An avalanche of aviation news

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TODAY: Platts launches new daily Dry Bulk Index + flight bookings to the Middle East are taking a hit

Good morning, lovely people. It’s day three of the Dubai Airshow, which means we have yet another avalanche of aviation-related news, from new maintenance and overhaul facilities popping up in the region to fresh batches of aircraft orders.

HAPPENING THIS WEEK-

South Africa’s President Cyril Ramaphosa is set to embark on his first official visit to Qatar today to meet with Emir Tamim bin Hamad Al Thani, according to a statement. The two leaders are expected to discuss enhancing ties in trade, investment, and tourism. Ramaphosa will be accompanied by a high-level business delegation that will explore cooperation in energy, mining, agro-processing, retail, shipbuilding, and tourism.

Platts launches new dry bulk index: Platts, part of S&P Global Commodity, has launched a new dry bulk index priced in USD per day, the first of its kind to be developed in over three decades, according to a press release. The index aims to reflect freight rates for various commodities across 35 major cargo routes. The index seeks to allow freight market participants and investors to efficiently observe daily changes in dry bulk shipping prices. The index closes on the days where London or Singapore are on holiday.

The details: The Platts Dry Index is set to be calculated in ton-miles, which is determined by multiplying the volume of cargo moved in metric tons by the distance traveled in miles. The value of the individual indexes is determined by the volume of vessel movements — capesize, kamsarmax, ultramax, and supramax — between trading regions over the last three years using Platt’s trade flow system Commodities At Sea.

Want to access the index? The index appears in Platts subscription service, Dry Freight Wire, or by entering the codes for the indices you want to look at on its shipping alert page.

DISRUPTION WATCH-

Commercial airlines are feeling the impact of the war on Gaza, with bookings in the region down since Israel began its assault on the Strip, reports CNBC. Airlines saw a drop in bookings to the Middle East in October, and some expect an impact on their bottomline, according to CNBC sources. International flight bookings to the region in the three weeks following 7 October were 5% points below the prior three-week period, and ticket issuance from the region was 12% lower than 2019 levels, compared to just 3% below 2019 levels before the war, according to travel analytics firm ForwardKeys.

The countries most affected in the region: International arrivals to the Middle East meanwhile fell by 26 percentage points in the three weeks following 7 October, with the biggest drops seen for travelers to Israel, followed by Saudi Arabia, Jordan and Lebanon.

Regional airlines are not concerned: The UAE’s Etihad affirmed that it will continue flights to Israel as long as it’s safe, despite a decline in demand for flights to Israel, Etihad CEO Antonoaldo Neves told CNBC. Emirates airline President Tim Clark also downplayed the impacts of the war on travel in the region, saying that bookings will likely not be affected, referencing other attractions and events happening in Dubai that continue to attract travelers.

But global airlines are still wary: American carrierUnited Airlines will not resume flights to Tel Aviv, Israel from Newark, New Jersey, Reuters quotes a company spokesperson as saying. Previous reports that the flights would be resuming were due to an error by the airline’s public relations agency, the spokesman said.

Emirates is holding off on a purchase of Airbus A350-1000 jets, blaming a dispute with engine maker Rolls-Royce over the durability of its engines, according to Reuters. If Rolls-Royce improved their durability and maintenance costs, Emirates would be prepared to order some 35-50 jets, Emirates President Tim Clark told the outlet. Airbus Chief Commercial Officer Christian Scherer defended the engine and said that EgyptAir just made an order for 10 smaller A350-900s, the outlet adds. Emirates had previously ordered 50 of the A350-900 — but has yet to take deliveries.

This comes after the airline secured a USD 52 bn agreement with Boeingfor an order of 90 Boeing 777X and five 787s, which brings its fleet to 205 units. The airline also secured an order of 202 GE9X engines to power the 777X aircraft, taking its orders of the engine to 460 units at the Dubai Airshow.

WATCH THIS SPACE-Iraq is considering establishing a freezone for raw material imports that can be marketed to the private sector at competitive prices in IQD, as part of a package of measures to save FX, a government source told Iraqi News Agency (INA). The Iraqi government is also looking to secure trade agreements in local currency with China and India, INA quotes the official as saying.

DATA POINT-The Suez Canal Economic Zone ports in East and West Port Said and Al-Arish handled nearly 1.1 mn TEUs in 1Q of FY 2023/24, Al Masry Al Youm reports. They also recorded 12.5 mn tons of realized capacity, with 769 ships docking at the ports. East Port Said Port handled the bulk of these, with 11.1 mn tons and 938.4k TEUs handled, while West Port Said Port processed some 122.4 mn TEUs during the period. Al Arish Port recorded a capacity of 167k tons.

DATA POINT-Saudi ports saw a 5.31% y-o-y increase in the number of containers handled to 741.9 TEUs in October, the Saudi Ports Authority (Mawani) said in a statement. The total number of vessels rose by 5.46% y-o-y to 1k ships, and transshipments increased by 2.12% y-o-y to 290k TEUs.

MARKET WATCH-

Russian oil revenues down: Russian oil export revenues fell in October amid a drop in global crude oil prices and sanctions by the US against ships violating a Western price-cap on Russian oil, according to an International Energy Agency report. The country saw USD 18.34 bn in crude oil and petroleum-product exports, down from USD 25 mn in September.

HELP SUPPORT GAZANS-

Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than a mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century. The charities we’re listing below are organizations working on Gaza relief that we think you can trust if you want to make a donation.

#1- Egyptian Red Crescent Society is one of the Egypt’s leading providers of humanitarian and emergency medical services. The Egypt Red Crescent accepts donations in EGP online and is on Fawry with the service code 99981. You can also donate to the organization through this Banque du Caire account: 49/403/30 (EGP) or 1065/601/30 (USD — code: BCAIEGCX030).

#2- The Emirates Red Crescent Authority has launched the Tarahum — For Gaza campaign and is accepting donations online via What’s App, SMS, Apple Pay, credit card, or bank transfer to ADIB (AE370500000000020000417).

#3-The King Salman Humanitarian Aid and Relief Center has launched the Sahem campaign accepting donations via their website, mobile apps on Apple Store and Google Play, or bank transfer to Al Rajhi Bank (SA5580000504608018899998).

#4- UNICEF has been on the ground in Gaza since the start of the crisis, providing urgent supplies and aid. You can donate to the agency directly using your card in your local currency here.

ALSO- The folks at Talabat are processing donations for a range of Gaza relief appeals by charities including the Egyptian Food Bank, Misr El Kheir and the Emirates Red Crescent Authority’s Tarahum campaign. You can make the donation via the Talabat app using your credit card.

CIRCLE YOUR CALENDAR-

The IATA Slot Conference kicked off yesterday and will run until Friday at the Dubai World Trade Centre. The business meeting will host over 1k delegates, with representatives of more than 200 slot coordinated airports and over 225 airlines from across the world. The event allows the global airline community to meet for quick optimisation of planned schedules and to explore chances for growing routes and networks.

The Global Freight Summit 2023 is kicking off today and will run until Friday at the Coca Cola Arena, Dubai, UAE. Hosted by DP World, the event aims to create a platform for the international freight forwarding and supply chain communities, bringing together industry leaders and the global freight community to discuss challenges that are prevalent across the sector.

The first GCC-Egyptian Business Forum will be held on 22-23 November in Cairo, Egypt, Bahrain News Agency reports. The event is being held under the theme Business, Investment, Partnership, with a focus on investments in real estate, agriculture, the food industry, and tourism in the region. The event is hosted by the Federation of Egyptian Chambers of Commerce and organized in cooperation with the Federation of Gulf Cooperation Council.

The third Caspian Economic Forum will be held in mid-November in Iran, state-owned Islamic Republic News Agency reports. The event is set to focus on transportation, joint ventures, oil and gas, finance, banking and technical cooperation in Iran, with Alireza Jahangiri, Iran’s deputy foreign caspian sea affairs minister, calling on economic institutions to attend, IRNA adds. The exact location and dates of the forum have yet to be confirmed.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

EgyptAir orders 10 more widebodies + Saudia eyes Airbus expansion. PLUS: More from Oman Air, Air Arabia and Kuwait Airways

Day two of the Dubai Airshow saw another batch of new orders from regional airlines, with Airbus seeing more attention after a Boeing-heavy orderbook on the first day. Other airlines — like Saudia — are still in talks with aircraft manufacturers, which could potentially be finalized during the show.

EgyptAir orders 10 Airbus widebodies: National flag carrier EgyptAir has placed an order for 10 new A350-900 jets from European planemaker Airbus, the latter announced in a press release. The value of the contract was not disclosed, but the list price for the widebody model in question is USD 317.4 mn apiece, which would place the agreement at roughly USD 3.2 bn without price reductions, which are usually applied in the industry, according to AFP.

When will Egypt get the planes? The aircraft are scheduled to be delivered between 2025 and 2027, EgyptAir CEO Yehia Zakaria was quoted by Sky News Arabia as saying in a presser. He also added that EgyptAir will finance the contract.

Remember- EgyptAir also placed an order for 18 new aircraft from Boeing earlier this week, to be delivered between early 2025 and 2026. American outfit Air Lease Corp is providing the aircraft on a long-term lease.

WATCH THIS SPACE-

Saudia eyes Airbus expansion: Saudi Arabia’s flag carrier Saudia is reportedly considering a large expansion of its fleet with an addition of some 150 narrowbody aircraft, and is in early stage talks with Airbus about the A320 model, Bloomberg cites people close to the matter as saying.

Nothing final yet: The talks are not expected to be completed at the Dubai Airshow, and could still fall apart, the sources told Bloomberg. The size has been expanded from an original target of 100 planes, which could make it the largest in Saudia’s history, the sources added. An airline spokesperson said it is still considering multiple proposals, the outlet cites a Saudia spokesperson as saying, with Airbus representatives declining to comment, Bloomberg writes.

OTHER AVIATION NEWS-

Oman Air has announced the order and delivery of its first Boeing converted freighter, which is the Muscat-based carrier’s first dedicated cargo aircraft, according to a press release. Oman Air Cargo’s volume increased by 42% y-o-y in 1H 2023, driven primarily by capacity expansion in its passenger fleet, according to the release. The new 737-800BCF freighter, which can carry 23.9 tonnes of freight, “will contribute to the growth of the air cargo logistics sector in Oman and beyond, will be based at our strategically located Muscat hub and will enhance our ability to connect East and West,” the airline said.

Aircraft engine manufacturerCFMplans to supply the UAE’s Air Arabia with 240 LEAP-1A enginesto boost its fleet capacity and operations, including powering its existing order of 120 Airbus A320neo family aircrafts, according to a statement. The agreement, signed at the 2023 Dubai Airshow, has a total book value of USD 3.36 bn, and includes a multi-year services agreement and spare engines.

Kuwait Airways is not happy about Boeing delivery delays:Kuwait Airways is expecting compensation from Airbus for delays in delivery of commercial jets, chairman of the airline Abdulmohsen Alfagaan said in an interview with Reuters at the Dubai Airshow. The delays forced the airline to adjust its network and reschedule flights, Alfagaan said, without specifying the length of delays or the type of aircraft it has been experiencing issues with, the outlet writes. The airline reportedly has orders for seven Airbus A330-900 and two A350-900 wide-body jets, as well as nine A321neo and one A320neo narrow-bodies, according to data picked up by Reuters.

The airline is unlikely to place new aircraft orders for three or four years, and is reducing frequencies of certain Middle East and Turkey routes due to a 50% drop in demand caused by the Israel-Hamas war, Alfagaan added.

Emirates to build new USD 950 mn MRO engineering facility in Dubai + Joramco inks maintenance agreements with Gulf Air, Emirates

The UAE’s Emirates plans to build an engineering facility for maintenance, repairs and overhauls in Dubai World Central (DWC), according to a statement. Emirates will invest USD 950 mn to build the engineering facility, which would allow the airline to become entirely self-sufficient in maintenance, repair, and overhaul, covering its needs into the 2040s, the statement adds.

Details: The airline claims that the engineering complex, which will span over 1 mn square meters, will be the largest and most advanced of its kind to be operated by any airline, the statement said. The first phase of the project will consist of eight maintenance hangars, one paint hangar, an engine run-up facility, an estimated 20 support workshops, storage facilities, and administration offices. It will initially handle spillover work and heavy maintenance programs, while Emirates’ existing engineering center at Dubai International (DXB) will continue to support operations.

Going green: The project seeks to integrate sustainability into the complex’s design through the use of green building materials, including the installation of solar panels on roofs across the entire complex and recycling systems for oils and wastewater.

Project timeline: Construction work for the first phase of the project is expected to begin in 2024 and to be completed in 2027, Emirates Group Executive Vice President Ali Mubarak Al Soori said in the statement. The airline could further expand the facility in the second phase, with plans to potentially double the complex’s capacity depending on the growth and operational requirements of Emirates’ fleet.

OTHER AVIATION NEWS-

Joramco expands MRO partnership with Gulf Air…: Gulf Air has extended its partnership with Dubai Aersopace Enterprise’s aircraft maintenance, repair, and overhaul (MRO) engineering arm, Jordan Aircraft Maintenance Limited (Joramco), for aircraft maintenance services at Joramco’s MRO facility at the Queen Alia International Airport in Jordan, according to a press release. The agreement will see Joramco providing heavy maintenance checks for different aircraft types for Gulf Air’s fleet for the next four years, the press release said.

…and with Emirates: Joramco also inked a new agreement with Emirates to provide nose-to-tail Boeing 777 maintenance services to the airline until the end of 2025, according to a separate release.

Air Arabia’s bottomline grew 26% y-o-y in Q3 2023 on the back of rising passenger demand

Emirati low-cost carrier Air Arabiasaw its net income rise 26% y-o-y to reach AED522 mn in 3Q 2023, according to quarterly financials (pdf). Revenues inched up by 1% y-o-y to AED 1.63 bn during the same period. This came as passenger volumes rose 21% y-o-y during the quarter.

On a 9M basis: The airline’s bottomline surged 53% y-o-y to AED 1.32 bn in 9M 2023, with revenues increasing 16% y-o-y to AED 4.45 bn.

What they said: “Air Arabia’s record performance in the third quarter of this year was driven by robust passenger demand and effective cost control measures implemented by the management team,” Chairman of Air Arabia Sheikh Abdullah Bin Mohamed Al Thani said in an earnings release.

Looking ahead: The airline remains “cautiously optimistic,” as airlines continue to navigate a “turbulent geopolitical and macroeconomic environment,” it said in the earnings release.

Egypt joins Afreximbank’s USD 2 bn food security agreement + Saudi Air Navigation Services subsidiary taps Nera for air traffic management support. PLUS: More from the IATF, Russia, Bahrain and Iraqi Airways

TRADE-

Egypt joins Afrixembank’s USD 2 bn food security initiative: Egypt inked a framework agreement for the African Export-Import Bank’s (Afreximbank) Export Agriculture for Food Security (ExAFS) Initiative, the bank said in a press release yesterday. Under the initiative, the bank will commit USD 2 bn to help tackle food security in Africa through boosting agricultural production and intra-African agricultural trade. The governments of Chad, Malawi, and Zimbabwe also inked the agreement during this week’s Intra-African Trade Fair in Cairo.

Egypt’s Intra-African Trade Fair saw the signing of agreements worth USD 10 bn, Al Ahram reports. The event is the second of its kind and brought together 75 countries and more than 1.6k companies. Egyptian Trade and Industry Minister Ahmed Samir highlighted the country’s interest in increasing trade and economic cooperation with other African nations.

AVIATION-

SANS inks agreement with Nera for air traffic management: Saudi Air Navigation Services (SANS) subsidiary Nera has inked an agreement with engineering firm Egis to leverage its expertise and know-how in air traffic management, airport development, design, operation, and maintenance in the Middle East and globally, according to a press release. Egis and Nera will work together on developing a list of projects for potential collaboration, the release adds.

ALSO WORTH KNOWING-

Russian airline Aeroflot is resuming four weekly flights from Sheremetyevo Airport, Russia to Abu Dhabi International Airport in the UAE. (Press Release)
Bahrain’s leading ship and rig repair yard Arab Shipbuilding and Repair Yard (ASRY) has launched its Infor CloudSuite Industrial Enterprise, a cloud-based resource planning system that digitizes its business, allows it to unify and automate its procurement, accounts, supply chain management, along with keeping track of orders, and other operations. (Press release)
Iraqi Airways will operate an additional flight to its route to Istanbul, Turkeyevery Friday starting 17 November. (Statement)

Boeing partners with Zero Petroleum for SAF + South Korean shipbuilder secured four of world’s largest ammonia carriers

Boeing + Zero Petroleum to partner on SAF:Boeing and Zero Petroleum are collaborating to test and analyze technologies to accelerate the supply of sustainable aviation fuels (SAF), according to a press release. Under the agreement, Boeing will jointly establish a testing program for Zero’s SAF — which is produced from air and water at the University of Sheffield’s Energy Innovation Centre (EIC).The collaboration will help Zero accelerate the qualification process to put their SAF up for commercial delivery by 2026.

ALSO WORTH KNOWING-

South Korean shipbuilder Hanwha Ocean will supply Greek shipping company Naftomar with four large ammonia carriers worth USD 496 mn. Delivery of the vessels — which are said to be the world’s largest ammonia carriers — is expected by the first half of 2027. (Splash)

Calendar

NOVEMBER

Mid-November: Third Caspian Economic Forum, Iran.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo, Egypt.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai, UAE.

15-17 November (Wednesday-Friday): Global Freight Summit 2023, Coca Cola Arena, Dubai, UAE.

17-18 November (Friday-Saturday): 17th Iran-Turkmenistan Joint Economic Commission, Ashgabat, Turkmenistan.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

21-23 November (Tuesday-Thursday): ARABAL 2023 Conference, Hilton Riyadh Hotel & Residences, Riyadh, Saudi Arabia.

22-23 November (Wednesday-Thursday): GCC-Egyptian Business Forum, Cairo, Egypt.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

4-6 December (Monday-Wednesday): ACE 23 Air Cargo Conference, Yas Island Hotel, Abu Dhabi, UAE

4-7 December (Monday-Thursday): Eurasian Economic Union (EAEU) exhibition, Tehran Permanent International Fairgrounds, Tehran, Iran.

10-11 December (Sunday-Monday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

12-14 December (Tuesday-Thursday): Food Africa Cairo 2023, Egypt International Exhibition Center, Cairo, Egypt.

18-20 December (Monday-Wednesday): International Exhibition of Transportation, Logistics, and Related Industries (Iran Trans Expo 2023), Imam Khomeini Grand Prayer Campus (Mossala), Tehran, Iran.

EVENTS WITH NO SET DATE

2H 2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H 2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d’Ivoire to be completed.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi – Suhar rail link to be announced.

King Salman Energy Park is set to become operational in 2024

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre, UAE.

12-15 February (Monday-Thursday): African Air Expo, Cape Town, South Africa.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai, UAE.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

APRIL 2024

30 April- 2 May(Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Hotel President Wilson, Geneva, Switzerland.

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

OCTOBER 2024

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

NOVEMBER 2024

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2025

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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