, on the 4th of July.
“This was an example of how in time systems can work if applied to crises to give people dignity.”
“We have to bring the concept back of supporting each other instead of building walls,” she sighs.
Until such time, the Saharawi people will continue the taxing fight for their statehood, led by the women who Constantinides says will never give up
Mysterious Object Under Moon’s Largest Crater Found By Scientists
An unknown, mysterious mass has been found beneath a crater on the moon, according to researchers at Baylor University—and it may give scientists clues into how the moon was shaped.
- Researchers discovered an unknown anomaly roughly five times the size of Hawaii’s largest island.
- The mass is sitting beneath one of the largest preserved craters in the solar system, the South Pole-Aitken basin.
- A plausible guess by scientists: The mass is a piece of metal left behind nearly 4 million years ago by the asteroid that formed the crater.
The mysterious mass sits more than 300 km (186 miles) underneath the solar system’s largest crater. The crater isn’t visible to the naked eye because it’s on the far side of the moon, which always faces away from Earth.
While the researchers who discovered the mass don’t know what it is or where it came from, computer simulations suggest that, under the right conditions, a large asteroid’s iron-nickel core could have been embedded inside the moon upon impact almost 4 million years ago.
Another possibility, according to researchers, is that the mass consists of oxides left over from when the moon was changing from a large ocean of molten magma to what it is today.
-Rachel Sandler; Forbes Staff
Why Mitsubishi Heavy May Want Bombardier’s Money-Losing CRJ Regional Jet Line
Bombardier may be close to completing its exit from the airliner business, confirming Wednesday morning that it’s holding talks with Mitsubishi Heavy Industries to sell its once-mighty CRJ regional jet line. For Mitsubishi Heavy, which has struggled to make the climb from an aircraft component supplier to a jet maker, the deal may be less about the money-losing CRJ than acquiring its extensive service network.
Tokyo-based Mitsubishi Heavy is years behind schedule on the MRJ, a twin-engine regional jet that was initially expected to be launched in 2013 with Japanese airline ANA. With certification of the 90-seat version believed to be on track for 2020, acquiring the competing CRJ program would solve the knottiest remaining problem for Mitsubishi: product support and maintenance, says Richard Aboulafia, an aerospace analyst with Teal Group. “They have no experience at that, and no infrastructure,” he says.
The sale talks were first reported by The Air Current.
Montreal-based Bombardier created the regional jet market in 1989 when it launched the CRJ, which was a stretched, 50-seat version of the Challenger business jet that it had acquired a few years prior when it first got into aerospace by buying the struggling aircraft maker Canadair from the Canadian government. With jet fuel cheap in the 1990s, U.S. airlines snapped up the CRJ to replace propeller-driven planes on short-haul routes serving smaller cities. Bombardier has sold 1,950 CRJs, but sales slowed in the early 2000s as oil prices climbed and airline consolidation shrank route networks.
Bombardier had 51 outstanding orders for the aging airframe as of March 31, a backlog that should be worked through by 2020. Bombardier refreshed the CRJ in recent years with a new cabin design, but its seventies-vintage General Electric engines are inefficient by modern standards, and it’s not clear if the plane could be retrofitted with newer ones.
What’s kept sales trickling along has been the persistence of so-called “scope clauses” in U.S. airlines’ labor contracts with their pilots, which restrict the major carriers from contracting with regional airlines for flights of planes above 76 seats and a maximum takeoff weight of 86,000 pounds. With the MRJ, Mitsubishi made a losing bet that the scope clauses would be relaxed by the time it came into service: the MRJ90 is too big to be used in the U.S. now. Embraer made the same miscalculation with its new E2 regional jet line.
Mitsubishi has been working on a 70-seat version, but that project is reportedly going through a redesign that could delay it until 2023.
United and Delta pilots are negotiating new contracts, and American and Southwest’s agreements are up in 2020, but it’s unclear whether the airlines will be able to win relaxation of the scope clause restrictions.
It’s also unclear whether Mitsubishi would want to keep producing the CRJ, scope clauses or no, given its unprofitability. The company could choose to fulfill current orders and wind it down, says Aboulafia.
Beyond the CRJ maintenance network, Mitsubishi could benefit from adding experienced engineers from the Bombardier program who could aid in developing the MRJ and in the complicated regulatory certification process.
Bombardier filed a lawsuit against Mitsubishi in October, alleging that former Bombardier employees had supplied it with trade secrets that would help the MRJ gain certification.
A sale of the CRJ line would be the sunset of an era of ambition for Bombardier, a snowmobile maker that expanded into rail in the 1970s and aviation in the 1980s with a series of acquisitions, but stumbled badly earlier this decade with an attempt to challenge Airbus and Boeing by developing a 100- to 130-seat jet, the CSeries, that almost bankrupted the company.
CEO Alain Bellemare, who came aboard in 2015, has sold off assets and raised new debt and equity to pare Bombardier’s heavy debt load, aiming to slim the company down to its strongholds in business jets and trains.
In 2018, Bombardier gave away a majority share in the CSeries to Airbus, which has rebranded it the A220. Airbus has the option to buy full control in 2025. This week Bombardier closed the sale of its Q Series regional turboprop line to Longview Capital, and last month it announced that it would sell an aerostructures factory in Morocco and its Northern Ireland unit, which developed innovative composite resin technology used to make the wings for the A220.
For the CRJ program, Bombardier could fetch a similar price to its sale of the Q Series, which netted $250 million, says analyst Christopher Murray of AltaCorp Capital, and a deal could allow it to offload other contingent liabilities.
Bombardier shares rose 8.9% Wednesday morning to 2.14 Canadian dollars on the Toronto Stock Exchange. The stock tumbled 20% in late April after the company cut its 2019 sales and profit outlook due to delays and quality issues on multiple contracts at its rail unit. Bombardier said during its first-quarter earnings call last month that it would no longer commit to previously announced financial goals for 2020, including raising sales to $20 billion.
-Jeremy Bogaisky;Forbes Staff
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