Riyadh Air and IBM Collaborate to Launch AI-Native Airline

British Airways Expands Boeing 777 Operations on London–Madrid Route British Airways will reintroduce the Boeing 777-200ER on its London Heathrow to Madrid service starting March 29, coinciding with the launch of the IATA summer schedule. This marks the first time since 2022 that the airline will deploy widebody aircraft on this short-haul European route, making BA the sole oneworld member to offer scheduled widebody flights on such a corridor this summer. The daily 777 flights will operate until October 25, covering the 672-nautical-mile (1,245 km) journey in approximately two and a half hours each way. According to British Airways’ schedule filed with Cirium, 163 round-trip flights will utilize a 272-seat configuration, while an additional 47 round-trips—primarily on Mondays and Saturdays—will feature a 235-seat layout equipped with the airline’s new Club Suites. This lower-capacity variant includes eight First Suites, 49 Club Suites, 40 World Traveller Plus seats, and 138 World Traveller seats. However, First Suites will not be available for booking on this short sector, and it remains uncertain whether passengers with high-status Club Suite bookings might be eligible for upgrades. The scheduled flight times in April are as follows: departures from Heathrow at 12:20 pm, arriving in Madrid at 3:50 pm, with return flights leaving Madrid at 5:30 pm and landing at Heathrow at 6:55 pm. Market Context and Industry Implications While British Airways increases its widebody presence on the London–Madrid route, fellow International Airlines Group (IAG) carrier Iberia will continue operating twin-aisle aircraft—including the A330-200, A330-300, and A350-900—between the two capitals, albeit with reduced frequency compared to previous summers. Both airlines primarily deploy these larger aircraft to meet freight demand on routes connecting Europe and South America. Looking ahead to August 2026, Heathrow is projected to handle an average of nine daily European departures on twin-aisle aircraft. Turkish Airlines will operate four to five daily flights from Istanbul using A330-300s or 777-300ERs, Finnair will maintain twice-daily A350-900 services from Helsinki, British Airways will continue its daily 777-200ER flights to Madrid, Iberia will offer six weekly Madrid flights, and Icelandair will operate five weekly services from Keflavik with 767-300ERs, although the latter is expected to retire its 767 fleet by late 2026. This strategic redeployment of widebody aircraft occurs amid a shifting market environment. IAG recently experienced a roughly 10% decline in its share price following third-quarter earnings, as investors reacted to softer yields and lower load factors on transatlantic routes. Meanwhile, competitors such as Wizz Air are adjusting their Airbus A321XLR commitments and delivery schedules in response to evolving market conditions. On the manufacturing front, Boeing’s stock is trading near $189 per share, supported by a strong commercial backlog and optimism regarding production, cash flow, and safety targets. Emirates’ recent $41.4 billion order for Boeing 777-9s and Airbus A350-900s at the Dubai Airshow 2025 further underscores sustained confidence in widebody aircraft. Boeing’s share price has surged following its 2026 cash-flow commitments, even as rival Airbus has trimmed delivery targets amid technical challenges. British Airways’ decision to increase Boeing 777 service on a short European route reflects a nuanced operational strategy within the broader dynamics shaping the aviation industry, as airlines and manufacturers adapt to shifting demand patterns, competitive pressures, and evolving fleet plans.

Côte d'Ivoire Explores the Impact of AI on Civil Aviation Jobs Commemorating International Civil Aviation Day On December 7, Côte d’Ivoire marked International Civil Aviation Day with a focused dialogue on “The Future of Jobs in the Civil Aviation Sector,” emphasizing the transformative role of Artificial Intelligence (AI) in reshaping employment within the industry. The event convened unions, industry experts, and workers to deliberate on the challenges and opportunities presented by rapid technological advancements in civil aviation. The Changing Landscape of Employment in Civil Aviation Industry expert Bayla Sow underscored the rapid evolution of the sector, stressing the imperative for proactive adaptation and continuous professional development to maintain workforce versatility. Sow cautioned that AI integration could potentially render certain roles, such as ground handling and check-in agents, obsolete within the next two decades. This looming displacement highlights the critical need for workers to upskill and diversify their competencies to remain relevant. Despite these concerns, Sow pointed to optimistic growth projections for international air transport, which is expected to reach 9.8 billion passengers annually between 2025 and 2030, with annual growth rates estimated between 3.6 and 4.8 percent. However, the adoption of AI also introduces broader challenges, including risks of data exclusion and increased global consumption of energy and water due to AI-intensive systems. These factors may deepen inequalities among nations, as not all countries possess equal capacity to leverage AI’s benefits or mitigate its associated risks. Union Perspectives and the Call for Decent Work Guy Georges Sere, President of the Union of Air Transport Unions of Côte d’Ivoire, emphasized the significance of the day for industry workers and reaffirmed the unions’ commitment to collaborating with companies to enhance working conditions and secure decent employment. Bayla Sow further elaborated on the concept of decent work, defining it as encompassing fair wages, social protection, and the right to strike. Moussa Sangare, responsible for traffic management at the International Transport Workers’ Federation (ITF), reiterated the federation’s focus on labor rights, social protection, and gender equality. He highlighted that technological progress demands continuous adaptation to safeguard workers’ rights and uphold decent employment standards. In response to competitive pressures, there is an increasing call for robust ethical frameworks and globally recognized type certification for AI systems, moving beyond corporate self-regulation to ensure their safe and equitable deployment in civil aviation. Addressing Gender Disparities and Future Challenges Assita Ouedraogo, ITF Africa Regional Women’s Coordinator, addressed the persistent gender gap in the sector, particularly in high-responsibility positions such as air traffic controllers. She advocated for enhanced female representation and capacity-building initiatives, alongside stronger measures to combat violence and harassment against women in aviation. Ouedraogo also echoed concerns regarding AI-driven job losses, citing research into pilotless aircraft as a significant threat to employment levels by 2050. She urged workers to strengthen their skills to remain resilient amid technological disruption. Emphasizing Adaptation and Collaboration Supported by the ITF and its sub-regional office, the event underscored the critical importance of adaptation and ongoing training in the face of technological change. The ITF National Coordination of Affiliates in Côte d’Ivoire, comprising 20 unions, was recognized as a model of effective collaboration in promoting workers’ rights within the evolving civil aviation landscape.

HRA Finalizes First ICBC Deal with Acquisition of 737 MAX 8 Aircraft High Ridge Aviation (HRA) has completed its inaugural transaction with ICBC Aviation Leasing (ICBC) through the acquisition of two Boeing 737 MAX 8 aircraft, identified by manufacturer serial numbers 43917 and 43918. These aircraft will be leased to Aerolíneas Argentinas, the national airline of Argentina, supporting the carrier’s ongoing efforts to modernize its fleet. Strategic Partnership and Industry Implications Greg Conlon, CEO of High Ridge Aviation, expressed his appreciation for the collaboration with ICBC, underscoring the company’s commitment to delivering sustained value across the aviation sector. He emphasized HRA’s extensive industry experience and robust partnerships as essential to providing sustainable solutions for financiers, operators, and stakeholders. The transaction reflects HRA’s broader growth strategy, which prioritizes the development of a diversified and modern fleet in cooperation with leading industry players. Despite the strategic benefits, integrating the newly acquired 737 MAX 8 aircraft poses several challenges for HRA. These include ensuring smooth operational integration, maintaining strict compliance with regulatory standards, and managing the financial complexities associated with the deal. The transaction is likely to attract scrutiny from competitors and investors, who will assess its strategic merit amid a rapidly evolving competitive landscape. Market Context and Industry Developments Aerolíneas Argentinas recently announced an ambitious fleet renewal plan involving 18 new aircraft, including 14 Boeing 737 MAX jets, signaling a significant shift in the regional aviation market. This move may prompt rival lessors and airlines to accelerate their own fleet modernization initiatives. Concurrently, Boeing continues to influence the market through major developments such as its acquisition of Spirit AeroSystems and securing new orders from carriers including Air Senegal, Ethiopian Airlines, and Emirates. These industry dynamics present both opportunities and challenges for lessors like HRA as they seek to expand their portfolios and strengthen their roles as trusted partners for airlines and capital providers. HRA’s successful execution of this complex transaction with ICBC reinforces its reputation as a reliable leasing platform. As the aviation sector undergoes continued transformation, the company’s focus on strategic growth and operational excellence will be pivotal in navigating an increasingly competitive environment.

Mega Orders May Strain Aviation Supply Chains Record-Breaking Deals at the Dubai Airshow The Dubai Airshow has solidified its position as a pivotal event in the global aviation industry, showcasing cutting-edge innovations and facilitating landmark commercial agreements. This year, Airbus and Boeing emerged as the primary beneficiaries of the event’s robust order book. Airbus secured significant contracts from carriers including Flydubai, Etihad Airways—covering both passenger and freighter aircraft—Ethiopian Airlines, Emirates, Buraq Air, and Air Europa. Boeing, meanwhile, announced a monumental $38 billion order from Emirates for multiple 777-9 aircraft, complemented by substantial commitments from Flydubai, Ethiopian Airlines, Air Senegal, and Gulf Air. These mega orders underscore the Gulf region’s growing prominence as a key aviation hub and signal a considerable expansion in the capacity of regional airline fleets. Supply Chain Pressures and Industry Response The surge in aircraft orders is poised to place considerable strain on global aviation supply chains. The unprecedented volume of demand threatens to challenge production capabilities, potentially leading to delivery delays and heightened scrutiny of supply chain resilience. Industry analysts warn that such large-scale commitments may influence investor confidence as manufacturers and suppliers strive to meet escalating requirements. In response, competitors are expected to increase production rates or diversify their supplier networks to mitigate the risk of disruption. The expansion of airline fleets will also stimulate growth in the maintenance, repair, and overhaul (MRO) sector, which is critical to minimizing aircraft downtime. The United Arab Emirates has emerged as a regional MRO hub, leveraging its strategic airport connectivity, frequent airline operations, and access to free trade zones. This has fostered dense MRO ecosystems, with leading companies such as Etihad Engineering, Emirates Engineering, Sanad, and Dubai Aerospace Enterprise playing central roles. Saudi Arabia is similarly investing in this sector, with plans underway for a new “MRO village” at King Abdulaziz International Airport in Jeddah, supported by the Public Investment Fund. Engine manufacturers are expanding their regional footprints to support this growth. GE Aerospace recently announced a new 120,000 square foot “On Wing Support” facility at Dubai South’s Mohammed Bin Rashid Aerospace Hub, replacing its existing 29,000 square foot site and servicing Leap engines widely used in the latest aircraft orders. GE is also enhancing its facility in Doha. Pratt & Whitney, part of RTX Corporation, is developing a new facility in Abu Dhabi in partnership with Sanad Group, scheduled for completion in 2028. Rolls-Royce continues its collaboration with Sanad, with Emirates Airlines set to gain rights to perform certain engine repairs starting in 2027. Beyond engine maintenance, the MRO market encompasses a broad range of services including airframe servicing, auxiliary power unit maintenance, landing gear inspections, and interior refurbishments—all essential to sustaining the operational readiness of expanding fleets. Strategic Moves to Strengthen Supply Chains Industry stakeholders are actively addressing supply chain challenges through strategic initiatives. Boeing Defense’s recent union contract ratification in St. Louis and Northrop Grumman’s appointment of a new chief financial officer reflect efforts to enhance supply chain management and operational efficiency. Additionally, the $2.2 billion sale of Novaria to a private equity firm signals a strategic realignment aimed at bolstering supply chain stability and financial agility. As the aviation sector embarks on this new phase of growth, the capacity of manufacturers and suppliers to adapt and innovate will be crucial in fulfilling demand and sustaining the momentum generated by these record-breaking orders.

MRO Facility for C-130J Super Hercules to be Established in Bengaluru A new Maintenance, Repair, and Overhaul (MRO) facility dedicated to the C-130J Super Hercules aircraft is set to be developed in Bengaluru, representing a significant advancement for India’s aerospace and defence sectors. The project, a collaboration between Tata Advanced Systems and Lockheed Martin, was officially announced on December 8, with construction expected to conclude by 2026. The first C-130 aircraft is anticipated to arrive for MRO operations in early 2027. Strategic Location and Capabilities Situated at Bhatramarenahalli near Kempegowda International Airport, the facility will become part of Lockheed Martin’s global network of certified service centers. It is designed to support a range of aircraft including the C-130J Super Hercules, KC-130J, and legacy C-130 B-H models. The centre will offer comprehensive depot-level and heavy maintenance services, component repair and overhaul, structural inspections and restoration, avionics upgrades, and expanded training programs for Indian engineers and maintenance personnel. Furthermore, the initiative is expected to generate new opportunities for Indian suppliers involved in the C-130 supply chain, thereby strengthening the domestic aerospace ecosystem. Frank St. John, Chief Operating Officer of Lockheed Martin, emphasized the importance of the partnership, noting that the groundbreaking reflects the deepening collaboration between Lockheed Martin, Tata Advanced Systems, and India’s aerospace industry. He highlighted that the facility will enhance sustainment capabilities within India, improve operational readiness for the Indian Air Force, and support regional and global C-130 operators. Rod McLean, vice-president and general manager of Lockheed Martin Air Mobility and Maritime Missions, underscored the strategic value of the C-130J Super Hercules for India’s military and humanitarian efforts. He stated that the new MRO facility will improve response times and security in the Pacific region, while aligning with India’s broader ambitions to develop world-class sustainment capabilities domestically and globally. Challenges and Competitive Landscape The establishment of the Bengaluru MRO facility faces several challenges, particularly in navigating India’s complex regulatory environment. Compliance with import and export controls, aviation safety standards, environmental regulations, and waste management protocols will be essential for the facility’s successful operation. Additionally, the Indian MRO market is becoming increasingly competitive. Other players, such as Germany’s Inavia Aviation, which recently inaugurated a dismantling and full-service MRO centre in Bhopal, Madhya Pradesh, are also seeking to expand their market share. This competitive pressure may drive rival facilities to enhance their capabilities and sustainability practices to meet the high standards set by the Bengaluru centre. Despite these hurdles, the new MRO facility is expected to significantly bolster India’s position in the global aerospace supply chain. It will improve the operational readiness of the Indian Air Force and provide critical support to C-130 operators across the region. The project reflects India’s growing ambition to become a major hub for aerospace maintenance and sustainment, serving both domestic and international fleets.

Future Aero Festival Highlights Embraer’s Innovations Amid Rising Competition The Future Aero Festival, held in Amsterdam on December 1-2, 2025, brought together leading innovators and investors from across the Atlantic to explore the rapidly evolving aviation technology landscape. Organized by Sustainable Aero Lab, the event featured a notable discussion with Daniel Moczydlower, President and CEO of Embraer-X, the innovation division of the Brazilian aerospace giant Embraer. Embraer-X: Autonomy and Innovation Embraer-X operates with a distinct level of autonomy, reporting directly to Embraer’s parent company rather than being integrated into the group’s four primary divisions: Commercial Aircraft, Executive Aviation, Defense, and Services. This unique structure enables Embraer-X to pursue disruptive and agile innovation while still benefiting from the broader organization’s resources. Moczydlower highlighted that maintaining this balance—close enough to leverage Embraer’s capabilities yet independent enough to innovate freely—is central to Embraer-X’s mission. In 2024, Embraer’s four business units delivered strong performances. The commercial division secured significant orders for the E2 family, executive jets outpaced market growth, and the defense segment expanded its international footprint, driven by the success of the C-390 multi-role transport aircraft. The services division also experienced increased demand, reflecting the group’s overall positive momentum. Embraer-X’s physical separation from the main company further reinforces its innovative approach. Headquartered in San Francisco, with additional centers in Boston and the Netherlands, Embraer-X strategically positions itself within global innovation hubs. This geographic presence facilitates close collaboration with leading universities, research institutions, and the European technology ecosystem. EVE Air Mobility and Market Challenges The most prominent project emerging from Embraer-X is EVE Air Mobility, a developer of electric vertical takeoff and landing (eVTOL) aircraft. EVE was spun off and listed on the New York Stock Exchange in 2022, with Embraer retaining a significant stake. Despite industry uncertainties and development delays, EVE remains committed to launching its eVTOL flight testing program in 2026. This steadfast commitment distinguishes EVE from several major original equipment manufacturers, including Airbus and Hyundai, which paused their advanced air mobility initiatives in 2025. However, Embraer faces intensifying competition in the advanced air mobility sector. At the Future Aero Festival, rival manufacturers such as Archer and Aerofugia showcased their own advanced eVTOL aircraft, escalating the race for market leadership. The market’s response will depend heavily on Embraer’s ability to clearly articulate the unique advantages of its technologies relative to emerging competitors. In turn, these rivals are expected to increase their marketing and innovation efforts, signaling a more aggressive competitive environment. Moczydlower expressed pride in Embraer-X’s critical role in launching EVE Air Mobility, emphasizing the division’s dedication to pioneering new frontiers in aviation. As the industry confronts both technological and commercial challenges, Embraer-X’s combination of independence and integration within the Embraer group positions it as a key player in shaping the future of flight.

Range Comparison Between Airbus A321XLR and Boeing 737 MAX In the increasingly competitive single-aisle aircraft market, range has emerged as a pivotal factor influencing airline fleet strategies. Carriers are seeking narrowbody jets capable of flying longer distances to open new city pairs and replace widebodies on long-thin routes. This dynamic has brought the Airbus A321XLR and Boeing 737 MAX families into sharp focus. With the A321XLR now certified and entering service, and the 737 MAX-10 still pending FAA approval, the question of how much greater range Airbus offers compared to Boeing is more pertinent than ever. Range: The Defining Difference Airbus markets the A321XLR with a maximum range of up to 4,700 nautical miles and an endurance of approximately 11 hours. This extended reach is achieved through increased fuel capacity and aerodynamic improvements, representing a significant advancement for the A320 family. The A321XLR now enables missions traditionally served by smaller widebodies such as the Boeing 767 or Airbus A310. By contrast, Boeing’s largest MAX variant, the 737 MAX-10, offers a maximum range of 3,100 nautical miles. Even the longest-range MAX model, the MAX-7, reaches only 3,800 nautical miles. This results in the A321XLR having a range advantage of roughly 1,600 nautical miles over the MAX-10, equating to more than 50% greater reach. Operationally, this allows the A321XLR to connect city pairs like New York–Rome, London–Vancouver, Delhi–London, and Sydney–Kuala Lumpur—routes that exceed the capabilities of the 737 MAX-10. Strategic and Operational Implications The additional range of the A321XLR enables airlines to pursue hub-bypass long-haul flights, thereby opening new markets and enhancing efficiency on thinner routes. The aircraft’s 101-tonne maximum takeoff weight, permanent Rear Center Tank, and aerodynamic refinements contribute to fuel burn reductions of up to 30% compared to previous-generation competitors. This efficiency is particularly significant as airlines increasingly prioritize cost management and sustainability. Industry Context: Challenges and Shifting Dynamics Both Airbus and Boeing face notable challenges amid these developments. Airbus recently confronted a quality issue involving metal panels and a software recall affecting approximately 6,000 A320 family aircraft, which unsettled investors and led to a decline in its share price. Additionally, Wizz Air has reduced its commitment to the A321XLR and delayed deliveries, reflecting some market caution. Boeing continues to manage the repercussions of safety concerns and production delays, most recently underscored by a door-plug blow-out incident on the 737 MAX. Despite these setbacks, Boeing has received positive developments: the FAA has approved an increase in MAX production to 42 aircraft per month, and TUI has acknowledged improvements at Boeing. Furthermore, Turkish Airlines’ selection of GE Aerospace engines for its new Boeing 787s signals sustained confidence in Boeing’s widebody offerings. Conclusion While both manufacturers navigate operational and reputational challenges, the A321XLR’s substantial range advantage positions it as a transformative option for airlines aiming to expand long-haul narrowbody operations. The 737 MAX-10, although offering high capacity, remains focused on shorter routes. As the A321XLR enters service and the MAX-10 awaits certification, the evolving landscape of single-aisle long-haul travel is poised to reshape global airline networks.

Malaysia Aviation Group Advances Fleet Modernisation Amid Strategic Transition Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, is progressing with its comprehensive fleet renewal strategy as it prepares to select the next generation of widebody aircraft to replace its current long-haul fleet of leased Airbus A350s. This forthcoming decision represents the final major phase in MAG’s long-term passenger fleet modernisation plan, underscoring the group’s commitment to enhancing its operational capabilities and passenger experience. Leadership Transition and Strategic Focus The fleet renewal initiative has been a central priority under the leadership of MAG Managing Director Izham Ismail, who is scheduled to retire at the end of January 2026. The responsibility for overseeing the completion of this strategic plan will transition to his successor, former Chief Operating Officer Nasaruddin Bakar. This leadership change comes at a critical juncture as the group navigates complex market dynamics and operational challenges. Delivery Delays and Capacity Expansion MAG has encountered significant delays in the delivery of its existing orders for Boeing 737 MAX and Airbus A330neo aircraft, which have affected its capacity planning and operational flexibility. Nevertheless, recent improvements in delivery schedules are enabling the airline to expand its capacity and introduce upgraded cabin products, thereby enhancing the overall passenger experience. These developments are vital as MAG seeks to maintain competitiveness in a region marked by rapid aviation growth. Financial and Operational Challenges Despite these positive strides, MAG faces considerable financial and logistical challenges associated with acquiring new aircraft and integrating them into its existing operations. The high capital expenditure required for fleet renewal, coupled with the complexities of operational transition, demands careful management to ensure financial stability. Industry observers are closely monitoring MAG’s ability to execute this transition smoothly, particularly as regional competitors intensify their own fleet expansions. Regional Competition and Market Dynamics The competitive landscape in Southeast Asia and beyond is becoming increasingly dynamic. Ethiopian Airlines is expanding its Boeing MAX fleet while exploring new widebody options, and Philippine Airlines continues to augment its Airbus A320 fleet. Additionally, Boeing’s robust delivery performance in October 2025 has reinforced its position as a dominant player in the widebody market, a factor likely to influence MAG’s forthcoming fleet decisions. As Malaysia Aviation Group advances its fleet renewal efforts, its capacity to balance operational efficiency, financial prudence, and competitive positioning will be pivotal. The outcome of the widebody aircraft selection campaign and the successful integration of new aircraft will significantly influence the airline’s future trajectory within a rapidly evolving global aviation environment.

GE Aerospace Increases Funding for Training Programs in Malaysia Expanding Aviation Education and Workforce Development GE Aerospace has committed $125,000 (MYR 513,212.5) to Universiti Kuala Lumpur Malaysian Institute of Aviation Technology (UniKL MIAT) in Selangor, Malaysia, to enhance aviation education and workforce training across the country. This funding will support new initiatives developed by UniKL MIAT’s FLYTE (Future Leaders in Youth Technical Empowerment) team, in partnership with the Youth Aviation Club Malaysia (KRUM) and the Centre of Women Advancement and Leadership (CWAL). The programs aim to inspire secondary school students to pursue careers in aviation, address industry readiness gaps through technical skills training, and foster instructor excellence alongside leadership development. Kong Hon Leong, Managing Director and Executive Plant Leader of GE Aerospace Engine Services Malaysia, emphasized Malaysia’s longstanding role as a regional leader in aviation education. He highlighted the importance of continuous upskilling for graduates and professionals to remain competitive in the rapidly evolving aviation sector. “We are proud to work with UniKL MIAT and its partners to inspire, train, and develop the next generation of aviation technicians, engineers, and leaders,” he stated. UniKL MIAT’s Role and Industry Impact UniKL MIAT, recognized as Malaysia’s premier aviation and aerospace training institution, has provided hands-on training in world-class facilities for over 25 years. The institute plays a critical role in meeting the global demand for skilled talent in the maintenance, repair, and overhaul (MRO) market. Prof. Ir. Dr. Azmi Hassan, UniKL Deputy President (International, Industrial and Institutional Partnership), underscored the partnership’s potential to strengthen educational and professional pathways, from early education through to leadership development, thereby enhancing Malaysia’s position in the global aerospace industry. While the increased funding is expected to strengthen Malaysia’s aviation workforce, challenges remain in ensuring the effectiveness of training programs and the successful integration of newly trained individuals into the workforce. Market response to the announcement has been positive, with GE Aerospace’s stock experiencing notable gains, reflecting investor confidence in the company’s strategic focus on talent development. Strategic Context and Future Commitments This funding initiative arrives amid intensified competition within the aerospace and defense sectors. Industry analysts suggest that GE Aerospace’s investment may encourage competitors to increase their own commitments to workforce training in order to maintain a competitive advantage. The latest contribution builds on GE Aerospace and the GE Aerospace Foundation’s broader workforce development efforts, including a recently announced multi-year, $30 million global skills training program scheduled to launch in 2026. This flagship initiative will allocate $30 million over five years to support local programs by acquiring new equipment, hiring additional instructors, expanding curricula, and reducing financial barriers to essential training opportunities.

More Than 75% of Planes Operating in Nigeria Are Wet-Leased For several years, Nigeria’s aviation sector has been characterized by a heavy reliance on wet-leased aircraft—planes that are provided, crewed, maintained, and insured by foreign lessors but operate under local airline branding. Recent data reveals that over 75% of the aircraft flying within Nigeria are wet-leased, highlighting the industry’s dependence on this expensive and complex arrangement. Challenges of Wet Leasing in Nigeria’s Aviation Sector This dependence on wet leasing is driven largely by necessity rather than preference. Fewer than a quarter of the aircraft in Nigeria are owned outright by local carriers, and many of these are currently grounded due to maintenance issues or financial constraints. The shortage of operational, locally owned aircraft has resulted in frequent flight delays and cancellations, eroding passenger confidence and impeding the sector’s growth. Financially, the wet-lease model presents significant challenges. Payments for wet leases are denominated in US dollars, while Nigerian airlines generate revenue in the depreciated Nigerian Naira. This currency mismatch exposes operators to considerable financial risk, depletes the country’s foreign exchange reserves, and complicates long-term strategic planning. The high costs associated with wet leasing compel airlines to increase ticket prices, thereby restricting the expansion of domestic air travel and diminishing the competitiveness of Nigerian carriers relative to foreign airlines. Operationally, wet leasing limits local control over maintenance schedules and necessitates reliance on foreign crews and technical personnel. This reliance stifles the development of indigenous expertise and perpetuates dependence on external partners. The recent grounding of several MD-11 aircraft due to safety concerns has further tightened the availability of wet-leased planes, potentially triggering market adjustments and heightened scrutiny from investors. Efforts to Reform and Build Capacity Industry stakeholders have commended the Minister of Aviation and Aerospace Development, Festus Keyamo, for initiatives aimed at addressing these systemic issues. A notable development was the domestication of the Cape Town Convention (CTC) last year, which aligns Nigeria’s legal framework with international standards to facilitate aviation financing. The CTC is designed to reduce lender risk, lower borrowing costs, and streamline asset recovery processes, thereby creating conditions conducive to more favorable dry-lease agreements in the future. Nonetheless, experts warn that the benefits of the CTC may take up to five years to fully materialize. In the interim, Nigerian airlines remain largely excluded from the global dry-lease market due to historical regulatory non-compliance, necessitating continued reliance on wet leases. Competitors may seek to negotiate better lease terms or invest in expanding their own fleets to reduce dependency, but such transitions require substantial time and capital investment. As Nigeria’s aviation sector contends with these challenges, the emphasis remains on enhancing local capacity, improving regulatory adherence, and fostering a more sustainable business environment. Until these objectives are achieved, the predominance of wet-leased aircraft will continue to define both the opportunities and obstacles facing the industry.