Aircraft manufacturers seek market dominance in frontier markets

Original Equipment Manufacturers (OEM) Airbus Corporation, the Boeing Company and Embraer  Regional Jets are reworking their market expansion plans to outpace one another to meet delivery schedules with airlines, which have placed orders in the last few years.

The move to establish who controls  frontier markets is coming on the heels of evolving trends by global carriers, including airlines in Nigeria in the choice of aircraft type/model they have in the fleet.

Investigations show that carriers are looking in the direction of the choice of equipment – airplanes – which will bring about a significant dip in the cost of operations, determined by fuel consumption rate, evolving technology in avionics, environmental sustainability considerations and the number of seats in the cabin configuration.

To cash in on this consideration, investigations indicate that aircraft manufacturing companies are not exploring strategies to make their products endearing to airlines, latching onto flexible conditions of acquisition – lease options which are either dry, wet or damp/operational.

Experts said Airbus may be leading the pack, with the latest figures, indicating higher delivery of airplanes to airlines, including Nigerian carriers in the last few months compared to its long-running rival Boeing, which has been grappling with myriad of concerns bordering on its equipment in the last few years.

Also, investigations show that though Boeing has the number of aircraft in the fleet of Nigerian carriers, its rivals, Airbus and Embraer, are inching towards a takeover.

A few years ago, Air Peace placed an order for 10 Boeing Max aircraft, the crash involving the aircraft model in the fleet of Ethiopian Airlines and other safety related concerns seem to have put a hold on the expected delivery of the airplane type.

Other carriers:  Max Air, Azman AIr, Dana Air, Arik Air, AeroContractors Airlines, which placed orders for Boeing aircraft , are not optimistic when delivery will be made.

But, rival airplane maker, Airbus Corporation is inching deeper into the African/Nigerian market with State – run carrier : Ibom Air placing order for 10 airbus aircraft, part of which delivery has begun.

Airbus, it was learnt is penetrating the Nigerian market with ongoing discussions with the Federal Government to partner indigenous carriers for fleet renewal / expansion.

Investigations reveal that indigenous carriers are looking in the direction of Airbus airplanes, because of its evolving cutting edge technology in avionics, the fuel efficient factor, as the carriers are not leaving anything to chance to settle for options that will bring about a drastic dip in the cost of operations.

Some of the aircraft manufacturers, investigations reveal are also exploring the setting up of aircraft maintenance/repair facilities in Nigeria to drive patronage for their equipment.

These considerations, investigations further revealed, may have triggered the spike in the ordering of Embraer Regional Jets by Air Peace, United Nigeria Airlines, Overland Airways and other carriers.

Sources hinted that Airbus is on the verge of sealing a deal with the Akwa Ibom State Government for fixing of airplanes at the Maintenance and Repair Overhaul (MRO), facility at the Victor Attah International Airport in Uyo, the State’s capital.

Global industry data indicate that Airbus  is cementing its position  as the world’s biggest plane maker for the fifth  year running as it last week said  it had delivered more aircraft and secured more orders than Boeing in 2023.

The disclosure by Airbus is coming at a time when its rival  Boeing is  trying to put out a huge enlightenment on the safety crisis caused by a near disaster involving its 737 Max line of airliners.

In the long-running duel between the two aviation rivals, experts say Airbus appears to be  pulling  far ahead.

Speaking in an interview, Managing Director of AeroDynamics Advisory , Richard Aboulafia said :” What used to be a duopoly has become two-thirds Airbus, one-third Boeing.

“A lot of people, whether investors, financiers or customers, are looking at Airbus.”

According to the 2023 Airbus Global Market Forecast (GMF), airlines serving Nigeria will require approximately 160 passenger and freight aircraft by 2042. This includes 131 single-aisle aircraft like the A220 and A320 families, along with 28 widebody aircraft such as the A330 and A350 families, all aimed at serving the burgeoning Nigerian market.

The Airbus GMF also predicts that the growth of the aviation sector in Africa will result in an annual increase in services demand by 4.1 per cent , soaring from $2 billion to $7 billion. A pivotal element in this growth, experts say, is the expansion of Maintenance Repair & Overhaul (MRO) services at local and regional levels. By enhancing MRO capabilities, experts say  Nigeria can generate additional revenues, reduce aircraft maintenance costs, and create numerous job opportunities, further contributing to skills development in the nation and across the continent.

As the aerospace industry in Nigeria and Africa at large continues to expand and diversify, experts say there is a growing demand for specialized skills, opening up thousands of new opportunities for young people on the continent. Already, the industry, according to global statistics, has created an estimated 7.7 million direct and indirect jobs in Africa. Airbus forecasts an additional demand for 17,000 technicians, 14,000 pilots, and 23,000 cabin crew positions across Africa over the next two decades.

To meet this demand and ensure the retention of talent, experts have  canvassed  regional cooperation and cross-country licensing, which they say  remain  crucial. Government-private sector partnerships and the establishment of training academies, they insist  are equally essential in building a sustainable aerospace industry in Africa.

On a continental scale, Airbus anticipates that by 2042, Africa will require 1,180 new aircraft, consisting of 295 widebody and 885 single-aisle aircraft. This transition, the aircraft maker said, will see fleets in the region adopting new-generation aircraft like the A220, A320neo family, A330neo, and A350, resulting in significant efficiency improvements and reduced carbon emissions per passenger.

Over the past decade, Africa has made substantial strides in aviation, including the establishment of the Single African Air Transport Market (SAATM) and fleet modernization efforts by national airlines. Currently, there are 265 Airbus commercial jetliners operated by 36 carriers in Africa. Airlines such as Ethiopian Airlines, Ibom Air, Air Senegal, South African Airways, Air Côte d’Ivoire, Egypt Air, Uganda Airlines, and Air Tanzania have embraced advanced Airbus aircraft like the A350, A330neo, A320neo, and the A220, showcasing Africa’s commitment to technological advancement in aviation.