Boeing, Airbus Battle For African Market
Africa is described as the last frontier for aircraft giants, Boeing and Airbus, as the duo penetrate the continent’s aviation market, which provides a win-win situation for stakeholders. WOLE SHADARE writes
Seeking strong presence in Africa
Aerospace giants, Boeing and Airbus, are looking to expand their presence in Africa, through a range of activities including biofuels, training and manufacturing among others. Just last week, Airbus indicated plans to open an operational office in Nigeria. The move signposts confidence in Federal Government’s agenda for the aviation industry.
Leading the delegation on a visit to the Minister of State for Aviation, Hadi Sirika, in his office, the Ambassador of France in Nigeria, Denys Gauer, said they were in the ministry to acquaint themselves and identify with new government’s vision and plans for the aviation sector, as presented by the Minister to various industry stakeholders both in the country and at the international level.
He also informed the Minister of the intention of one of the largest aircraft manufacturers and leasers in the world, the Airbus Group, to open an operational office in Nigeria as a mark of confidence in government’s agenda for the aviation industry in Nigeria.
Govt’s support
Also briefing the aviation minister, the Vice President of the Airbus Group for Africa, Vincent Larnicol, said the company had expanded its strong European roots to move forward on an international scale with fully-owned subsidiaries in the United States, China, Japan, India and the Middle East. Besides, he said the company had spare parts centres in Hamburg, Frankfurt, Washington, Beijing, Dubai and Singapore as well as engineering and training centres in Toulouse, Miami, Wichita, Hamburg, Bangalore and Beijing; and more than 150 field service offices around the world.
According to him, Airbus, in its desire to get closer to its customers, is also actively developing engineering, manufacturing and service capabilities in Europe, China, India, Russia, the Middle East, Singapore and the United States. This, he said, also informed the decision to establish its presence in Nigeria with the opening of an operational office.
The Airbus executive also informed Sirika of the group’s interest in plans of the government to concession major airports across the country, as well as the establishment of a national carrier.
He also commended government’s plan to establish an aircraft leasing company in view of the inherent difficulties in acquiring new aircraft. The Airbus Group also promised to collaborate, through its cooperation programme, with the Nigerian government in the establishment of an Aviation University to which the International Civil Aviation Organisation (ICAO) is largely committed.
Repositioning aviation
In response, Sirika informed the Ambassador and the Airbus delegation that the vision of the government for the sector included, amongst others, the establishment of a private sector-driven national carrier, concession of the nation’s major airports to make them more viable and up to global standards. Also included are repositioning of domestic airlines to make them competitive and profitable, establishment of Maintenance, Repair and Overhaul (MRO) facilities and development of human capital for the anticipated expansion of the sector.
According to the minister, the plan of Buhari’s administration is to gradually reposition the Nigerian aviation industry in such a way that it would turn the nation into a regional hub for air transportation, given the ICAO forecast of a quadruple growth for the nation’s air travel in the next ten years. He expressed Nigeria’s preparedness to collaborate with all genuine partners, insisting, however, that the government’s decisions and actions would always be guided by the protection of national interests.
Benefit to airlines
Although airline operators in Nigeria have more of Boeing aircraft than Airbus, the new in road in Nigeria and Africa could be seen as enhancing or strengthening of the competition between the two major aircraft makers. Only two airlines, Arik and First Nation, operate that aircraft type, just as the presence of the operational office of the Airbus in Nigeria could be a win-win situation both for the airplane maker and the carriers, as the planned maintenance centre could help the airlines to service their aircraft in the country or get their spare parts, thereby saving money.
Rivalry
Airbus’ fiercest competitor, Boeing, had also expanded its presence in Africa through a range of activities including biofuels, training and manufacturing. Boeing is involved in many different sectors of the aerospace industry in South Africa. For instance, it has partnered with 43 Air School on pilot training and is working on additive manufacturing and titanium powder in conjunction with local researchers and has a biofuels programme with South African Airways.
In June 2013, Boeing and the Council for Scientific and Industrial Research (CSIR) signed a memorandum of understanding (MoU) on research into using titanium powder in industrial manufacturing. South Africa is the second largest titanium mineral producer. In October last year, Boeing and South African Airways signed an agreement on the establishment of a sustainable aviation biofuel supply chain in Southern Africa. This is Boeing’s first biofuel supply chain project in Africa.
Struggle for continent’s market
Airbus and Boeing, the two global giants of aviation, neck and neck in a global trade war, are eyeing the African market, where some 700 aircraft should be sold by 2030. Recognising the potential of this promising market, they remain in close contact with African carriers and those who service the continent. Indeed, sustained economic growth on the continent has helped to revive air travel. With an average fleet age of almost
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