Business |
Fleet Order
Record-breaking dollar value order is another milestone for Emirates and affirms strategy to expand long haul destinations and continue to excel as a world leading carrier
Emirates Places $18-billion Boeing Order at Air Show and three freighters. Emirates had 40 777-300 ERs already on the order books, so with November’s order that now stands at a firm order of 90 777-300 ERs. Sheikh Ahmed bin Saeed AlMaktoum, Chairman and Chief Executive, Emirates Airline and Group, and Jim Albaugh, President and CEO of Boeing Commercial Airplanes, signed the agreement during a ceremony at the Dubai Air Show. Emirates senior executives Tim Clark, President, Emirates airline and Adel Al-Redha, Emirates Executive Vice President, Engineering and Operations as well as David Joyce, President and Chief Executive Officer of GE Aviation, were also present at the signing ceremony.
Proud Moment DEAL SEALED: Sheikh Mohammed bin Rashid AlMaktoum (centre, standing), VicePresident and Prime Minister of the UAE and ruler of Dubai, looks on as Emirates, Boeing and GE Aviation officials take part in a signing ceremony at the Dubai Airshow.
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mirates Airline placed a $18 billion (AED66 billion) order for 50 Boeing 777s, the US aircraft maker’s largest biggest-ever single order in dollar terms, at the Dubai Air Show mid-November. The order also included 20 777300 ER options valued at $8 billion for a total of 70 aircraft valued at $26 billion. This record-breaking long-range aircraft order adds to Emirates’ existing world’s largest fleet of 95 777s in service, including nine 200 ERs, 10-200 LRs, 12-300s, 61-300 ERs
GE Aviation’s GE 90-115B engine will power the 777-300 ER aircraft. “With 61 777 300-ERs currently in service, this record-breaking dollar value order is another milestone for Emirates and affirms our strategy to expand our long haul destinations
and continue to excel as a world leading carrier, connecting the world to Dubai and beyond,” said Sheikh Ahmed. “The Boeing 777-300 ER aircraft plays a pivotal role in Emirates development of a modern fleet to meet the demand for global air travel for the future.” The 777-300ER will be operated in a three-class configuration with eight First Class suites, 42 Business Class seats and 310 Economy Class seats and offers an additional cargo payload of 20.1 tons. “This is an extremely proud moment for us as it not only underscores Emirates’ ongoing confidence in the 777 but also makes this the single largest order in dollar value in Boeing’s history,” said Albaugh.
Continued Innovations
“As the largest operator of the 777 in the world, Emirates has played an important role in development of the airplane and its input over the years has been invaluable in the development of the 777 programme.” Emirates President Tim Clark said: “Today’s 777-300 ER order gives Emirates the ability to replace some of our older existing aircraft, allowing us to maintain our leadership in fuel efficiency as well as providing our customers with an updated superior product.” He said passengers could look forward to continued innovations in aircraft comfort, entertainment and service. Emirates currently has a fleet of 162 wide-bodied aircraft, flying to 115 destinations in 67 countries. The airline is on track to become one of the largest airlines in the world. In addition to the 50 777-300 ERs announced in November, Emirates has 73 Airbus A380s, 70 Airbus A350s, 40 777-300 ERs and six Boeing freighters on order, for a total of 239 wide-body aircraft worth more than $92 billion (AED337.6 billion). This report was first published in Arab News.com January 2012
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Business |
Public Offer
Hard Target: A precision Air plane. Below, Precision Air Managing Director Alfonse Kioko
Precision Air was seeking to raise close to $16.5 million from the IPO for modernization and expansion of its fleet
Precision Air IPO Undersubscribed
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anzania’s biggest airline, Precision Air, has sold less than half its initial public share offering, with brokers saying investors were keeping their cash for a share placement from Tanzania Breweries Limited (TBL). Precision Air was seeking to raise close to $16.5 million from the IPO for modernization and expansion of its fleet, but managed to collect just TSh11.84 billion. Precision’s IPO ran from October 7 to November 4 and the sale of East African Breweries Limited’s (EABL) 20% stake in TBL started on November 4 and closed on Nov ember 25. “The IPO was largely undersubscribed because investors were not comparing Precision Air with any other airline, they were comparing it with TBL, which appeared to be more attractive to some of the investors,” Laurean Malauri, CEO of Orbit Securities, sponsoring broker for the IPO, commented. “The fact that there were delays in getting approvals from the Kenyan Stock Market regulator has led to a
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They
were comparing it with TBL, which appeared to be more attractive to some of the investors
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negligible participation of foreign investors in the IPO. By the time the IPO came, it was too late for Kenyan investors to participate. The airline had set aside up to 49% of the 58.8 million shares on offer to foreign investors.
Plan
However, some foreign business analysts say that the airline’s management may have expected too much from the foreign investors compared to focusing on raising a bulk of the funds from the local investor pool. “The IPO was still a success
because the aim was to increase public ownership of the airline, and retail investors were the majority of the buyers,” said Malauri. Precision Air is working on another financing plan to meet the funds gap after the under-subscription. The airline has submitted a financial plan to relevant authorities explaining how the funds raised from the IPO would be invested and outlining the strategies of filling the financial gap to ensure that its goals are met fully. In a statement by Precision Air Managing Director Alfonse Kioko, it was clear that 6,667 investors had participated in the IPO but a turnaround would be realized once Precision Air was listed on the Dar es Salaam Stock Exchange on December 15. Before the IPO was announced, Kenya Airways owned 49% of Precision Air, with the remainder being owned by the chairman and founder of the airline, Michael Shirima. Shirima’s stake was made available for sale during the IPO. Currently, Shirima owns 35.52% of the airline, Kenya Airways 34.13% and the public 30.35%.
Kenyan’s Plan to fly Planes Using Mobile Phone Technology A 37-year-old engineer is flexing his innovation muscles by aspiring to be the first African to fly an unmanned aircraft using the latest mobile phone technology. Nyaga Ouko is no ordinary Kenyan. As a child, Ouko grew up with aviation books around him given to him by his father, who had his own ambitions to become an aviator, although he had to give up his ambition then in favour of staying at home to take care of the family farm. Upon finishing high school, Ouko moved to Nairobi in 1994, where he proceeded to study aviation engineering at a local college. The young engineer and pilot was one of the participants in the inaugural edition of The Next
Big Thing, with his cutting edge innovation on how to bring down the cost of navigating airlines and the charges that passengers incur from the same. “Navigation equipment and services are very expensive, a price that is loaded onto passengers in the form of charges and taxes,” he says. The system he has in mind uses mobile phone technology to measure aircraft ground speed and measure altitude, amongst other things. Ouko argues that his innovation would see mobile phone technology integrated into the aircraft and on the ground to help in navigation. If he is successful in his desire, Ouko could create a system that could reduce airport aircraft congestion by up to 30%.
Royal Jordanian Heading to Nairobi
Kenya will soon see another airline making regular visits to Nairobi. Starting December Royal Jordanian will commence flights to Nairobi, initially 4 times a week every Tuesday, Wednesday, Friday and Sunday with the respective return flights taking off from JKIA in the early hours of Monday, Wednesday, Thursday and Saturday. Royal Jordanian will be us-
ing an Airbus A319 on the route in a two class configuration. The new connection will open up further opportunities for trade and doing business between Jordan and East Africa as a whole and allow for visits to the parts of the Holy Land located in what today is the Kingdom of Jordan. This move is preceded by the launch of flights to Lagos, initially served twice a week using an Airbus A330.
Biz bytes
>> Students to Represent Kenya at Tourism Conference Two girls from a school in Murang’a County have represented Kenya at an international tourism conference. The students, Loreen Gachambi and Peris Wangui, both of Kamahuha Girls’ High School in Murang’a South District, were all smiles after a panel picked them as the winners of a Global Travel and Tourism Partnership award. Issues surrounding the growth of tourism were expected to take centre-stage during the conference. “Kenya is a tourist destination. A lot has to be done to double the number of tourists flying to our game parks and other attraction centres,” said Peris Wangui. The students flew out to Monaco on the morning of November 19. “The school has been producing responsible students, and the President of the Students’ Council came from here,” said the head teacher, Ms. Florence Ngarari.
>> Aviation Players Endorse Airport Authority’s Expansion Plans
Aviation industry stakeholders have welcomed Kenya Airports Authority (KAA) plans to expand and modernize the Jomo Kenyatta International Airport (JKIA). Speaking during a fourth breakfast meeting, industry players lauded the KAA for its efforts to upgrade infrastructure and enhance customer service. “With all indicators pointing to Africa as the next economic growth frontier, it is very important that we have a very robust transportation infrastructure and part of these changes come slowly such as the expansion of our local airports like JKIA,” said Kenya Airways CEO.
January 2012
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Business |
Incidents
Baldwin apologizes to passengers, not airline
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lec Baldwin issued an apology early December to fellow passengers on an American Airlines flight that was delayed by his refusal to stop playing a cellphone game — but stopped short of apologizing to the airline or the flight attendant he later mocked on Twitter. The 30 Rock actor’s note, posted to the Huffington Post (http://huff.to/ sENHR2 ), instead lamented the state of modern air travel. Baldwin noted the financial struggles of airlines, saying the result is that air travel has devolved into an inelegant experience, akin to riding a Greyhound bus. Baldwin said the level of service on US carriers has deteriorated. “Filthy planes, barely edible meals, cuts in jet service to less-traveled locations,” Baldwin said. Baldwin writes that increased security on commercial airplanes post-9/11 has resulted in a “paramilitary” aura around air travel. “September 11th was a horrific day in the airline industry, yet in the wake of that event, I believe carriers and airports have used that as an excuse to make the air travel experience as inelegant as possible,” Baldwin writes.
Extremely Vocal
Baldwin’s letter is the latest volley in a dustup with American Airlines, with the airline taking to social media Wednesday to maintain it was following federal regulations when it booted an “extremely vocal customer” from a flight for refusing to shut off his cellphone. The airline, which earlier cited passenger privacy in declining to discuss the matter, said on its Facebook page it decided “to provide the actual facts of the matter” after Baldwin stated publicly he had gotten kicked off the flight. The company never cited the 30 Rock TV star by name. Baldwin took to Twitter after
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Baldwin’s letter is the latest volley in a dustup with American Airlines, with the airline taking to social media to maintain it was following federal regulations
A flight attendant on American reamed me out for playing a game on cellphone
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Baldwin said
Tuesday’s incident at Los Angeles International Airport, saying he was asked to leave a New York-bound plane after a “flight attendant on American reamed me out” for playing a game on his cellphone. Baldwin said he was playing Words With Friends while the plane sat at a gate. American said on Facebook on December 7 that Federal Aviation Administration regulations require that cellphones and other electronic devices be turned off as soon as the airliner’s door has been closed. The company said Baldwin refused to comply. “The passenger ultimately stood up (with the seat belt light still on for departure) and took his phone into the plane’s lavatory,” American Airlines said. “He slammed the lavatory door so hard, the cockpit crew heard it and became alarmed, even with the cockpit door closed
and locked. They immediately contacted the cabin crew to check on the situation.” The airline added that Baldwin was “extremely rude” to the flight crew, calling people “inappropriate names” and using offensive language. Baldwin’s spokesman, Matthew Hiltzik, said it was the flight attendant who acted inappropriately. He said other people on the plane were violating the regulation and that Baldwin was singled out.
Won’t Fly American Again
“The plane was already delayed half-an-hour at the gate when Alec was playing Words with Friends,” Hiltzik told The Associated Press. “Other passengers who tweeted flagrantly violated these rules without any repercussions — proving that they were obviously selectively enforced.” Airport police have said
they did not respond to the incident. Baldwin deactivated his Twitter account and all of his previous tweets were removed. Hiltzik said that was because the actor was setting aside his Twitter activity to concentrate on 30 Rock. At least one other celebrity came to Baldwin’s defense on Twitter. Boxing great Oscar De La Hoya, who was on the same flight, tweeted that he thought the flight attendant overreacted. “AlecBaldwin was doing nothing wrong but playing Words on his phone,” De La Hoya said. Baldwin boarded another American Airlines flight to New York after the incident, but said he wouldn’t fly with American again. In the tweets that have since been removed,
Baldwin mocked American Airlines as a company “where Catholic school gym teachers from the 1950s find jobs as flight attendants”. He also called Words With Friends an “addicting” game. Players compete online to score the most points by building words with tiles on a Scrabble-like game board. Baldwin plays the role of the vain executive Jack Donaghy on the NBC sitcom 30 Rock and played an amorous ex-husband to Meryl Streep in the 2009 romantic comedy It’s Complicated. He also is featured in a series of comical TV ads for Capital One credit cards. In one spot Baldwin strolls through an airport and luxuriates on an airplane while surrounded by a coterie of assistants.
Firstnation Airways Debuts in Nigeria
A new carrier, FirstNation Airways, has started operations in Nigeria with an inaugural flight carrying over 200 passengers between Lagos and Abuja on November 3. The flight was conducted with the airline’s A320 aircraft. “It was a very smooth flight; really, it’s a breath of fresh air,” remarked one of the passengers after flying from Abuja to Lagos. FirstNation notes that the flights were not advertised as the airline needed to await all regulatory approvals. FirstNation notes further that its airport staffers, proudly and neatly dressed in the airline’s green and white colours (with a red neck-scarf for the ladies), were on hand at the ticketing
and check-in counters to attend to customers. The Chairman of the airline, Kayode Odukoya, had announced plans to launch the new carrier which generated much excitement among air travellers in Nigeria as they anticipated a new choice in fulfilling their air travel needs. Currently, the Nigerian Civil Avation Authority (NCAA) has placed stringent conditionalities for entry or renewal of licence of airlines based on a recertification programme which Nigerian airlines are striving to successfully undergo. The recertification process is a sort of guarantee to improve safety performance among Nigerian carriers and to maintain the zero-accident record of commercial airlines in Nigeria.
Biz bytes >>East Africa Hoping For Fly Dubai Interest
Dubai’s low cost airline ‘Fly Dubai’ is eyeing over 40 destinations by the end of 2011. This has raised hopes in Eastern African aviation circles, that after the recent opening of the route between Dubai to Addis Ababa other destinations like Nairobi, Dar es Salaam and Entebbe could be on the airline’s drawing board. The airline is presently flying to 36 destinations from its hub in Dubai, all within a 5 hour range, and the key Eastern African airports fall into that bracket. The success of Sharjah’s low cost airline ‘Air Arabia’ on the route to Nairobi, which has led to the airline increasing its frequencies to daily flights, hints to Fly Dubai that there is room for a lot more traffic, especially in the low cost segment of the market, which has hitherto been rather underrepresented in the traffic uplift by conventional full service airlines. Fly Dubai, has been about two years in operation, and is presently taking delivery of NG B737800’s at a record pace, with a total of 50 such state-of-the-art single-aisle planes on order and due to join the fleet over the next four years.
>> Qatar Airways Reaching Further in EA Qatar Airways sees potential for expansion of its services after connecting the major commercial centers in the region. “We are in the process of expansion in Africa, especially East Africa, where we see more potential for growth as these countries are underserved, underestimated and, at the same time, their full potential is unutilized, Chief Executive Officer Qatar Airlines Akbar al-Baker said. East Africa is a much-sought-after destination for many carriers and many entrants into this fertile market usually face stiff competition from established brand names..
January 2012
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