Aviation
Small is the next big thing in Asia aviation
SINGAPORE – After flying under the radar for many years, manufacturers of smaller jet and propeller-driven passenger aircraft are finding a bigger market in the Asia-Pacific with a slew of orders at the Singapore Airshow.
Canada’s Bombardier (BBDb.TO), Brazil’s Embraer (EMBR3.SA), European joint venture ATR, Russia’s Sukhoi and Japan’s Mitsubishi Aircraft do not roll off the tongue as easily as Airbus (AIR.PA) or Boeing (BA.N), but in the lucrative Asia market there is room for everyone.
Embraer, the world’s largest maker of regional aircraft, forecast in Singapore this week that the region will take delivery of 1,500 new jets of 70-130 seats over the next 20 years. That translates, it says, to a staggering $70 billion worth of business.
Importantly, for the likes of Embraer, the world’s two largest aircraft manufacturers do not make aircraft that compete in the below-130 seat segment.
Low-cost airlines like AirAsia (AIRA.KL), Lion Air, and Cebu Pacific (CEB.PS), with orders for hundreds of Airbus A320s and Boeing 737s, have driven much of the growth in the Asia Pacific airline market.
Increasingly, however, the major hub airports are getting crowded and there is growing demand for services to and between smaller second and third tier cities.
“The great opportunity in Southeast Asia is to get more people to fly, and that is about tier two and tier three cities,” said Torbjorn Karlsson, who leads aircraft sales for Bombardier in Southeast Asia.
He identified countries such as India, where only about 1 percent of country’s one-billion-plus population flies, and Indonesia and Thailand as inviting markets.
COSTA SEES ENORMOUS POTENTIAL
While there may still not be enough passengers to use the A320 or a 737, there is enough for smaller aircraft. And that is where the likes of Embraer and Bombardier come in. Thousands of this type of aircraft have been sold across Europe and the Americas, but relatively few have found their way to Asia. That’s now changing.
Embraer announced its first major Indian deal in Singapore, with start-up Air Costa ordering 50 jets valued at $2.94 billion on Thursday.
In a country like India, where Airbus and Boeing aircraft have saturated the market with airlines like IndiGo, SpiceJet (SPJT.BO) and GoAir, Costa is trying to find a niche for itself by connecting the smaller cities with Embraer jets.
“”You don’t need larger aircraft. This is enough for us,” said Ramesh Lingamaneni, chairman of Air Costa, which began operations in October and now has four Embraer jets. “Regional air services have enormous potential in India.”
Bombardier did not get any orders for its CSeries or CRJ jet aircraft, but Thai low-cost carrier Nok Air NOK.BK said that it would order up to eight of the Canadian company’s Q400 turboprop aircraft.
ATR, which dominates the turboprop market, inked a deal to sell up to eight of its 72-600 aircraft to Thai carrier Bangkok Airways. It also agreed to sell 20 aircraft to leasing firm Dubai Aerospace Enterprise, with options for 20 more, in a deal valued at $1 billion.
Sukhoi displayed a Superjet in the livery of its customer, Indonesia’s Sky Aviation, on the static display at the show. Japan’s Mitsubishi Aircraft and China’s AVIC are also developing aircraft that are expected to compete in the segment, and their executives were busy trying to impress potential customers in Singapore.
“There is lots of room to penetrate more into this market,” Paulo Cesar Silva, president and CEO of Embraer Commercial Aviation, told Reuters.
“You have to have the right aircraft. In the U.S., until two years ago, Delta was flying four times a day on the Boston-La Guardia route using A320s. Now, they place the E-175 11 times a day. You keep the frequency, the load factor is high, and the passenger is happy as every time you head to the airport, there is an aircraft leaving.”
There is intense rivalry within the segment too, with turboprop operators like ATR pointing out that their aircraft are more efficient over these short-haul routes.
“I think it’s partly the economics. On this short distance route the turboprop is the most efficient aircraft. Jets burn twice as much fuel, so costs are much higher. And a lot of these airports are not accessible for jets,” ATR’s head of Global Sales, John Moore, told Reuters.
– REUTERS
The Nigeria Civil Aviation Authority (NCAA) has announced stringent measures against pilots and crew members who work for multiple airlines concurrently, a practice it describes as a serious safety violation.
In a letter dated November 6, 2024, Acting Director-General, Chris Nojomo warned that pilots operating for more than one airline without specific safety protocols pose significant risks to Nigeria’s aviation sector.
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The directive, titled “Prohibition of Ad-Hoc Flight Operators for Multiple Airlines,” noted that NCAA surveillance reports revealed multiple cases of unauthorized cross-airline work by flight crews, which the agency now plans to address.
According to the NCAA, simulator and proficiency checks endorsed on a pilot’s license are valid only for the specific airline and training program under which they were issued.
The letter stated, “With effect from the date of issuance of this directive, all operators and holders of pilot licenses are informed that this action will be treated as a violation of the Nigeria Civil Aviation Regulations.”
The NCAA’s new policy, effective November 11, 2024, warns that violators will face strict enforcement actions. Moving forward, simulator renewals will also be filed directly with individual operators, further tightening the agency’s oversight.
In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.
The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.
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At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.
He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.
The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.
“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.
Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.
Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.
Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.
Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.
Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.
Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.
Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.
Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.
Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.
Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.
He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.
Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”
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Keyamo expressed confidence that by the time his Ministry was done enlightening them, “they will be satisfied”.
He added that “the privates air strip owners pay the Federal Government handsomely for these services.”
Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.
“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.
“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.
“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.
“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.
“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.
“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.
“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.
“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.
“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”
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