Weeks after Nigerian airline operator, Air Peace, maintained that it will not cancel its orders for Boeing 737-Max 8, Kenya’s national carrier, Kenya Airways, has also declared its intention to stick with the Boeing brand.
Kenya Airways is planning to order up to ten of the planes at an estimated total ost of $1.2 billion (Sh120 billion). According to the company’s Chairman, Michael Joseph, Kenyan Airways is going ahead with the decision to acquire the Boeing 737-Max 8 models despite global condemnation of the plane brand after a series of deadly crashes.
Boeing is losing popularity – From being one of the most sought after aircraft in the world, the Boeing 737-Max 8 has become unpopular globally no thanks to two deadly crashes that involved the jet model.
As we reported earlier today, the crashes involving Ethiopian Airline and Indonesia’s Lion Air flight, were all caused by Boeing‘s hasty manufacturing of the Boeing 737 Max 8 model.
Many stakeholders are boycotting the jet maker – Recall that the two deadly crashes occurred in the space of five months. This prompted many countries who already have the Boeing 737-Max 8 in their fleet to ground the planes, even Indonesian airline, Garuda Indonesia, cancelled its order of the model.
Kenya Airways has its reasons
Kenya Airways is sticking to the Boeing brand in a bid to reduce operational cost. The government-run airline said it is cost-effective to maintain a similar brand from the same manufacturer. In other words, acquiring air planes from a new manufacturer like Airbus would mean extra costs for pilot training and maintenance of the planes.
“The only option that we have planned for is the Boeing 737-800 Max because this will make it easier for us to conduct training and maintenance of the aircraft.
“We hope that between now and the time when we are ready to acquire the new fleet, Boeing will have solved the current problem.”
Kenya Airways currently has a fleet of 40 planes – The fleet is a mixture of Boeing jets and the Brazilian-made Embraer 190. The aircraft comprises 20 that the national carrier fully owns and another 20 leased from other companies.
Kenya Airways taking the same route with Air Peace
Recall that Air Peace had stated that it has no intention to cancel the order it made last year, despite backlash against the company.
Air Peace and the American aircraft manufacturer, had on September 13, 2018, signed an agreement for the delivery of 10 brand new B737 MAX 800 aircraft. And following safety concerns originating from the recent crash, a spokesman for the company, Chris Iwarah, said it is rather premature to start considering cancelling the orders.
Chairman support stand: Iwarah’s statement was supported by the Airline’s Chairman, Allen Onyema, who said Air Peace ordered for the embattled aircraft long before the technical issue arise because the plane was the toast of the global aviation industry, and it’s only normal for the company to align with such development.
The Boeing 737-Max 8 plane has been credited for fuel efficiency and has been one of Boeing’s best-selling jets. More than 370 aircraft was delivered since 2017, with about 5,000 more placed orders.
US government to ban WeChat and TikTok from app stores
Chinese-owned social media apps are facing a ban in the US over national security concerns.
The United States government says it will ban the services of Chinese tech giants, WeChat and TikTok, from online mobile application stores in the U.S. It also plans to prohibit any funds transfer/payment services through the WeChat mobile application.
This was announced by the U.S Commerce Secretary, Wilbur Ross, in a statement on Friday, following President Donald Trump’s Executive Orders (E.O.) 13942 and E.O. 13943, on the 6th of August.
“In response to President Trump’s Executive Orders signed August 6, 2020, the Department of Commerce (Commerce) today announced prohibitions on transactions relating to mobile applications (apps) WeChat and TikTok to safeguard the national security of the United States,” said Wilbur Ross.
He added that the Chinese Communist Party (CCP), has proven it has the means and the motive to use Chinese tech apps, to threaten America’s national security foreign policy, and the economy of the U.S.
He said the following transactions will be prohibited from September 20th for WeChat and November 12th for TikTok
- Any provision of service to distribute or maintain the WeChat or TikTok mobile applications, constituent code, or application updates, through an online mobile application store in the U.S.
- Any provision of services through the WeChat mobile application, for the purpose of transferring funds or processing payments within the U.S.
Mr. Ross said that with the Executive Order, the US government has taken a ‘significant action’ in fighting China’s malicious personal data breach on American citizens, and also promote democratic rule-based norms, and aggressive enforcement of U.S. laws and regulations.
The U.S government announced that further prohibitive measures, relating to both companies may be announced in the future.
“Should the U.S. Government determine that WeChat’s or TikTok’s illicit behavior is being replicated by another app somehow outside the scope of these executive orders, the President has the authority to consider whether additional orders may be appropriate to address such activities.”
President Trump has given until November 12, to resolve the TikTok security concerns of the US. He added that the prohibitions may be lifted, if they are addressed.
WTO: Okonjo-Iweala still in contention as 3 candidates depart race for DG
Okonjo-Iweala and the remaining 4 other candidates hope to succeed the current DG, Mr Roberto Azevêdo.
Three candidates running for the post of the Director-General of the World Trade Organisation have fallen out of the race after failing to secure enough votes in the first rounds of voting, leaving only 5 candidates left, including Nigeria’s Ngozi Okonjo-Iweala.
This was disclosed by Bloomberg on Thursday, before the meeting on Friday. The Candidates that are out of the race are Jesus Seade (Mexico), Tudor Ulianovschi (Moldova), and Hamid Mamdouh (Egypt). The candidates were not able to secure the support needed for the first round of 3 rounds of voting.
Dr. Ngozi Okonjo Iweal joins 4 other candidates for the next round of voting. The candidates are; Liam Fox (UK), Amina Chawahir Mohamed Jibril (Kenya), Yoo Myung-hee ( South Korea), and Mohammad Maziad Al-Tuwaijri ( Saudi Arabia).
Ngozi Okonjo-Iweala disclosed last month some of her plans for the Organization if made President. Nairametrics reported she noted that part of her vision is to build a trade institution where there is greater trust among its members. She also stressed that the WTO, at this critical time, is needed to ensure that trade and global markets remain open.
On healing the rift between the US and China, Okonjo-Iweala admitted that it is going to be challenging and not be easy. She said:
“Well, this is not going to be easy, if it was easy, it could have been done a long time since. So it would be very challenging but it is not an impossible job. It is very clear that both the US and China have been helped and benefitted from the multilateral trading system in the past. Hundreds of millions have been lifted out of poverty. They have experienced shared prosperity in the economies and their countries.’’
She added she would listen to both countries to find out what really are the issues causing distrust among them. She said that she will not want to be involved in the larger political problems, but will rather separate the trade issues and focus on them and build this trust.
“You need to begin to find areas where there can be confidence-building and trade. Building trust is not talking about it, you have to have areas where both can work together and agree and we have a golden opportunity in the fisheries subsidies negotiations that are going on now because the US is a party to it, China is a party, the EU, all other members,’’ she said.
Okonjo-Iweala and the 4 other candidates will present themselves to the members of the global trade body for the later stages of voting in the hopes of securing the highest number of votes to succeed the current DG, Mr. Roberto Azevêdo.
WTO: Selection of new DG might be tied to the upcoming US presidential election
The eventual winner could be dependent on the outcome of the November 3 US Presidential elections.
The WTO’s effort to select a new leader entered a new stage this week, as the ambassadors from 164-member countries met for private consultations, on who they would support.
Six former WTO officials and trade experts revealed that the politicking in Geneva, Switzerland – WTO headquarters, could be a wild goose chase, as the decisive developments that will shape the future of the embattled global trade organization, are unfolding miles away in Washington, ahead of the November 3 presidential elections.
Although, the support of a particular candidate by the United States is critical; 4 trade experts, including former WTO employees, believe that the Trump administration is unlikely to breathe life into a multilateral body that he once threatened to leave. Donald Trump launched a trade war with China, repeatedly imposed tariffs on US allies, and destroyed WTO’s ability to intervene in disputes, by blocking the appointment of members to its Appellate Body.
David Tinline, a former adviser to Azevedo said, “I find it hard to imagine that the Trump administration would shift tack and do something very positive for the system.’’
The US Trade Representative (USTR), Robert Lighthizer, had in June told US lawmakers that, “the WTO needed a reform-driven leader and that he would veto any candidate who showed any whiff of anti-Americanism.”
The former WTO officials and trade experts said that the US-China economic conflict is a further divisive factor, as both countries will likely reject any candidate backed by the other.
The 8 candidates in contention for the top job, are expected to be trimmed down to 5 after the first confessional meetings on September 16. This will be further cut down to 2, and the final decision designed to be taken by convention before the November 7 deadline – just four days after the US elections.
Aside from the two influential African women vying for the role, Liam Fox, Britain’s former Trade Secretary, is a force to reckon with. If a favorite candidate does not emerge, some WTO members might prefer to wait until after the US election in case Joe Biden wins the US presidential election; especially, as Voting, seen as a last resort, has never occurred in WTO’s history.
A former member of WTO, Peter Van Den Bossche said, “They could play a waiting game, but that would push the decision until at least February or March 2021.”
Even though WTO is member-led, a strong leader who can facilitate decision making, and galvanize its 164 member nations, is crucial to reviving a severely embattled global organization.