Ethiopian Airline crash threatens Air Peace $1.1bn deal with Boeing

By Odunewu Segun

The $1.1bn aircraft acquisition deal for the supply of 10 new B737 MAX aircraft entered into by Nigeria’s Air Peace with Boeing is being threatened by the decision of the federal government to ban 737 Max airplanes from flying into Nigeria’s airspace following a fatal crash in Ethiopia over the weekend.

Air Peace had signed the multi-million dollar pact with the US aircraft manufacturer, The Boeing Company, to buy 10 new B737 Max aircraft in 2018.

The agreement was signed at the United States Consulate in Lagos by the Chief Executive Officer of the airline, Mr Allen Onyema and Boeing Sales Director for West and Central Africa, Mr Larry Tolliver.

Although, National Daily could not ascertained how much has exchanged hands, but it gathered that a unit cost of the aircraft is $113m (N40bn).

On Tuesday, Air Peace had insisted it has no plan to cancel its order for 10 737-MAX 800 planes in spite of the uproar against the brand over recent crashes.

The airline Corporate Communications Manager, Mr Chris Iwarah, said any decision about cancelling the order would be premature.

“At this moment, it is premature to begin to talk about things and conclusions that have not been put in the public domain. Investigations into the crashes involving B737Max 800 are ongoing so it will not be fair at this time to begin to make definite comments on those issues,” he said.

The Air Peace spokesperson said the airline had not yet taken delivery of the ordered aircraft, adding that before that time, issues surrounding its safety must have been identified by global aviation experts.

Ethiopian Airlines has grounded all B-737-800 MAX aircraft in its fleet following Sunday’s crash of its Flight ET302, which killed all 157 persons on board.

The aircraft en route Nairobi from Addis Ababa, crashed six minutes after take-off around Bishoftu, 60km south-east of the Ethiopian capital.

The crash was the second involving the B737 MAX 800 aircraft in the past four months following October 2018 one involving a Lion Air plane, which plunged into the sea off Jakarta, in Indonesia, killing all 189 people on board.

Other carriers, including China have grounded the B737 MAX 800 aircraft in their fleets due to safety concerns.

The Nigeria Civil Aviation Authority, whose mandate it is to issue advisory, has already issued advisory that nobody should fly into Nigeria or out of Nigeria using Boeing 737 Max 8 and Max 9, pending the determination of the actual cause of the crash in Ethiopia and also pending the outcome of the response of the manufacturer, which is Messers Boeing.

According to the NCAA, regardless of the enormous safety records of the plane 737, it has caused concern in the world of aviation. “Whatever affects one affects the other because aircraft will be flying in and out. So, we have issued directive that no operator with Boeing 737 Max 8 or Max 9 should operate into and outside our airports and this is being carried out.”