Aviation
Qatar, Emirates Joined Forces on Boeing Order
DUBAI—Qatar Airways and Emirates Airline said they joined forces to negotiate with Boeing Co. BA for almost $100 billion in deals they signed for the new 777X passenger jet, a first for the carriers that further underscores the shift in power in the aviation industry to the Middle East.
The combined effort is the first time the two Persian Gulf carriers—the two biggest airlines by passenger numbers in the region—have collectively pushed for better terms from an airline manufacturer, sharing information to ensure the new plane meets performance specifications to attract a maximum amount of orders at its launch.
It won’t be the last, said Akbar Al Baker, chief executive of Qatar Airways.
“When you negotiate with a supplier, you get the benefit of economies of scale, and we negotiate together,” Mr. Al Baker told reporters at the Dubai Airshow. “It has been a very successful negotiation for both of us.”
Ensuring a maximum number of planes are ordered at the launch of a new aircraft is vital to helping reduce the project’s risks and costs through the guarantee of a long production run. Those economies of scale allow aircraft makers to offer discounts on list prices to the first airlines that sign up without, in theory, sacrificing their own margins unnecessarily.
What is new for Boeing and its arch-rival Airbus is the sheer scale of orders for new aircraft from the fast-growing Persian Gulf airlines.
“What we’re seeing, however, is a change in the balance of power,” said Peter Morris, chief economist at aviation consultants Ascend. Orders for 100 or more wide-body, long-distance jets are “unthinkable” for established developed-world carriers, Mr. Morris said.
“Clearly [the Middle East airlines are] putting their money on the table and they will almost certainly be getting significant benefits from manufacturers in the form of discounts or support agreements, guarantees,” he said. The airlines are also locking in technological advances the plane makers have promised for themselves because future customers will have to wait years for any planes they order to be delivered.
Emirates Sunday placed a $76 billion order with Boeing at the Dubai Airshow, agreeing to buy 150 of the manufacturer’s new 777X aircraft, helping make the model the largest product launch in commercial jetliner history for the U.S. plane maker. Emirates, which is the world’s largest international airline by capacity, also said it had purchase rights for a further 50 777X.
Qatar Airways was also a launch customer for the revamped 777 jet, placing an order for 50 aircraft worth $19 billion.
A spokesperson for Emirates confirmed that the two airlines had negotiated jointly on the 777X order.
Deutsche Lufthansa also shared technical information as one of the 777X launch customers to ensure its performance specifications were met, an airline spokesman said. Lufthansa plans to order 34 of the shorter-range 777-9X version of Boeing’s new jet.
Mr. Al Baker said the airlines wouldn’t negotiate together every time for aircraft, but would hope to do it again with a similar program with either Airbus or Boeing.
“We both can exchange technical information, performance information and then go together to Boeing to address those issues,” said Mr. Al Baker, declining to comment on which airline initiated the process to negotiate together.
Etihad Airways, which was also a launch customer and bought 25 777X jets, wasn’t part of the negotiations, he added.
Boeing said it doesn’t comment on customer negotiations.
– WALL STREET JOURNAL
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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