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Middle East and African carriers expanding their fleets in 2010 and beyond: Share Wrap


All of the listed Middle Eastern airline shares were lower yesterday, with Jazeera down 2.0%, Kuwait National Airways slipping 1.8% and Air Arabia 1.1% weaker. Among the African carriers, Kenya Airways’ shares slipped 0.9%, while shares in 1time Holdings gained 2.2%.

Several Middle Eastern and African carriers have been in the news this week, with a series of aircraft orders and/or confirmations, aircraft deliveries and aircraft leasing news (some of which has been associated with the Bahrain International Airshow), as follows:

Middle Eastern and African carrier’s fleet news: Week commencing 18-Jan-2010




Gulf Air



Gulf Air and Embraer signed a preliminary agreement for the lease of two E170s on 21-Jan-2010. The aircraft are scheduled for delivery in 1Q2010. The carrier also took elivery of its 14th A320 aircraft on 20-Jan-2010



Yemenia signed a firm contract on 21-Jan-2010 for the purchase of ten A320 aircraft from Airbus, following an MoU signed at the Dubai Air Show. The aircraft, configured with 138 Economy and 12 Business-class seats, will replace the carrier's existing fleet of single aisle and widebody aircraft



Emirates announced the delivery of its eighth A380 aircraft on 18-Jan-2010. The aircraft is the 25th A380 delivery from Airbus and 6,000th aircraft produced by Airbus in 40 years


Mitsubishi Regional Jet

Reportedly announced talks with Mitsubishi Aircraft Corporation, regarding the manufacturer’s Mitsubishi Regional Jet (MRJ), which is expected to enter commercial service in 2014. The carrier also stated it expects to take delivery of three aircraft in 2010




Rwandair stated it expects to acquire more B767 and B737-800 aircraft in Mar-2010 to increase capacity



ASKY, Togo’s first private airline which officially launched operations on 15-Jan-2010, stated it currently in negotiations for a third aircraft. The carrier currently operates two B737-800s.

Ethiopian Airlines

Boeing  Bombardier

Has ordered ten B737-800s, increasing its aircraft orders to 45. Eight Q400s are due for delivery in Mar-2010, five 777-200LRs in Nov-2010, ten 787s due in Jul-2011, and 12 A350s in 2016. 

Air Arabia Maroc


Stated AirArabia Group’s order for 44 Airbus aircraft, scheduled for delivery over the next five years, may not be sufficient for the expanding LCC. Air Arabia Maroc alone plans to add two aircraft to its Casablanca fleet in 2010, and, if market conditions permit, would add three aircraft p/a until its reaches 17-20 aircraft.  

Sub-Saharan Africa’s economy to expand by 3.8% in 2010; per-capital incomes drops in 2009

In other Africa news, The World Bank stated it expects the sub-Saharan Africa’s economy to expand by 3.8% in 2010 and 4.6% in 2011 (compared to growth of approximately 0.6% in 2009), as the global recession eases, although export demand may wane in 2H2010.

The Word Bank commented, “the overall strength of the recovery will depend on the growth performance in key export markets and investment partners, particularly the United Sates, the European Union, and China”. The recovery in sub-Saharan Africa “is projected to be modest and fragile.”    

Meanwhile, per-capita income in sub-Saharan Africa dropped for the first time in a decade in 2009, with an additional 7 million people falling into poverty.

Selected African and Middle Eastern airlines share price movements (% change): 21-Jan-2010

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