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Brazil Snubs Boeing in Fighter Jet Deal

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SÃO PAULO — In a disappointment for Boeing, Brazilian defense officials said on Wednesday that they had picked the aircraft maker Saab for a $4.5 billion contract to build 36 fighter jets over the next 10 years.

 

The Brazilian defense minister, Celso Amorim, told reporters at a news conference in Brasilia that Saab was selected over Boeing because it had agreed to share more technology with contractors and because many parts for the new jet, the Gripen NG, would be made in Brazil.

The decision “took into account performance, the effective transfer of technology and costs, not only of acquisition, but also of maintenance,” Mr. Amorim said in a statement. He was accompanied by Gen. Juniti Saito, the Brazilian air force’s chief of staff. “The decision was based on these three factors.”

The announcement comes at a time of heightened tension between the United States and Brazil. In September, the Brazilian president, Dilma Rousseff, canceled a state visit to the United States after revelations that the National Security Agency was spying on foreign heads of state, including her.

In a speech at the United Nations that month, Ms. Rousseff gave a blistering attack on the United States for its “illegal interception of information and data.”

In a response to the outcry over the spying, a panel of advisers for President Obama on Wednesday recommended limiting the wide-ranging collection of personal data and restricting operations to spy on foreign leaders.

When asked at the news conference if the spying had anything to do with the decision to award the contract to Saab, Mr. Amorim did not answer directly, instead repeating reasons of cost and technology sharing.

Analysts said Brazil had many financial and practical reasons to award the contract to Saab.

Richard L. Aboulafia, an aviation analyst at Teal Group in Fairfax, Va., said that while Brazil’s disenchantment over the N.S.A.’s spying could have played a role in the decision, costs were probably a bigger factor.

“You’re talking about a military service that doesn’t need a heavyweight front-line fighter and has suffered a budget squeeze and hasn’t been able to fly the planes that it owns,” he said.

He added that a basic version of the Saab jet might cost about $45 million, compared with $55 million for Boeing’s basic F/A-18 Super Hornet.

And the Gripen’s fuel costs would be half of that for the Boeing plane. Both jets use the same engine, but the Super Hornet has two engines and the Gripen one.

A study by the military publisher IHS Jane’s said that the Gripen costs about $4,700 an hour to fly — the lowest among modern fighter jets — compared with the $11,000 for the Super Hornet.

Boeing said that the decision was “disappointing” and that it would talk to the Brazilian air force to better understand it. The company, based in Chicago, said it would still look for chances to expand its partnerships in Brazil.

The loss was also difficult for Boeing because there are only a few fighter competitions going on around the world and the United States Navy plans to stop buying the F/A-18’s.

While most countries that want high-tech fighters are buying Lockheed Martin’s more advanced F-35, many other countries cannot afford even top older models like the F/A-18. So far, Australia is Boeing’s only export customer for the jet.

By contrast, Saab’s more workaday Gripen models are flown by several other countries.

Brazil originally began its quest for new fighters to replace its aging Mirages more than a decade ago. Brazil’s former president, Luiz Inácio Lula da Silva, wanted to buy Dassault’s Rafale fighter jets in 2009 instead of the F/A-18.

But a change in administration in Brazil, and the country’s deteriorating financial condition, helped alter the equation. A Brazilian news report on Saturday said that Dassault had already been eliminated from the competition even though the French president, François Hollande, backed the jet on a visit to Brazil last week.

Terms of the deal must still be negotiated over the next year, but delivery of the first batch of Gripen NG jets is expected in 2018.

Also on Wednesday, Boeing announced the promotion of Dennis A. Muilenburg, the head of its military business, to vice chairman, president and chief operating officer of the company.

Analysts said that move made Mr. Muilenburg, 49, the heir apparent to Boeing’s chief executive, W. James McNerney Jr., who is 64.

Ray Conner, the chief executive of Boeing’s commercial airplane division, was also named a Boeing vice chairman while keeping his current responsibilities. Christopher M. Chadwick, 53, will succeed Mr. Muilenburg as chief executive of Boeing’s military unit.

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Aviation

Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%

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The Airline Operators of Nigeria (AON) has declared that airlines operating in Nigeria have come under financial pressure following a sharp increase in the price of Jet-A1, also known as aviation fuel.

According to the group, the price of aviation fuel, has surged to about N1,800 per litre in many parts of the country, from about N1,000 per litre two weeks ago. This amounts to almost an 80 per cent increase within a short period.

Aviation fuel remains the largest cost component in airline operations, accounting for about 30 to 35 per cent of total operating expenses.

Industry stakeholders have linked the latest spike to the ongoing conflict in the Middle East, which has pushed up global energy prices.

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Speaking on Channels Television on Friday, the spokesperson for the Airline Operators of Nigeria, Prof Obiora Okonkwo, said the surge had placed airlines under severe financial strain.

According to him, most carriers have so far refrained from immediately transferring the additional cost burden to passengers, despite the pressure on their operations.

“Two weeks ago, we were getting Jet-A1 at about N1,000 per litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike,” Okonkwo said.
He explained that airlines were currently absorbing the losses in order to avoid worsening the economic burden on the travellers.

“We are not in a business where you can easily adjust your ticket price. Right now what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.

Okonkwo warned that the situation might not be sustainable if fuel prices continue to rise without government intervention.

“Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he added.

He noted that developments in the global oil market, particularly the recent release of reserve crude oil, could influence fuel prices in the coming weeks.

Okonkwo also urged the Federal Government to explore engagement with the Dangote Refinery as part of efforts to stabilise aviation fuel supply locally.

“We were more hopeless in a situation where there was no refinery in Nigeria in the last two years. Now that we have a refinery, we are hopeful that we can find a solution around it,” he said.

According to him, if the spike persists, some airlines may struggle to continue absorbing the losses associated with the rising cost of aviation fuel.

Meanwhile, the AON spokesperson also reacted to the decision by the Federal Competition and Consumer Protection Commission to sanction about five airlines over alleged price fixing.

Okonkwo said while the commission has regulatory powers, the aviation sector remains deregulated, making coordinated price fixing unlikely.

“There is no meeting of airlines where they agree to fix prices. Fixing prices would mean operating as a cartel, and that is not the case,” he said.

He explained that airline ticket pricing varies widely because different aircraft types attract different operating costs.

“Each airline determines its fares based on its own operational costs,” he said.

Okonkwo added that airlines must also demonstrate financial viability to regulators as part of the conditions for maintaining their operating licences.

“At every point in time, you must prove to the regulators that you are financially viable and capable of sustaining operations,” he said.

He urged regulators to take into account the fragile nature of the aviation industry when making policy decisions affecting airlines.

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Aviation

Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight

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An Air Peace flight from Lagos to Port Harcourt has suffered a disruption, after the aircraft was affected by a bird strike on arrival at the Port Harcourt International Airport.

The airline made the disclosure on Thursday in a statement signed by its spokesperson, Osifo-Whiskey Efe.

He added that the incident necessitated safety checks on the affected aircraft and the deployment of another aircraft to convey passengers on subsequent flights.

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“We deeply empathise with passengers affected by this unforeseen incident and are working diligently to minimise disruptions,” Efe said.

The latest incident adds to the growing challenge of bird strikes faced by local airlines.
In December 2025, Air Peace disclosed that it recorded 49 bird strikes across Nigeria between January and September, stressing that even a single strike could ground an aircraft for weeks.

Chairman and Chief Executive Officer of the airline, Allen Onyema, had said on Arise TV that bird strikes constituted a major operational challenge, often leading to costly repairs and serious disruptions to flight schedules.

“One bird strike could cripple your aircraft for the next month. At that moment, there is no two ways about it. These bird strikes often lead to costly delays and serious disruptions in flight schedules,” he said.

He added that losses from such incidents compound other challenges facing Nigerian airlines, including heavy taxation and operational constraints.

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Aviation

HURIWA Saddened at 131% Surge in Air Peace, United Nigeria Airfares to Southeast

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With the firm belief that it is both sadistic and absolutely despicable, the recently announced outrageous hike in airfares to South East from Abuja to Lagos for Yuletide of 2025 by over 131 percent by Air Peace and United Nigeria Airlines, the owners have been asked to immediately have a rethink and review backward these harsh, toxic and unfriendly airfares targeting Igbo passengers exclusively.

Making the charge to the chairmen of Air Peace and United Nigeria airlines, Mr. Allen Ugochukwu and Mr. Obiora Okonkwo, the prominent civil rights advocacy group, Human Rights Writers Association of Nigeria (HURIWA) expressed anger that these businesses whose proprietors are Igbo by birth are fond of making it so difficult for hundreds of thousands of Igbo passengers residing outside of the South-East to travel home on Christmas festivities.

The rights group say that for many years now, because Air Peace and United Nigeria Airlines are monopolies and then Igbos have the tradition exclusively in Nigeria of going home to South East from all over the globe during Yuletides, these few airlines have decidedly fixed toxic ticketing airfares for Igbos whereas northerners who also travel during their religious festivities of salah are not subjected to such exploitative treatments.

The HURIWA accused the two airlines of price fixing, which is anti-competition just as the Rights group said it is giving these two Igbo-hating airlines to review backward their toxic and discriminatory airfares within ten working days from today or it will petition the federal government publicly funding consumer rights body[Federal Competition and Consumer Rights Commission) in Abuja.

The HURIWA wonders if these Igbo owners of private airlines known for making their planes available to government for free during emergencies are in a conspiratorial plots with haters of Igbo land who are unhappy at the convivial and happy atmospheres in the South East during Yuletide, just as the rights group has appealed to Igbo governors to immediately intervene and urge Mr. Allen Ugochukwu and Mr Obiora Okonkwo to treat the Igbo just as they treat for instance northern Muslims who also migrate home to northern Nigeria from around the globe during their Muslim festivities because what is good for the goose, is good for the gander.

The HURIWA said that if Air Peace Airlines have gotten involved in many humanitarian efforts of airlifting Nigerians from outside of our shores for free, it becomes of the Airline ought not to maltreat their clients of Igbo extraction.

The HURIWA quoted from the business official website of Air Peace in which it described its latest humanitarian effort to be an addition to a growing list of interventions by Dr. Allen Onyema and Air Peace.

Quoting Air Peace website, HURIWA stated that Air Peace said thus: “In 2019, the airline airlifted 503 Nigerians free of charge from South Africa amidst xenophobic attacks. During the COVID-19 pandemic in 2020, Air Peace conducted multiple repatriation flights. In 2022, the airline flew Nigerian evacuees out of war-torn Ukraine. In May 2023, Dr. Onyema again deployed Air Peace aircraft to evacuate 277 stranded Nigerians from Sudan.

As the rescued women prepare to begin a new chapter, supported by medical care and reintegration efforts, one truth stands out: Air Peace is more than just an airline — it is a bridge of hope for Nigerians in crisis, and a national symbol of empathy, courage and service,” HURIWA conclusively quoted Air Peace.

The HURIWA therefore strongly condemns the two airlines for hiking and fixing unaffordable airfares indiscriminately against Igbo passengers, even as the festive season draws near, Air Peace and United Nigeria Airlines have raised their return ticket fares to N677,000, a move that could add financial strain on travellers. The rise in airfares reflects the high demand expected during the holiday rush.

Key Points

Air Peace and United Nigeria increase return ticket fares to N677,000 for the yuletide season.

Airfares on routes to the South-East, including Enugu and Anambra, experience the highest surge.

Ibom Air offers comparatively cheaper tickets, with return fares at N381,600.

Air Peace’s one-way fare for December to January peaks at N350,500.

United Nigeria will also charge N350,500 for select routes between December 11 and the end of the year.

Northern routes, including Lagos-Kano, face smaller increases, with fares starting from N106,900.

Experts predict even higher airfares, with one-way tickets possibly reaching N500,000.

The rise in flight prices signals the start of a challenging holiday travel season, with airfares higher than usual due to increased demand. Travelers must be prepared for the surge, with some routes seeing even higher fare projections.

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The HURIWA is hereby warning the two airlines to withdraw their price fixing malpractices against Igbos or else the Rights group would seek justice and redress for the millions of Igbos who would return home for the 2025 Yuletide from the Federal Competition and Consumer Rights Commission and the National Human Rights Commission of Nigeria. The HURIWA threatened to drag the two airlines to the Nigerian President through the Honourable Minister of Aviation and Transportation.

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