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Taxes, Infrastructure, Others Top IATA Agenda at AACO

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iata-agenda

By Modupe Gbadeyanka

The International Air Transport Association (IATA) has highlighted four priorities in the Middle East and North Africa (MENA) which must be addressed for aviation to deliver maximum economic and social benefits.

These issues are sufficient and affordable infrastructure capacity (including air traffic management), aligned with user needs; curbing the spate of unprecedented increases in taxes and charges over the last year; aligning consumer protection regulations with global standards; enhancing security efforts and infrastructure in MENA reflects the foresight of Governments in the region to capture aviation’s economic and social benefits.

It was gathered that passenger demand in MENA is set to expand by 4.8 percent each year on average over the next 20 years, to become a market of 400 million passengers in 2035.

If that demand is met, the number of jobs supported by aviation in the region will grow from 2.4 million to 3.9 million over the same period. And aviation’s contribution to regional GDP will increase from $157.2 billion to $359.5 billion.

“Aviation is the business of freedom. Its success generates prosperity. A safe, secure, efficient and sustainable air transport industry contributes to the welfare of nations. Strengthening aviation, in partnership with governments, pays huge social and economic dividends.

“Airlines in MENA face very different business challenges. But whether building or protecting competitiveness, cost-efficient infrastructure, global standards, reasonable costs and secure operations are critical,” said Alexandre de Juniac, IATA’s Director General and CEO, during his opening remarks at the Arab Air Carriers Organization (AACO) 49th Annual General Meeting in Casablanca, Morocco.

De Juniac urged the region to address four key areas:

Infrastructure: “Infrastructure in MENA reflects the foresight of Governments in the region to capture aviation’s economic and social benefits. However to keep this competitive advantage, continuous consultation is needed so that capital expenditure aligns with industry growth, required service levels and acceptable costs,” said de Juniac.

De Juniac also sounded a note of caution on infrastructure privatization and urged governments to effectively balance public and private interests. “The desire to harness commercial discipline in managing airports is understandable. But, despite many airport privatizations around the world we have not seen any outcomes that have truly met expectations. It’s important to learn from experiences elsewhere, especially ensuring that any privatization is driven by real user consultation throughout the process,” said de Juniac.

De Juniac also called for cooperation to modernize air traffic management (ATM) in the region. “Studies show that the average ATM delay in the Gulf is 29 minutes with the potential to double by 2025. Without an increase in the overall efficiency of the ATM systems in the region through improved airspace design, MENA’s world-class hubs will be compromised with gridlock. We appreciate the many programs that are in progress – including the GCC Air Navigation Committee, the Middle East ATM Enhancement Program and others. But we must drive these efforts even harder to achieve a real breakthrough,” said de Juniac.

Rising costs: IATA urged cooperation to reverse unprecedented rises in taxes and charges – about $700 million in extra costs in 2015 alone. “Every dollar that a passenger spends in the region creates jobs and spreads prosperity. And every dollar collected in taxes or charges is an incentive for travelers to go elsewhere. A low cost structure is a key component of the region’s success—particularly in the Gulf,” said de Juniac.

Consumer Protection Regulations: IATA urged global standards to guide the proliferation of consumer protection initiatives in the region. Regulators in Saudi Arabia, Oman, Qatar, Jordan and the Arab Civil Aviation Commission are in various stages of activity in this regard. De Juniac called on governments in the region to keep the global standards and recommended practices arrived at through the processes of the International Civil Aviation Organization (ICAO) at the core of any developments.

Security: Security is a global issue. Keeping aviation secure is integral to a state’s responsibility for national security as highlighted in a UN Security Council Resolution earlier this year. Challenges include insider threats, landside exposure at airports, overflight of conflict zones, and cyber security. “Security is clearly a government responsibility. To stay a step ahead of those who would do aviation harm, intelligence gathering by governments and information sharing among governments and with industry is essential. Industry also plays a vital role in supporting their efforts. It’s a top priority for IATA and we will become even more active,” said de Juniac.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Airlines Face Fresh Turbulence Over Jet Fuel Scarcity

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Jet Fuel Scarcity

By Adedapo Adesanya

The National Association of Aircraft Pilots and Engineers (NAAPE) has revealed that Nigerian airlines are battling a severe jet fuel crisis, triggered by soaring jet fuel prices and supply shortages.

This is the latest blow to the aviation industry, which escaped an industrial action by airline operators over the price of jet fuel.

The latest development is increasing costs, disrupting flights and creating concerns about operational safety and sustainability.

According to Reuters, the persistent scarcity of jet fuel has triggered ⁠widespread operational challenges, including flight delays, route adjustments and extended crew duty periods, as airlines struggle to manage schedules amid rising costs.

According to the President of the association, Captain Bunmi Gindeh, the fuel shortages were pushing crews beyond planned limits, increasing fatigue and potentially eroding safety margins in an industry governed by strict rest regulations.

According to local carrier Rano Air, it revealed that jet fuel prices had more than quadrupled, as well as made some routes commercially unsustainable, forcing operational adjustments.

Other carriers have also begun rescheduling or cancelling flights and cutting unprofitable routes, industry ‌sources ⁠cited by Reuters said.

This comes at a difficult time for Nigeria’s aviation sector, already strained by foreign-exchange volatility, high aircraft maintenance costs, airport infrastructure strains and fuel price swings.

Airlines group, Airline Operators of Nigeria (AON), last month threatened to suspend operations over what they described as crippling and artificially inflated jet fuel prices.

Nigeria’s airline industry carries millions ⁠of passengers annually across an extensive domestic network and plays a critical role in connecting cities where road travel is often slow or insecure, making reliable air services economically and socially important.

The publication reported that the Nigerian Midstream ⁠and Downstream Petroleum Regulatory Authority (NMDPRA) has said fuel prices would not be capped, adding that any decisions on deregulated products would be formally communicated.

The crisis is worsening existing problems in Nigeria’s aviation sector, including forex instability, expensive aircraft maintenance and weak infrastructure.

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FG Unveils Leasing Initiative to Cut Airlines’ Fleet Acquisition Costs

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By Adedapo Adesanya

The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.

The minister of aviation and aerospace development, Mr Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.

Mr Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.

“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.

According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.

Mr Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.

“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.

The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.

Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.

Airlines in Nigeria have come into focus in recent weeks due to renewed concerns over the financial sustainability of operators, which almost forced them to suspend operations last month. However, the Bola Tinubu-led government approved a 30 per cent relief on debts owed by local ‌airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and ​regulators to reach a ​fair jet fuel price.

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Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380

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Emirates A380 Starlink

By Aduragbemi Omiyale

Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.

The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.

The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.

The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.

With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.

The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.

So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.

As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.

Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.

Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.

Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.

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