Aviation
Asian Carriers Fuel Airplane Orders
SINGAPORE — The world’s biggest aircraft manufacturers expect airlines in the Asian-Pacific region to spend close to $2 trillion on shiny new jets over the next two decades, but some industry-watchers are questioning if carriers really need all those planes.
Much of the growth in Asian commercial aviation has been fueled by aggressive new budget carriers like Malaysia’s AirAsia Bhd. and Lion Air of Indonesia. Low-cost airlines, nearly unheard of in Asia just 10 years ago, now account for a quarter of the seats in the region.
Most airlines in Asia have ordered more planes than their current fleets in the hope of capturing a bigger slice of the market, and that is raising concerns among analysts that the rise in capacity could outpace that of passenger demand.
Airbus Group EADSY -0.55% NV on Tuesday said it expects airlines in the Asian-Pacific region to buy planes worth $1.8 trillion over the next 20 years. That view is close to the $1.9 trillion estimate Boeing BA +0.91% Co. gave a day earlier.
Asia’s “macro economic context is looking good in the long term but every airline believes its market share will grow. That cannot happen,” said Bertrand Grabowski , the head of aviation finance division of Germany’s DVB Bank SE.
He said some airlines in Asia will fail and their aircraft will as a result need to be redeployed.
“We aren’t yet talking about over-ordering, but certainly there’s very aggressive ordering,” he said.
However, Boeing and Airbus say the orders are in line with their growth projections as they rake in new deals.
“There is a good balance between supply and demand,” said John Wojick , who heads global sales of commercial aircraft at Boeing, noting that he is comfortable with the company’s current global backlog of 5,080 planes.
Smaller regional airlines in Asia are making a big push for new capacity as they foresee market growth. At the Singapore Airshow on Tuesday, Vietnamese budget carrier VietJetAir signed firm orders for 63 Airbus A320 jets, as well as purchase rights for 30 more, in a deal valued at $9.1 billion at list prices.
The order is at least several times the size of the current fleet of 11 leased A320s at VietJetAir, which flew 4 million passengers last year.
Also on Tuesday, Myanmar’s state-owned Myanma Airways entered a leasing agreement for 10 Boeing 737 jets that will nearly double the company’s current fleet of 12 planes.
The deals add to the hundreds of jets already on order among Asia’s premium carriers and low-cost airlines.
AirAsia and Lion Air have more than 1,000 new jets on order between them that will be delivered over the next decade. The order books at Boeing and Airbus are nearly full. An airline looking to buy single-aisle planes, the workhorse of the industry, is now unlikely to get delivery slots over the next four to five years.He said Indonesian budget carrier Lion Air is likely to look to place some of its aircraft with other airlines through leasing deals, taking advantage of its existing delivery slots with both Boeing and Airbus.
Lion Air is likely to receive about 45 new planes this year from Boeing, Airbus and European turboprop aircraft maker ATR. Still, the airline is confident it can fill them.
“The Indonesian market is still growing by 15% per year. We feel there’s still opportunity to grow domestic services in Indonesia. Plus Lion has enormous opportunity to expand internationally,” said Leithen Francis, a Lion Air spokesman.
Concerns of rapid expansion in the industry come as even as many of the region’s traditional airlines like Singapore Airlines Ltd. and Malaysian Airline System Bhd. are struggling from intense competition.
A spokeswoman for AirAsia said some of the new orders will replace older aircraft “to ensure we keep a young and efficient fleet.”
Asia’s full-service carriers have, in recent years, seen budget airlines eat into their market share on shorter routes. On longer routes to the U.S. and Europe, they have to compete against international airlines, particularly Gulf carriers, such as Emirates Airline and Qatar Airways.
Still, Boeing and Airbus are eager to sell more of their flagship jets to the region’s airlines, as reflected by their expectations that the region will take delivery of over a third of total planes being produced through 2034.
Airbus brought its entire leadership team to Singapore for the city-state’s biennial air show, where its latest jet, the widebody A350, made its first flying display at an international air show on Tuesday.
“We are on track to certify the A350 and deliver it to Qatar Airways by the end of this year,” Fabrice Brégier , said Airbus president and chief executive.
Airlines in the Asia-Pacific will need 10,940 new planes in the next 20 years, Airbus said Tuesday, with 4,100 of those being widebody jets that typically carry 300-500 passengers. Airbus’s projections are slightly below the 12,820 jets that Boeing expects region to take.
– WALLSTREET JOURNAL
The Nigeria Civil Aviation Authority (NCAA) has announced stringent measures against pilots and crew members who work for multiple airlines concurrently, a practice it describes as a serious safety violation.
In a letter dated November 6, 2024, Acting Director-General, Chris Nojomo warned that pilots operating for more than one airline without specific safety protocols pose significant risks to Nigeria’s aviation sector.
READ MORE: Obasanjo Visits Ondo Gov, Offers Support Ahead of Election
The directive, titled “Prohibition of Ad-Hoc Flight Operators for Multiple Airlines,” noted that NCAA surveillance reports revealed multiple cases of unauthorized cross-airline work by flight crews, which the agency now plans to address.
According to the NCAA, simulator and proficiency checks endorsed on a pilot’s license are valid only for the specific airline and training program under which they were issued.
The letter stated, “With effect from the date of issuance of this directive, all operators and holders of pilot licenses are informed that this action will be treated as a violation of the Nigeria Civil Aviation Regulations.”
The NCAA’s new policy, effective November 11, 2024, warns that violators will face strict enforcement actions. Moving forward, simulator renewals will also be filed directly with individual operators, further tightening the agency’s oversight.
In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.
The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.
READ ALSO: FCTA Allocates N9.8bn To Upgrade Abuja Airport’s Presidential Wing
At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.
He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.
The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.
“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.
Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.
Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.
Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.
Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.
Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.
Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.
Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.
Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.
Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.
Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.
He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.
Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”
ALSO READ: Why Foreign Airlines Must Patronise Nigerian Caterers – Keyamo
Keyamo expressed confidence that by the time his Ministry was done enlightening them, “they will be satisfied”.
He added that “the privates air strip owners pay the Federal Government handsomely for these services.”
Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.
“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.
“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.
“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.
“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.
“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.
“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.
“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.
“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.
“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”
I Previously Called For Simon Ekpa To Be Shot – APC Chieftain
I Make $40,000 Montly With Content Creation Says Blessing CEO
Senator Ifeanyi Ubah Laid To Rest In Nnewi Amidst Tight Security
Tinubu Moves To Transform Tragedy To Prosperity With Livestock Investment
Nicki Minaj Teams Up With Davido On ‘The Pink Print’ Anniversary
Simon Ekpa’s Arrest Will Restore Peace In South East, Says Enugu Gov’t
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
