Turkey’s Pegasus Airlines to acquire Czech Airlines, Smartwings for EUR 154 mn

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What we're tracking today

TODAY: Turkey’s Pegasus Airlines to acquire Czech Airlines + Smartwings

Good morning, friends. It’s another busy day in logistics, led by a spate of M&A updates from the aviation industry in our region and across the world. We also have the latest on Saudi logistics center projects as Mawani works to ramp up capacity across ports. Let’s dive right in.

THE BIG LOGISTICS STORY- Boeing wraps Spirit AeroSystems acquisition: Boeing has closed its USD 4.7 bn acquisition of the world’s largest aerostructures manufacturer Spirit AeroSystems, according to a press release. The planemaker is taking over Spirit's Boeing-related commercial production operations, including fuselages for the 737 model and other major structures for the 767, 777, and 787 Dreamliners.

What is Boeing gaining? The transaction will integrate Boeing's largest spare parts supplier into its operation, expanding its global maintenance, repair, and overhaul (MRO) services footprint, while adding Spirit's rotable, lease, and exchange portfolio. Meanwhile, the US-based jet-maker will also take up portions of Spirit's operations in Belfast, Northern Ireland, with the site operating as an independent subsidiary branded as Short Brothers.

REMEMBER- Airbus also snapped up a slice of the Spirit cake: Rival Airbus acquired parts of Spirit and integrated them into its supply chain earlier this year, taking over operations of assets in Morocco, the US, France, and the UK.

Background: Boeing began planning to acquire the company as early as February 2024, before clinching approval from Spirit’s shareholders earlier this year. Spirit received up to USD 350 mn from Boeing and up to USD 107 mn from Airbus in advance payments back in 2024 to help it stay afloat as it continued to burn through funds after four consecutive years of losses.

HAPPENING TODAY-

The Rail Industry Summit will kick off today and run until Wednesday, 10 December in El Jadida, Morocco. The two-day event will bring together 130 exhibitors, 250 companies, and more than 900 participants from 15 countries, and will host business meetings, high-level panels, and hands-on workshops focused on new market trends and future rail strategies.

Consolidated Grunenfelder Saady Holding (CGS) will begin trading on Tadawul’s main market today, according to a Tadawul statement. The listing’s institutional tranche saw stellar demand, closing over 60x oversubscribed, while the retail portion was undersubscribed. The offer price — at SAR 10 per apiece — values the company at around SAR 1 bn at listing and will see selling shareholders raise roughly SAR 300 mn in gross proceeds.

WATCH THIS SPACE-

#1- We might see a final agreement for Mubarak Al Kabeer Port project soon: Kuwait’s Central Agency for Public Tenders has given the final green light for the direct award contract — set to be awarded to China State Construction Engineering Corporation, Kuwaiti news outlet Al-Rai reports. The contract — which reportedly stands at around KWD 1.2 bn — is expected to be signed this month and is set to advance the project closer to realization more than two years after China signed an MoU to explore the development of the project.

Background:While preliminary construction works on the project have already started, a final design and a definitive selection of the developer are still pending. The state-owned Chinese company signed an agreement earlier this year for the project’s study, design, and pre-implementation stages. The port is planned to ultimately feature 24 berths, with the goal of reaching a handling capacity of up to 8.1 mn containers a year. An adjacent industrial zone is also planned as part of the project.

#2- The Egypt-Israel USD 35 bn gas export agreement will remain in limbo for another month after the Leviathan partners pushed their deadline to obtain an export permit from Israel’s Energy Ministry to 31 December, according to a press release from partner NewMed Energy (pdf). The permit is required for the USD 35 bn gas export agreement between Egypt and Israel to take effect.

The future of the agreement has been uncertain for a while now, with Israel hitting pause on it in November “until its interests are secured and a fair price for the Israeli [gas] market is agreed upon.” Israeli Prime Minister Benjamin Netanyahu also reportedly froze the agreement in September amid rising Israeli-Egyptian tensions.

Some say the permit will likely come through but possibly at lower volumes, while others argue Israel is using the delay to secure a higher export price, industry publication Middle East Economic Survey (Mees) reported, citing people it said are familiar with the talks. The proposed volumes would likely be priced broadly in line with current export rates — around USD 5.5-6 per mn Btu at today’s Brent levels. In the interim, the partners could opt for smaller initial volumes now and push to renegotiate higher-priced volumes later, Mees said.

Some also question whether increasing imports from Leviathan beyond current levels is a good idea, with one industry source warning that concentrating too heavily on a single supplier comes with risks, pointing to Europe’s experience with Russian gas, Mees added.

MARKET WATCH-

#1- Oil prices fell this morning as markets await updates on the expected US interest rate cut and peace talks between Russia and Ukraine, Reuters reported. Brent crude futures dropped by USD 0.08 to trade at USD 62.41 / bbl as of 04:09 GMT, while US West Texas Intermediate (WTI) was down USD 0.13 to USD 58.75 / bbl.

The drop came on top of a dip of more than 2% from previous trading sessions in the wake of Iraq’s announcement that operations resumed in Qurna 2 oilfield, which is operated by the sanctioned Russian firm Lukoil.

#2- Baltic index takes a dip: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — decreased 1.2% to 2,694 points due to downward pressure across all segments. The capesize dropped 1.4% to 5,013, while the panamax index shed 1.3% to 1,813 points, and the smaller supramax index fell by 6 points to 1,430.

#3- Ukraine’s Black Sea strikes have spiked a surge in ship ins. prices by 200% to 250%, the head of Marine and Cargo at ins. firm Marsh Marcus Baker told The Financial Times. Several brokers indicated that cover for ships trading in the Black Sea has leapt from about 0.25% to 0.3% of a vessel’s value in early November, before surging further up to 0.75% this week.

What set it off? Kyiv stepped up its attacks on Russia’s shadow fleet of oil tankers –– including via drone strikes which hit sanctioned tankers Kairos and Virat off Turkey’s Black Sea coast. So far, the surge in war risk ins. is mainly affecting Russian-linked tankers and bulkers used in sanctioned trade.

Is this the endgame? Not likely. “Russia will escalate things into Ukraine, so we will probably see further increases in rates in the region,” Baker said. Owners are already pausing Moscow-related voyages and are re-pricing exposure, as concerns grow that vessels involved in legitimate trade are now becoming part of the playbook after a strike hit a Turkish ship en route to Russia off Senegal’s coasts.

DATA POINTS-

Suez Canal revenues saw partial recovery between July and early December, coming in at USD 1.97 bn, up 17.5% y-o-y, Suez Canal Authority head Osama Rabie said during a meeting with the IMF mission currently in town for the latest reviews of our USD 8 bn loan program. The number of vessels passing by was up 5.2% y-o-y to come in at 5.9k.

Looking ahead: Rabie expects canal revenues to hit USD 8 bn in the fiscal year 2026-2027 and USD 10 bn in fiscal year 2027-2028 as traffic continues to recover with renewed stability in the Red Sea.

REMEMBER- Suez Canal transit is projected to pick up in early 2026 — driven by the easing of regional tensions and a positive regional growth forecast from the IMF, Secretary General of the Cairo Chamber of Commerce’s International Transport and Logistics Division Amr Al Samdoni told EnterpriseAM in October. Shipping lines have been encouraged by the Israel-Hamas ceasefire agreement and are “developing quarterly plans” on the premise that the war and Houthi attacks cease completely, he added.

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CIRCLE YOUR CALENDAR-

Saudi Arabia is hosting the Saudi Airport Exhibition on Tuesday, 16 December until Wednesday, 17 December in Riyadh. Upward of 10k global attendees are expected to participate in the event from over 100 countries. The two-day event will focus on airport-related innovation, and will feature participation from Saudia, SolitAir, and Amadeus.

Saudi Arabia is hosting SkyMove Air Cargo MENA on Tuesday, 27 January until Wednesday, 28 January in Riyadh. The event is expected to welcome more than 600 attendees from over 60 countries. The event will unite the whole air cargo value chain, analyze market trends, mitigate potential challenges, and leverage emerging windows.

The UAE is hosting the Middle East ProcureTech Summit on Tuesday, 27 January until Wednesday, 28 January in Dubai. The two-day event will spotlight the shifts in the procurement sector, paying special attention to digital and cloud procurement, and provide a networking platform for executives and industry innovators.

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

Turkey’s low-cost airline Pegasus Airlines acquires Czech Airlines

Pegasus Airlines to absorb Czech Airlines + Smartwings: Turkey’s low-cost carrier (LCC) Pegasus Airlines acquired Smartwings Group from Prague City Air in a transaction valued at EUR 154 mn, as the airline sets its sights on expanding globally, according to a disclosure. The acquisition would see the Turkish LCC carrier take control of Smartwings Group’s carriers, Czech Airlines (CSA) and Smartwings, expanding its offerings in Central and Eastern Europe.

The transaction is scheduled to be completed in 2026, still contingent on obtaining the necessary approvals from regulators in the Czech Republic, as well as Slovakia, Poland, and Hungary, where Smartwings Group operates, Reuters reports.

What’s on the menu? Together, Czech Airlines and Smartwings have a combined fleet of 47 jets, with Smartwings flying to a network of 80 destinations across 20 countries. Smartwings Group generated a top line of about EUR 1 bn in 2024, the newswire adds.

About Pegasus Airlines: Founded in 1992, the Turkish carrier has seen robust expansion over the last two decades, expanding its fleet from 14 to 127 jets. Pegasus now serves around 158 destinations across 55 countries.

Fleet expansion is on the horizon: Turkey’s Pegasus Airlines ordered 36 of the Airbus narrow-body A321neo aircraft back in 2023, which should be delivered by the end of 2029.

Mawani inks contracts for two new logistics hubs, valued at some SAR 229 mn

Saudi Ports Authority (Mawani) is set to get two logistics center projects at a combined investment ticket of more than SAR 229 mn, after signing two agreements with the developers yesterday. Arabian Agricultural Services Company (Arasco) will develop a storage and distribution center in Dammam’s King Abdulaziz Port on the Arabian Gulf, while Q Saudi Trading Company will develop an integrated logistics center in Yanbu on the Red Sea, according to statements (here and here).

#1- The Dammam project: Arasco will develop a 40k sqm facility at an investment ticket of SAR 200 mn. The facility is set to feature warehouses with a storage capacity of up to 100k metric tons, an integrated truck-loading zone, conveyor systems, and ship-unloading equipment. The new project is forecasted to generate over 3k direct and indirect jobs.

REMEMBER- Dammam is now a hotspot for logistics investments, with a long lineup of under-development and recently launched projects around King Abdulaziz Port. Earlier in November, Hizon secured a contract to develop a SAR 30 mn logistics zone, and furnishing firm Abyat launched a new SAR 100 mn logistics center at the port. Mawani and Saudi Global Ports also inaugurated a SAR 1.3 bn logistics park in the same month.

About Arasco: The Riyadh-based firm is a leading food supply and food security company, with some 3k employees, according to its website. At present, Arasco has business segments and factories in Riyadh, Kharj, and Dammam, and is one of the largest producers of animal feed in the region.

#2- Over in Yanbu Commercial Port, Q Saudi Trading Company will develop an integrated logistics center valued at over SAR 29 mn. The facility will span some 120.5k sqm and will feature cargo and storage redistribution facilities that will bolster capacity at the port to meet the growing demand from national and international shipping firms.

About Q Saudi Trading Company: Launched in 2019, the homegrown firm offers a plethora of logistics services, including overseeing port operations, stevedoring, customs clearance, and warehousing across the Kingdom, according to its website. The company handled some 2.5 mn tons of goods in 2024.

NMDC Dredging & Marine’s Niels de Bruijn talks growth plans for 2026

Coffee with NMDC Dredging & Marine CEO Niels de Bruijn: EnterpriseAM sat down with Niels de Bruijn, CEO of NMDC Dredging & Marine, on the sidelines of this year’s TransMea forum. As the subsidiary of the Abu Dhabi-based marine services leader NMDC Group expands its regional and international presence, we got Niels’s insights on their current and planned projects, and on how his company is navigating expansion amid a volatile period for global trade and regional geopolitics.

EnterpriseAM: What are some exciting developments you see happening in the regional logistics sector, and how is your company capitalizing on these?

Niels de Bruijn (NB): We are excited about lots of development in ports and infrastructure in the UAE and the region. NMDC Dredging & Marine is also involved in clean energy projects, such as the Ruwais LNG terminal, where several ongoing development projects aim to revamp oil and gas infrastructure.

We also now know that oil and gas are here to stay. The market is set to stay stable and not go away for the next 10 to 20 years because energy needs are doubling. Experts predict that oil demand will remain at 100 mn bbl/d until 2040. This doesn’t take away from the fact that sustainable energy sources, including wind, solar, and nuclear energy are needed – but we still need oil and gas.

This stable outlook is set to translate into more investment in the logistics of exporting LNG and oil, not only in the UAE but also in Saudi Arabia and Qatar. Building on this, we also expect that the container business will continue to grow, meaning demand for ports, bigger ports, and deeper ports will also grow.

But of course, some risks remain. While generally optimistic, NMDC acknowledges the risk that the market can be disturbed by ongoing geopolitical tensions.

EnterpriseAM: In response to the volatile global trade environment, what strategic measures is NMDC taking regarding international expansion?

NB: NMDC is focused on diversifying its projects and expanding on an international scale. Working in different markets helps the company tap into new windows and keep its growth moving. For example, the company’s primary historical focus was the Middle East, mainly Abu Dhabi, Egypt, Oman, and Saudi Arabia. Now, NMDC is running projects in Taiwan and Manila. Looking ahead, the company is exploring select markets in Asia and North Africa.

EnterpriseAM: What are some milestones your company is striving toward over the coming year (2026)?

NB: We are still hoping for some more extension projects within the Suez Canal, where we've been working since 2014, with traffic hopefully picking up and returning to the canal as global trade routes normalize. This could include the duplication of the Suez Canal, as well as the expansion of its southern parts. These would be development projects we would really be keen on following and being a part of.

EnterpriseAM: Are you looking into expanding your projects portfolio in Egypt?

NB: Egypt has been an important market for NMDC for many years, and we remain optimistic about its long-term potential. Last year, we delivered four major projects across the Suez Canal, Alexandria, Damietta, and Safaga, while this year has naturally seen a quieter period. As trade flows normalize, we expect to see renewed momentum.

We are also following major national projects, and see that there are several which fit well with NMDC’s strengths and to which NMDC has the potential to contribute its marine dredging expertise, as well as its unique capabilities and industry knowledge in infrastructure and development.

Qatar Airways Group appoints Hamad Ali Al Khater as new CEO

#1- Qatar Airways Group taps new CEO: Qatar Airways Group tapped Hamad Ali Al Khater (LinkedIn) as Group Chief Executive Officer (CEO), effective from 7 December 2025, according to a press release. Al Khater — who succeeds Engineer Badr Mohammed Al Meer — previously served as Hamad International Airport’s chief operating officer, bringing in experience in infrastructure expansions and passenger operations.

#2- UAE’s Maryam Al Balooshi tapped to lead ICAO’s environmental committee: Senior Manager of the Environmental Affairs Office at the General Civil Aviation Authority (GCAA) Maryam Al Balooshi (LinkedIn) was tapped as chair of the Committee on Aviation Environmental Protection (CAEP) of the International Civil Aviation Organization (ICAO), state news agency Wam reports. The appointment makes Al Balooshi the first person from the Middle East to take up the role.

The role will see Al Balooshi oversee international efforts to reduce the aviation sector’s environmental impact. The committee’s focus areas include aircraft noise and engine emissions, sustainable aviation fuels, and environmental management tools.

MENA Biofuels partners with Saybolt to launch UAE’s first SAF testing facility

SUSTAINABLE AVIATION FUEL-

MENA Biofuels + Saybolt to launch first SAF testing facility in Fujairah: MENA Biofuels, a subsidiary of Dubai-based Mercantile & Maritime Group, partnered with Netherlands-based Saybolt International to develop the UAE’s first independent sustainable aviation fuel (SAF) testing and certification lab in Fujairah, state news agency Wam reports.

The details: The facility, located in Fujairah Oil Industry Zone, will enable precise evaluation of SAF properties, traceability of feedstock origins, and verification of lifecycle emissions.

ICYMI- MENA Biofuels started construction on the UAE’s first commercial SAF plant — also in Fujairah Oil Industry Zone — last month, which is set to produce 250 mn liters of SAF annually once the two phases are completed. The UAE is looking to produce 700 mn liters of the fuel per year by 2031. Masdar and Tadweer are also developing a commercial-scale waste-to-SAF project in Abu Dhabi, while Lootah Biofuels recently began supplying SAF in the UAE, produced from cooking oil and waste-derived fats.

SHIPPING + MARITIME-

#1- Fincantieri inks Gulf tie-up with Asry in Bahrain: Italian shipbuilder Fincantieri and Bahrain’s Arab Shipbuilding and Repair Yard (Asry) signed an industrial cooperation agreement to explore collaborations on ship building and repair, according to a press release. The MoU — signed on the sidelines of the 46th GCC summit last week — will see the pair assess joint design and construction of offshore vessels and the possibility of tapping into the larger Gulf exports market. The pair will also explore rolling out maintenance, repair, and overhaul (MRO) services.

#2- A new Caspian Sea shipping service linking Iran and Russia is set to launch in 2Q 2026, opening the first commercial maritime corridor between Russia’s Ulyanovsk province and Iran’s Astara port, the state-owned Iranian outlet Mehr News Agency reports. The route will initially prioritize moving grains and vegetable oils, with other types of goods such as petrochemicals, plastic, tea, and citrus fruits to be covered in the future.

REGULATION WATCH-

Egypt’s General Authority for Investment and Freezones rolled out an updated valuation framework and launched a digital review platform, according to a statement. The revised framework standardizes accounting and valuation practices for mergers, demergers, and legal restructurings and introduces unified controls for prior financial valuations. Meanwhile, the new electronic platform will allow investors to submit and track financial review requests online through a unified interface with real-time updates and notifications to reduce turnaround times and improve communication with investors.

EQUIPMENT-

Asyad completes a 25-ton airlift for OQRPI: Omani logistics provider Asyad Group has successfully transported 25 tons of heavy equipment from Italy to Oman for OQ Refineries and Petrochemical Industries (OQRPI), according to a press release released last week. The execution of this mission required the utilization of a Boeing 747 cargo charter — which delivered the essential equipment through Asyad’s logistics team to OQRPI’s warehouse facility in Sohar.

South Korea’s HD Hyundai to build USD 2 bn shipyard in India

HD Hyundai eyes USD 2 bn shipyard in India: South Korea’s shipbuilding giant HD Hyundai inked an agreement with the Indian government to establish a USD 2 bn shipyard at Madurai in the southern state of Tamil Nadu, Splash247 reports. The agreement comes a few weeks after the Indian government announced a c. USD 7.8 bn investment package to boost its shipbuilding and maritime sector.

Not the first sign of maritime amity: HD Hyundai signed an MoU last July with India’s state-owned Cochin Shipyard — the subcontinent’s largest public sector yard — to kick off collaboration in areas including design and procurement support, productivity enhancement, and human capital development.

REMEMBER- India wants to become among the top 10 shipbuilding powers by 2030, and among the top five by 2047. Currently, India accounts for less than 1% of the sector’s global market.

Where should India start? New Delhi could start its shipbuilding push by specializing in building vessels of lower value, as Chinese shipyards zero in on more complicated tonnage, Lloyd’s List reported earlier this year. By focusing on general cargo carriers — an old fleet with high replacement demand — India can step in, as Beijing’s shipyards lose interest in smaller, lower-value tonnage.

German shipping giant Hapag-Lloyd (HL) joined a line-up of bidders vying for the acquisition of Israel’s largest container carrier ZIM, Israeli business news outlet Globes reported. The offer is at a preliminary stage, and formal negotiations have not yet begun, the news outlet added.

But the bid turned heads in Israel due to Saudi and Qatari ownership in HL. “An acquisition of ZIM by Hapag-Lloyd… represents a direct danger to the security of the country,” ZIM workers Committee Chairperson Oren Ksafim told Globes. Saudi’s PIF and Qatar Holding together own a combined stake of 22.5% in the German shipping firm.

Who else is in the mix? Other global shipping majors are already in the mix, with Maersk and MSC Mediterranean Shipping also expressing interest in the Israeli player. The competition to snap up ZIM comes after the board decided to accept acquisition bids following an offer filed by ZIM’s CEO of eight years, Eli Glickman, in partnership with Israeli investor Rami Ungar, the news outlet said.

ZIM has a current market cap of USD 2.4 bn, and most analysts following the shippers’ stocks view its stock as overvalued — with three out of the seven observing analysts recommending selling its stocks, three recommending to hold, and just one recommending to buy, Globes reported, citing The Wall Street Journal.

Calendar

DECEMBER

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

10-11 December (Wednesday-Thursday): GAD World, Lisbon, Portugal

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

21-22 January (Wednesday-Thursday):IOSA Operator Workshop, Dubai, UAE.

FEBRUARY 2026

3-4 February (Tuesday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

9-11 February (Monday-Wednesday): Future Warehouses & Logistics, Dubai, UAE.

10-12 February (Tuesday-Thursday): Sustainable Aviation Future MENA, Dubai, UAE.

12 February (Thursday): Technical Seminar on Marine Biofuels, London, UK.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

17-19 February (Tuesday-Thursday): WorldLegal Symposium (WLS), Warsaw, Poland.

20-22 February (Friday-Sunday): Dubai Freight Camp, Dubai, UAE.

24-25 February (Tuesday-Wednesday): Green Shipping Summit, Athens, Greece.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

25-27 February (Wednesday-Friday): Air Law Treaty Workshop Tanzania (Third Edition), Dar es Salaam, Tanzania.

MARCH 2026

5-6 March (Thursday-Friday): CargoIS Forum, Miami, United States.

9-13 March (Monday-Friday): WCA Worldwide Conference, Singapore.

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

18-19 March (Wednesday-Thursday): IntraLogisteX, Birmingham, United Kingdom.

18-19 March (Wednesday-Thursday): Green Marine Transport Conference, Amsterdam, The Netherlands.

26 March (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

APRIL 2026

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

16-17 April (Thursday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

MAY 2026

19-21 May (Tuesday-Thursday): Ground Handling Conference (IGHC), Cairo, Egypt.

12-14 May (Tuesday-Thursday):Aviation Energy Forum (AEF), Paris, France.

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