Aviation
Boeing gets $20.7 billion worth of 737 Max commitments from China
SINGAPORE – Boeing Co (BA.N) has secured commitments for around 200 of its 737 Max aircraft, the upgraded variant of its best-selling short-haul planes, from multiple Chinese customers, said two sources familiar with the deals.
The deals are worth a combined $20.7 billion at list prices and must be approved by the Chinese government, a usual practice for aircraft orders in the country, before the customers can be identified, the sources said.
These are the first commitments for the 737 Max from China, the world’s fastest-growing airline market. Officials from both Boeing and Airbus (EAD.PA), which makes the A320 that competes with the 737, have said China is likely to overtake the United States as the world’s largest market over the next 20 years.
The commitments come from a range of customers including state-owned airlines via the national procurement agency, China Aviation Supplies Holding Company, as well as leasing firms associated with the country’s banks, the sources said.
China Aviation Supplies could not be immediately reached for comment.
Airlines such as Air China (601111.SS), China Eastern Airlines (600115.SS) and China Southern Airlines (600029.SS) are all operators of the current models of the 737 in the country.
Committing to the aircraft while waiting for the government to approve their fleet growth plans allow the airlines to secure some of the earlier delivery slots for the 737 Max, for which there have been 1,567 orders.
A Boeing spokesman declined to comment on the deal, and would only say, “discussions with customers are confidential.”
The 737 Max has been upgraded with new CFM Leap engines, and has several other enhancements that make it a more fuel-efficient aircraft than the existing models. CFM is a joint venture between GE Aviation (GE.N) and Snecma.
Boeing said in a report in August that there are 1,650 single-aisle aircraft in China, with existing orders for another 700. These fly on domestic and regional routes of up to five hours.
The planemaker also forecast that China will take delivery of 3,900 single-aisle aircraft over the next 20 years.
The 737 Max competes with the Airbus A320 neo, the re-engined variant of the European planemaker’s popular single-aisle aircraft.
Airbus said last month it has commitments for 100 A320 neo, including 60 from flag carrier Air China and 20 from leasing firm ICBC Leasing.
China is also developing its own single-aisle narrow-body aircraft, the Commercial Aircraft Corp of China (Comac) C919, to compete with the A320 and 737. The first flight has been delayed to 2015, with the deliveries not expected to begin until a few years after that.
– REUTERS
An Abuja-Accra flight experienced technical difficulties mid-air on Friday, forcing it to return to Abuja, shortly after departure.
The Nigerian Safety Investigation Board (NSIB) made the disclosure in a statement, adding that it has launched investigation into what it described as a serious accident.
Director, Public Affairs and Family Assistance, NSIB, Bimbo Olawumi Oladeji stated that preliminary investigations revealed the aircraft experienced an engine number two indication issue.
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It was gathered that the aircraft, with registration number 5NKAL which was operating a flight from the Nnamdi Azikiwe Airport, Abuja (DNAA), to Kotoka International Airport, Accra (DGAA).
She explained that four persons were onboard when the incident occurred. The crew immediately requested for a diversion back to Abuja due to the engine indication.
Oladeji added that the crew managed to safely land the aircraft at Abuja Airport at 18:16 UTC.
There were no injuries reported, and all individuals on board are safe.
Nigeria has acquired 12 pre-owned Alpha Jets from the French Air Force as part of efforts to enhance the operational capacity of the Nigerian Air Force (NAF).
The deal, facilitated through SOFEMA, a French military and aeronautics company, was announced by Olusegun Dada, Special Assistant to President Bola Tinubu on via X on Thursday.
He said, “All the 12 aircraft are ready for shipping.”
The Alpha Jet, a product of Franco-German collaboration, is a versatile military aircraft designed for light attack and advanced training missions.
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Equipped to carry bombs, rockets, and missiles, the aircraft also features a gun pod for close air support.
The NAF already operates 11 Alpha Jets, but this latest procurement signals a significant boost to its fleet.
Dada also confirmed that the Air Force is expecting 24 M-346FA light attack aircraft, ordered during the administration of former President Muhammadu Buhari.
The first batch of these Italian-made aircraft is expected to arrive early next year.
Air Chief Marshal Hasan Abubakar, the Chief of Air Staff, described the acquisitions as a testament to President Tinubu’s commitment to bolstering the armed forces.
“This renewal of our aircraft fleet reflects the government’s commitment to ensuring the safety and security of Nigerians,” Abubakar said.
The announcement comes on the heels of President Tinubu’s three-day state visit to France, where he met with French President Emmanuel Macron.
The visit, which took place from November 27 to November 30, highlighted deepening ties between the two nations.
To ensure the sustainability of its expanding fleet, the Air Force has proposed establishing a local maintenance hub.
Speaking in October, Abubakar noted that six units of the M-346FA aircraft were already in production, with the initial batch of three expected to be delivered in early 2025. The full fleet is projected to arrive by 2026.
“These developments underscore the importance of creating a domestic support system for the long-term upkeep of our aircraft,” Abubakar added.
As the holiday season draws near, Aero Contractors has introduced a minimum ticket price of N80,000 for all local flights.
The move, which will last until January 2024, aims to ease the financial burden on Nigerians amid the high cost of living.
Ado Sanusi, Managing Director of Aero Contractors, made the announcement on Tuesday during a press briefing, describing the fare reduction as a gesture to help Nigerians celebrate Christmas and the New Year without the stress of steep ticket prices.
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Sanusi said, “We understand the economic hardship Nigerians are facing, especially with high ticket prices, and we know the holiday season is nearby.
“In the spirit of Christmas, Aero Contractors has introduced what we call pocket-friendly Christmas prices. These fares, starting at N80,000, will apply to all our destinations, allowing Nigerians to travel without excessive costs.”
As of Tuesday afternoon, an economy class ticket from Lagos to Abuja was priced at N99,643, while business class tickets were being sold for N189,167.
Sanusi further explained that the initiative was designed to make it easier for families to reunite during the holidays.
“This is a way for us, as an organization with a long history of serving Nigerians, to give back to our loyal customers. We want to make it possible for families to meet their loved ones during this festive season without worrying about exorbitant travel costs,” he added.
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