Aviation
Aircraft demand spurs record gain in U.S. durable goods orders
WASHINGTON DC-Orders for long-lasting U.S. manufactured goods posted their biggest gain on record in July on strong overseas demand for aircraft, and the underlying trend also remained firm, pointing to brisk economic growth.
Durable goods orders, items ranging from toasters to aircraft that are meant to last three years or more, jumped 22.6 percent last month after an upwardly revised 2.7 percent increase in June, the Commerce Department said on Tuesday.
Transportation orders rose a record 74.2 percent as bookings for civilian aircraft more than tripled. Boeing (BA.N) had said earlier it received a record 324 aircraft orders in July. At the same time, orders for autos logged the biggest gain in five years.
Outside of transportation, demand was decidedly softer. Still, upward revisions to the data for June as well as a pick-up in business investment plans, shipments and order backlogs suggested a strong underpinning for growth.
“This report reinforces the message that manufacturing growth is picking up and is likely to support stronger GDP growth in the second half of the year,” said John Ryding, chief economist at RDQ Economics in New York.U.S. stocks traded higher, with the Dow Jones industrial average .DJI reaching an all-time intraday high, with Boeing shares up 0.4 percent. Prices for U.S. Treasury debt rose, while the dollar was flat against a basket of currencies. Helping bolster investors’ spirits, the Conference Board said consumer confidence hit its highest level in nearly seven years in August. A gauge of households’ perceptions of the labor market touched its best level since July 2008.
A separate report, however, showed house price growth continued to slow in June. The S&P/Case Shiller’s national house price index rose 6.2 percent from a year ago, the smallest gain since November 2012 and down from a 7 percent rise in May.
The housing sector cooled abruptly last year as mortgage rates moved higher, with a lack of supply also crimping sales. Economists think slower price appreciation will help keep the housing recovery on the rails.
STRONG AUTO ORDERS
Many of the Boeing orders, including 150 planes by the Dubai-based airline Emirates EMIRA.UL, were for a new version of its top-selling twin-aisle 777 jet, which is still under development and sells for about $377 million at list price.
The aircraft is due for delivery in 2020. It will take at least 10 years for the resulting increase in production from the orders, which also included the Dreamliner jet, to filter through to U.S. gross domestic product.
The report on durable goods orders showed demand for non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, slipped 0.5 percent in July.
But the decline followed an upwardly revised 5.4 percent advance in June and bolstered perceptions that business spending is rising. These core capital goods orders were previously reported to have increased 3.3 percent in June.
Shipments of these goods, which are used to calculate equipment spending in the government’s GDP measurement, increased 1.5 percent last month, helping to prompt Morgan Stanley to raise its third-quarter growth estimate by five-tenths of a percentage point to a 3.5 percent annual rate. Barclays lifted its estimate by 0.3 percentage points to 2.7 percent.
Unfilled orders for core capital goods increased 1.1 percent last month after rising 1.7 percent in June, showing a steady pipeline of work that will keep the nation’s factories humming.
“There is plenty of gas in the tank for continued growth in business spending,” said Tim Quinlan, an economist at Wells Fargo Securities in Charlotte, North Carolina.
The Nigerian Civil Aviation Authority (NCAA) has taken action by suspending the permits of three private jet operators due to their involvement in commercial flights.
Chris Najomo, the Acting Director General of the NCAA, issued this suspension during a briefing to all airlines on Tuesday.
Additionally, Najomo ordered a re-evaluation of all PNCF permits within a 72-hour timeframe.
The head of the NCAA stated that Festus Keyamo, the Minister of Aviation and Aerospace Development, had instructed the discontinuation of private jets’ commercial use in 2023.
Despite this directive, the operators persisted in their commercial activities.
Najomo said “Subsequently, in March 2024, the NCAA had issued a stern warning to holders of the permit for non commercial flights, PNCF, against engaging in the carriage of passenger cargo or mail for hire and reward.
“The Authority had also deployed its officials to monitor activities of private jets at terminals across the airports in Nigeria.
“As a consequence of this heightened surveillance, no fewer than three private operators have been found to be involved in violation of the annexure provision of their PNCF and Part 9114 of the Nigeria Civil Aviation Regulations 2023.
“In line with our zero tolerance for violation of regulations, the Authority has suspended the PNCF of these operators.”
Minister Festus Keyamo has urged the Nigerian College of Aviation Technology in Zaria, Kaduna State, to create new solutions that can speed up the training of skilled air traffic controllers.
This call comes as Africa anticipates a need for 4,203 new air traffic controllers by the year 2037.
The minister made this statement on Wednesday during the 34th IFATAC Africa and Middle East Regional meeting in Abuja.
Addressing the gathering, the minister noted that the goal of training 4,203 new air traffic controllers aligns with the projection from the International Civil Aviation Organization (ICAO).
He further affirmed the ministry’s commitment to offering full support to NCAT, ensuring it not only meets but surpasses its mandated duties and roles.
He said “ICAO projects that by the year 2037, Africa will require 4,203 new air traffic controllers. The onus rests on the Aviation College of Aviation Technology (NCAT) to develop innovative ideas solutions to accelerate the training of new and proficient air traffic controllers.
The minister, represented by acting director Michael Chiko from Air Safety and Administration, highlighted the rapid evolution of the air traffic control profession.
He stated “The profession of air traffic control has evolved rapidly, transitioning from simple flag signalling to sophisticated technologies. This evolution facilitates management of the surging number of aircraft traversing our
skies daily.
“As a vital, indispensable component of air safety, air traffic controllers are responsible for the safe, orderly and expeditious flow of air traffic. Therefore, I am not unaware of the critical role you play and invariably, the heavy burden you bear.
“This burden is compounded by increased air traffic, workforce shortages, technological shifts; necessitating rigorous training regimes.
“More so, with the emergence of unmanned aerial vehicles, reshaping dynamics and challenging the norm, it is thus paramount to prepare for the future and indeed Nigeria like other countries must prepare for the future.” he added
During the event, Mr. Lawrence Pwajok, representing Engr. Mohammed Odunowo, the managing director of the Nigerian Airspace Management Agency (NAMA), emphasized the relevance of the 34th IFATCA Africa and Middle East Regional meeting’s theme, titled ‘Shaping the Future: Trends and Insights On ATC Training for Tomorrow’.
Pwajok highlighted the significance of this theme, especially as air traffic control commemorates 100 years since its inception.
He suggested examining the historical perspective of air traffic control, tracing its origins from Croydon airport a century ago to its present form in modern airports like Dubai, Istanbul, JFK, Charles De Gaulle, among others.
This historical comparison aims to provide insights into the potential trajectory of the future air traffic control system over the next century.
He added “It is obvious that the future air traffic management system will be characterised by extensive application of automation, digitization and artificial intelligence.”
Festus Keyamo, the Minister of Aviation and Aerospace Development, underscored the obligation for airlines to provide compensations in cases of flight cancellations and delays.
Festus Keyamo conveyed this directive during a meeting with the heads of agencies affiliated with the ministry on Tuesday.
He said, “We are not deaf to the cries of Nigerians about delays and canceled flights. The law is there and we are looking at how to enforce those laws for compensation of Nigerians who bear the brunt of cancellation of flights and disrupting the activities.
“The process of grounding the airline or taking the airlines to court will create more problems.
“So if the reason for the delay and cancellation of flight is their fault they must pay compensation. And what I am suggesting is that if they don’t get cash back they must get some rebate when they buy next ticket.
“I have set up a committee to look into it such that they can generate a code that they can use when they want to purchase the next ticket.
“We are concerned about the passenger satisfaction and the safety of the air travelers,” he said. The minister directed the Director-General of the Nigerian Civil Aviation Authority to prepare a weekly catalogue of canceled flights.
He further instructed the Nigeria Safety Investigation Bureau to finalize investigations into all air accidents and mishaps within the upcoming 10 days.
He said: “For the recent incidents that happened recently, some minor, and others classified as serious incidents although there were no fatalities. The NSIB is investigating these incidents and I have directed them that within 10 days from today they must submit their report of the incidents and what actually transpired.” he added
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