Aviation
Gulf airlines splash out over $150 billion as Boeing launches new jet
DUBAI – Gulf airlines splashed out over $150 billion on new plane deals on day one of the Dubai Airshow, underscoring a shift in power in the aviation industry and giving a boost to the formal launch of Boeing’s newest jet, as well as to Airbus’s A380 superjumbo.
Under hazy skies, sheikhs and ruling family members of Dubai and neighboring Abu Dhabi toured rows of passenger jets and arms pavilions at the new 645,000 square meter venue, built to showcase the Middle East’s largest aviation hub and take on the industry’s traditional showcase events in Britain and France.
Dubai-based Emirates led the buying spree on Sunday with an order for 150 of Boeing’s new 777 mini-jumbo, in a deal worth $76 billion at list prices. It also ordered 50 Airbus A380s, the world’s biggest passenger plane, worth $23 billion.
With demand from other Gulf carriers including Etihad Airways and Qatar Airways, Boeing announced commitments for a total of 259 of the new 777 jet, previously codenamed 777X, worth about $100 billion at list prices – the largest combined order in its history and confirming earlier Reuters stories.
“The response to the 777X has been astounding,” Boeing Chairman James McNerney said at a packed news conference to officially launch the new plane, in front of Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum.
Gulf airlines are competing with each other for a share of traffic flooding through the region due to its growing prosperity and strategic location between East and West. And with many recession-hit European airlines strapped for cash, Gulf business is increasingly important to Boeing and Airbus.
The revamped 777 marks a new front in the battle between the two aircraft manufacturers that dominate the civil aviation industry. Boeing’s new plane is aimed at heading off competition from the largest version of Airbus’s A350 in the mini-jumbo market that drives growth and connectivity between continents.
Boeing pledged not to let a dispute with Seattle assembly workers over where the new 777 should be built interfere with its launch, which kicked off the November 17-21 Dubai show.
The U.S. group is looking for a home for the new jet after members of the International Association of Machinists rejected a proposed contract that would have seen Boeing commit to keeping the latest member of the 777 series near Seattle in exchange for restructured benefits.
BOOST FOR THE A380
With Boeing also agreeing deals for 30 of its 787 Dreamliners with Etihad and for over 100 of its 737 planes with budget carrier flydubai, the U.S. manufacturer looked on course to defeat Airbus in the battle for orders at the Dubai show.
However, as well as the order from Emirates, Airbus announced a deal for 87 aircraft with Etihad which, including options for 30 more, could be worth $26.9 billion.
The European group also has a record of springing surprises, and is keen to prevent a smooth lift-off for the new 777.
“Airbus is desperate to blunt the impact of the 777X,” said a senior industry source, speaking on condition of anonymity.
Emirates’ A380 order was something of a coup for Airbus, which is under pressure to revive the fortunes of a plane that previously hadn’t found any buyers this year and faces a cut in output unless empty 2015 production slots can be filled.
Emirates is already the biggest customer of the A380 and its order for 50 more was at the top end of expectations, and brings its total orders for the plane to 140.
In a sign of the Gulf’s increasing power in the industry, Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum said he was confident of a shift in stance in the West that would allow the group to fly more of its planes to airports there.
“We are buying a product from their countries. So why would they not allow us to fly to these airports? If they don’t, they can take their planes back,” he said.
A group representing U.S. airline pilots, meanwhile, warned that the sale of hundreds of planes to Gulf carriers that compete with U.S. carriers would have “serious consequences for the U.S. economy and U.S. airline workers.”
MINI-JUMBO BATTLE
Boeing’s new 777 comes in two models including what will be the world’s longest-distance passenger jet, a 350-seat model to be known as the 777-8 once the aircraft has been launched.
The larger 777-9 edition, carrying 406 people, will be the main version and be delivered starting 2020.
Together, the modernized planes call for development of carbon-fiber wings that fold at the tips to fit in the same parking spaces and new engines from General Electric.
Airbus says Boeing has packed in passengers densely to make the revamped aircraft’s economics work against its own all-new 350-seat model, the A350-1000, due to enter service in 2017.
It has launched a campaign for a minimum standard seat width of 18 inches on long trips, aiming to draw attention to what it says will be the 777’s narrower seats.
Some airlines have told Airbus that this is their decision and Boeing says many Airbus jets have similar seats.
Highlighting defense deals also at stake at the November 17-21 air show, UK Prime Minister David Cameron toured the complex even before the event had started, telling the heads of British aerospace and defense companies to “get out there and win”.
Britain is competing with France for a potential 60-plane fighter jet deal with the United Arab Emirates.
– REUTERS
Aviation
Shell Endorses Regional Action Plan for Safe Helicopter Services
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has welcomed efforts to promote safe helicopter services across Africa in a proposed Regional Action Plan (RAP).
The plan, according to a company statement, is the highlight of a workshop organised in Lagos within the week by the Aviation subcommittee of the International Association of Oil and Gas Producers (IOGP) in partnership with London-based safety advocacy group, HeliOffshore.
Biztellers reports that the two-day Offshore Helicopter Industry Safety Workshop (OHISW) with the theme “Developing a Regional Action Plan,” followed on from a similar session last year which SNEPCo sponsored.
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It also provided administrative and logistical support for this year’s conference which was sponsored by ExxonMobil. SNEPCo, which pioneered Nigeria’s deepwater production at Bonga in 2005, relies on helicopter shuttles for operations and supports the workshop as part of its contributions towards safe services in Nigeria.
In an address at the opening session delivered by General Manager Contracting and Supply Chain, Charles Oranyeli, Managing Director SNEPCo, Ronald Adams said: “By developing a regional action plan, we can move beyond dialogue to alignment, ensuring that the safety leadership, industry standards, and collaborative approaches championed last year are embedded in a common roadmap for collective improvement. The most effective solutions will come not from isolated efforts, but from partnership, standardization, and coordinated action across the region.”
The workshop was attended by more than 80 representatives from oil and gas companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigeria Civil Aviation Authority (NCAA), the Nigerian Safety Investigation Bureau (NSIB), helicopter operators and original equipment manufacturers.
The event concluded with participants deciding action items for the proposed Regional Action Plan including Search and Rescue (SAR) initiatives, implementation of IOGP Report 690 standards and establishment of formal industry leadership forums.
The IOGP has been active for over 50 years, supporting its more than 90 members around the world to promote “excellence in safe, efficient and sustainable energy.”
Aviation
Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%
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.
Aviation
Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight
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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