Connect with us

Business News

Nigerian startup orders fifty A220 planes from Airbus, dumps Boeing 737 Max6 minutes read

“Together with Airbus, we are incredibly proud to announce the largest order ever for the A220 from the African continent,” Babawande Afolabi, Founder & CEO of Green Africa Airways

Published

on

An aircraft livery of Green Africa Airways/GAA

 A Nigerian startup airline, Green Africa Airways on Thursday announced the signing of a Memorandum of Understanding (MoU) for the purchase of 50 A220-300 aircraft from Airbus, the European planemaker, shaking the global aviation industry oncemore after a similar announcement with Boeing late 2018. 

The purchase is set to be “one of the major orders to be placed globally for the A220 programme and the largest ever from the African continent,” a statement by Airbus said in Singapore.

The new deal seemed to have knocked off a previous MoU signed with US planemaker, Boeing for the acquisition of 100 units of the B737 Max in 2018 which had received a similar media attention. The accidents recorded by the 737 max with Indonesia’s Lion Air and Ethiopian Airlines may have led to the new decision.

Airbus A220-300 – Air Baltic, take-off, starts. Air traffic, fliegen.Luftfahrt. Franz Josef Strauss Airport in Munich.Munich. | usage worldwide

“Together with Airbus, we are incredibly proud to announce the largest order ever for the A220 from the African continent,” Babawande Afolabi, Founder & CEO of Green Africa Airways said after the signing. “The Green Africa story is a story of entrepreneurial boldness, strategic foresight and an unwavering commitment to using the power of air travel to create a better future,” Afolabi said.

Speaking from the Singapore Airshow, Airbus Chief Commercial Officer, Christian Scherer said the European planemaker was “excited about the Green Africa project.”

 “We are excited about the Green Africa project, its legitimate ambition and its professionalism, evidenced by their most discerning choice for their operating assets. The unique characteristics of the A220 will allow the airline to unlock destinations and route pairs that previously would have been considered non-viable,” Scherer said.

– Green Africa building formidable airline –

The Lagos-based Green Africa Airways received its air transport license in 2018 and has been in the process of obtaining an air operator’s certificate with plans to operate within Nigeria and build a pan-African network.

The start up had in mid-2018 completed its series-A round of financing with Kuramo Capital, a pan-African independent investment management group based in New York, aviation sources close to the management said.

Green Africa’s founder and chief executive, Afolabi had in 2018 said the airline was looking to “building a world-class airline that will unlock a new realm of positive possibilities for millions of customers.” He said it was “a bold symbol of the dynamism, resilience and soaring entrepreneurial drive of the next generation of Nigerians and Africans.”

Babawande Afolabi, Founder & CEO of Green Africa Airways

 “The A220 is the only aircraft purpose-built for the 100-150 seat market; it delivers unbeatable fuel efficiency and widebody passenger comfort in a single-aisle aircraft,” the joint statement by Airbus and Green Africa announced on Thursday.

The new airline settled for the A220 because it “brings together state-of-the-art aerodynamics, advanced materials and Pratt & Whitney’s latest-generation PW1500G geared turbofan engines to offer at least 20 percent lower fuel burn per seat with significantly lower emissions and a reduced noise footprint,” officials said compared to previous generation of aircraft.

The A220 offers the performance of larger single-aisle aircraft. At the end of January 2020, the A220 had accumulated 658 orders.

Boeing 737 MAX airplanes are parked at Grant County International Airport October 23, 2019 in Moses Lake, Washington. Boeing reported that its profits were down by more than half in the latest quarter. The company has finished updates and testing on the 737 MAX and plans to have the planes flying by the end of the year. David Ryder/Getty Images/AFP

– Boeing 737Max crisis –

The African aviation industry had anticipated that Green Africa Airways would begin operation from 2019 to ease the difficulties in the Nigerian and African aviation market but experts said the disasters that affected Boeing last year could have also affected the earlier order for the B737 Max aircrafts.

Many previous orders for the B737 Max had been suspended or cancelled globally due to the grounding of the aircraft model by US aviation authorities after the Lion Air and Ethiopian Airlines crashes that led to a turmoil for the US planemaker last year.

The ordering of 100 Boeing 737 Max 8 jets valued at $11.7 billion at list prices, tentative deal for 50 aircraft plus 50 options “has the potential to be the biggest purchase by an African carrier,” Boeing had said in 2018.

– Global aviation crisis hits Boeing –

At the time the 737 Max was announced in 2011 and entered service in 2017, the plane was touted as the next generation of a tried-and-tested workhorse of consumer aviation, experts said, but the aircraft model has had a troubled existence that culminated in 2 fatal crashes just 5 months apart that raised eyebrows globally and made passengers to be scared of entering the aircraft.

The Boeing 737 Max was designed to have more fuel-efficient engines and updated avionics and cabins with longer range and lower operating cost.

It had enough specs in common with previous 737 models so that pilots could switch back and forth between the two with ease, unfortunately, that became its albatross as many pilots could not handle such issues due to poor training, supplies and kits by the manufacturer and airlines.

Two fatal crashes involving the plane within five months of each other killed a combined 346 people and led to several questions and inquiries about the plane’s design and features meant to make it easier for pilots to fly.

The crashes also called attention to training standards, regulatory oversight, and pilot experience.

(L-R) Diana Sotomyor, Hayley Freedman and Deveney Williams, friends of Samya Stumo, who was killed when Ethiopian Airlines Flight ET302 crashed in Ethiopia, listen to testimony during a House Transportation and Infrastructure Committee hearing on Capitol Hill June 19, 2019 in Washington, DC. The committee heard testimony from officials in the airline industry regarding the status of the grounded Boeing 737 MAX. Mark Wilson/Getty Images/AFP

Since the second crash in March, the plane has been grounded around the world as Boeing works to fix what appears to be a fundamental design flaw.

“I will look at it and get back to you,”Oyinade Sobajo, Senior Manager, Digital and Communications at Green Africa Airways told News Central on phone after an earlier text message requesting information to know if the Boeing 737 Max orders were still being expected or the MoU had been cancelled due to the grounding of the aircraft model. The reply was yet to be sent hours after the request, despite reminders.

Copyright News Central

All rights reserved. This post and other digital content on this website may not be reproduced, published, broadcasted, rewritten or redistributed in whole or in part without prior express written permission from News Central.

Tell your story the right way

Have you witnessed a news worthy event? Want to become our citizen journalist and tell your own stories?

Send your stories to us or contact us via:
Email: Click to email us
Social media: Twitter and Facebook @NewsCentralTV
WhatsApp: Text or call +234 901 190 0000 .

New stories delivered to your phone

Click here to have news stories delivered to your phone or mail. You can also share your stories with us. Join our mailing list here.

Continue Reading
Click to comment

Leave a Reply

Business News

South Africa Unions Reject Government Plan to Review Pay

Published

on

The South African labour unions have rejected a government proposal to review planned increases for civil servants days before they were due to be implemented.


The Public Servants Association, which represents 230,000 government workers, says the state has asked to review the last leg of a three-year pay agreement because it couldn’t afford it.


The Public Servants Association says the timing of the proposal, a few days before the adjustments were due to be implemented, speaks of a government that regards public servants as an easy target to resolve its financial woes.


The Central Executive Committee of the Congress of South African Trade Unions, the country’s biggest labor federation, says if the proposal made its way into the budget speech it will be seen as a declaration of war.

Copyright News Central

All rights reserved. This post and other digital content on this website may not be reproduced, published, broadcasted, rewritten or redistributed in whole or in part without prior express written permission from News Central.

Tell your story the right way

Have you witnessed a news worthy event? Want to become our citizen journalist and tell your own stories?

Send your stories to us or contact us via:
Email: Click to email us
Social media: Twitter and Facebook @NewsCentralTV
WhatsApp: Text or call +234 901 190 0000 .

New stories delivered to your phone

Click here to have news stories delivered to your phone or mail. You can also share your stories with us. Join our mailing list here.

Continue Reading

Business News

South Africa Raises $1.1 Billion Bailout for Ailing Airways

Published

on

South Africa has almost doubled its funding for the national airline to 16.4 billion rand ($1.1 billion), cash which will go towards supporting a restructuring plan for the almost insolvent carrier.


The bailout will be used to service and pay debt previously guaranteed by the state over the “medium term,” according to the country’s Finance Minister, Tito Mboweni.


This amount compares with 9.2 billion rand earmarked for South African Airways in October.


SAA has been a drain on the National Treasury for several years racking up losses of more than R32 billion over the past decade.
Late last year, the government placed the airline on a local form of bankruptcy protection, and administrators have set about reducing costs by closing routes and considering asset sale.
However, the Finance Minister has often stated his reluctance to support SAA while faced with bigger problems such as the $30 billion of debt owed by state-owned power utility Eskom Holdings.


In addition to Treasury funds, SAA was last month, given access to R3.5 billion from the state-owned Development Bank of Southern Africa.

Copyright News Central

All rights reserved. This post and other digital content on this website may not be reproduced, published, broadcasted, rewritten or redistributed in whole or in part without prior express written permission from News Central.

Tell your story the right way

Have you witnessed a news worthy event? Want to become our citizen journalist and tell your own stories?

Send your stories to us or contact us via:
Email: Click to email us
Social media: Twitter and Facebook @NewsCentralTV
WhatsApp: Text or call +234 901 190 0000 .

New stories delivered to your phone

Click here to have news stories delivered to your phone or mail. You can also share your stories with us. Join our mailing list here.

Continue Reading

Business News

South Africa to Establish $2 Billion Sovereign Wealth Fund

Published

on

South Africa has announced that it will use money from the sale of broadband spectrum and mining royalties to establish a 30 billion-rand ($2 billion) sovereign wealth fund, according to the country’s Finance Minister,Tito Mboweni.


Its establishment was first mooted at least 10 years ago.
The proposed fund comes at a time when Africa’s most industrialised economy is struggling to contain rising debt amid sluggish economic growth and a budget deficit projected to widen to a near three-decade high of 6.8% in the coming fiscal year.


Mboweni says the legislative framework for the fund will be submitted to the parliament.


Funding will come from the government’s plans to sell broadband spectrum this year, along with royalties from petroleum, gas and mineral rights, as well as the sale of non-core assets, future surpluses and savings.


The government is also pressing ahead with plans to form a state bank that will operate as a retail financial institution premised on commercial principles, he said.


However, the Reserve Bank is yet to grant the proposed lender an operating license.

Copyright News Central

All rights reserved. This post and other digital content on this website may not be reproduced, published, broadcasted, rewritten or redistributed in whole or in part without prior express written permission from News Central.

Tell your story the right way

Have you witnessed a news worthy event? Want to become our citizen journalist and tell your own stories?

Send your stories to us or contact us via:
Email: Click to email us
Social media: Twitter and Facebook @NewsCentralTV
WhatsApp: Text or call +234 901 190 0000 .

New stories delivered to your phone

Click here to have news stories delivered to your phone or mail. You can also share your stories with us. Join our mailing list here.

Continue Reading

Trending