This article is based on an official press release from Boeing and Ethiopian Airlines.

Ethiopian Airlines Expands Long-Haul Capabilities with New Boeing Order

On January 20, 2026, Boeing and Ethiopian Airlines announced a significant agreement for the purchase of nine 787-9 Dreamliners. In addition to the widebody acquisition, the carrier confirmed the finalization of an order for 11 737 MAX 8 jets, solidifying its commitment to modernizing both its long-haul and regional fleets.

According to the joint statement released by the manufacturer and the airline, this deal is a pivotal component of Ethiopian Airlines’ “Vision 2035” strategic roadmap. The plan aims to dramatically increase the carrier’s fleet size and route network over the next decade. By selecting the 787-9, the airline continues to operate the largest Dreamliner fleet in Africa, leveraging the aircraft’s efficiency to open new routes and increase frequency on existing long-haul services.

Deal Specifics and Fleet Modernization

The agreement encompasses two distinct aircraft types, addressing different segments of the airline’s operational needs. While the 787-9s represent new growth, the 737 MAX portion of the announcement serves as the formal completion of a commitment originally made at the Dubai Airshow in November 2025.

Expanding the Widebody Fleet

The core of this announcement is the firm order for nine Boeing 787-9 Dreamliners. The 787-9 is the “stretched” variant of the Dreamliner family, offering greater passenger capacity and range compared to the 787-8, which Ethiopian Airlines was the first to introduce to the African continent.

Industry data indicates that deliveries for these widebody jets are scheduled to commence in 2031 and continue through 2033. The acquisition aligns with the carrier’s sustainability goals, as the new jets are expected to reduce fuel use and emissions by approximately 25% compared to the older models they will replace.

“This order underscores our continued commitment to enhancing our fleet with modern, fuel-efficient aircraft, thereby further strengthening our customer service. We will continue to acquire more aircraft and adopt the latest technologies as part of our strategic vision to advance sustainable aviation.”

, Mesfin Tasew, Group CEO of Ethiopian Airlines

Finalizing the Narrowbody Commitment

Alongside the widebody order, the airline has finalized the purchase of 11 Boeing 737 MAX 8 jets. These aircraft are intended for short-to-medium haul routes and will complement the carrier’s existing narrowbody fleet. The 737 MAX 8 offers improved fuel efficiency and range over previous-generation 737s, supporting high-frequency regional connections across Africa and to the Middle East.

Strategic Context: Vision 2035

This procurement is directly tied to Ethiopian Airlines’ ambitious “Vision 2035” growth strategy. Publicly available details regarding the roadmap outline a target of expanding the fleet from approximately 168 aircraft to over 270 units by 2035. Furthermore, the airline aims to grow its network to more than 200 international destinations, with a focus on markets in Australia, Southeast Asia, and the Americas.

To support this expansion, the airline is also investing in infrastructure, including the development of a new $6 billion mega-airport in Bishoftu. Once completed, this facility is projected to handle up to 100 million passengers annually, necessitating a substantial increase in fleet capacity.

AirPro News Analysis

Maintaining a Dual-Manufacturer Strategy

While this order highlights a strong partnership with Boeing, it is important to note that Ethiopian Airlines maintains a diversified fleet strategy. The carrier operates a significant number of Airbus A350-900s and has orders for the larger A350-1000. By balancing orders between major manufacturers, the airline mitigates delivery risks and maintains leverage in negotiations.

However, the continued investment in the 737 MAX and 787 families signals confidence in Boeing’s products despite historical challenges. For Boeing, securing this order from Africa’s largest and most profitable carrier is a crucial endorsement as it seeks to stabilize its production backlog and reaffirm its market position in 2026.

Frequently Asked Questions

What is the estimated value of the deal?
While the exact purchase price is confidential and typically involves significant discounts, the deal is valued at approximately $3.9 billion at list prices. This estimate includes ~$2.6 billion for the nine 787-9s and ~$1.3 billion for the 11 737 MAX 8s.

When will the new aircraft be delivered?
Deliveries for the Boeing 787-9 Dreamliners are scheduled to begin in 2031 and run through 2033. The 737 MAX 8 deliveries are part of an ongoing narrowbody expansion.

Does this order replace existing aircraft?
The new aircraft are intended for both growth and replacement. They will help phase out older models, such as the Boeing 767, while also providing the additional capacity needed to meet the targets set in the Vision 2035 roadmap.

Sources

• Boeing Media Room

This article is based on an official press release from Qantas and supplementary industry data.

Qantas Unveils Major Fleet Renewal and Cabin Upgrades for Western Australia Operations

Qantas has announced a significant multi-million dollar investment aimed at revitalizing its Western Australian subsidiary, Network Aviation. According to an official statement released by the airline on January 18, 2026, the initiative focuses on retiring aging aircraft and enhancing the onboard experience for the state’s critical resources sector and regional communities.

The comprehensive plan involves the gradual retirement of the long-serving Fokker 100 fleet, which is set to be replaced by Embraer E190 jets. Additionally, the carrier confirmed a sweeping cabin refurbishment program for its existing Airbus A320 and A319 fleet, bringing high-speed Wi-Fi and modern seating to regional routes. QantasLink CEO Mark Dal Pra described the move as a reinforcement of the group’s long-term commitment to the West.

Fleet Renewal: Transitioning to the Embraer E190

A central pillar of the announcement is the modernization of Network Aviation’s fleet. For over three decades, the Fokker 100 (F100) has been a staple of regional aviation in Western Australia. However, Qantas has confirmed that these aircraft will now be phased out in favor of the Embraer E190.

According to the press release, the airline plans to acquire up to 14 E190 aircraft. The initial batch of three mid-life jets is expected to arrive by the end of 2026. The E190 is touted for its superior fuel efficiency and reliability compared to the outgoing Fokker fleet, offering a significant upgrade in operational performance for the high-frequency Fly-In, Fly-Out (FIFO) market.

“This multi-million-dollar investment reinforces our long-term commitment to serving the critical resources sector in Western Australia and connecting regional communities across the state.”

Strategic Sourcing and Industry Context

While QantasLink has previously utilized E190s through wet-lease agreements with Alliance Airlines, this new development marks a shift toward Network Aviation directly acquiring and operating the type. Supplementary industry reports suggest that the broader fleet renewal strategy may be supported by the redeployment of assets from within the wider aviation market, including the transfer of Airbus A320 aircraft following the reported cessation of Jetstar Asia’s operations in mid-2025.

Cabin Upgrades: Connectivity and Comfort

Beyond the new aircraft, Qantas is investing heavily in the passenger experience aboard its existing fleet. The upgrade program targets Network Aviation’s 28 Airbus A320 and A319 aircraft. The airline states that the first refurbished aircraft will enter service later in 2026, with the full program scheduled for completion by early 2027.

Key features of the upgrade include:

• High-Speed Wi-Fi: Passengers will be able to stream content via the Qantas Entertainment App, addressing a growing demand for connectivity on regional flights.
• New Seating: The A320 fleet will be retrofitted with all-new seats designed for greater comfort.
• In-Seat Power: The new cabins will feature USB-A and USB-C charging ports, along with holders for portable devices.

“Not only will it significantly enhance the travel experience for our customers, it will also help us improve reliability and efficiency across our WA network.”

AirPro News Analysis

This investment underscores the strategic importance of Perth as a “Western Hub” for the Qantas Group. By upgrading the hard product on these routes, Qantas is directly addressing the competitive demands of the resources sector. FIFO contracts are lucrative and demand high reliability; aging aircraft like the F100 can become liability in terms of maintenance downtime.

The shift to the E190 also aligns Network Aviation more closely with broader regional trends. The E190 offers a sweet spot in capacity, larger than a turboprop but more economical on thinner routes than a 737. Furthermore, the introduction of streaming Wi-Fi on the A320s brings the regional product in line with mainline domestic standards, a necessary move as competitors continue to enhance their own regional offerings.

Frequently Asked Questions

When will the new Embraer E190s start flying?
The first three E190s are expected to arrive and enter service by the end of 2026.

Which aircraft are being retired?
The Fokker 100 (F100) fleet is being gradually retired after more than 30 years of service.

Will there be Wi-Fi on regional WA flights?
Yes. The Airbus A320 and A319 fleet will be upgraded with high-speed Wi-Fi, with the rollout expected to be complete by early 2027.

Sources

• Qantas Newsroom

This article is based on an official press release from AirAsia Newsroom.

AirAsia X Completes Acquisition of Capital A Aviation Assets, Unifying Operations

On January 19, 2026, AirAsia X Berhad (AAX) officially completed the acquisitions of Capital A Berhad’s aviation businesses, specifically AirAsia Berhad (AAB) and AirAsia Aviation Group Limited (AAAGL). According to the official announcement from the AirAsia Newsroom, this transaction marks the conclusion of a comprehensive six-year restructuring plan designed to consolidate all AirAsia-branded Airlines under a single listed entity, now referred to as the AirAsia Group.

The completion of this deal allows Capital A to exit the aviation sector entirely, shifting its focus to its non-aviation digital and logistics portfolio. Simultaneously, the move is intended to aid Capital A in exiting its Practice Note 17 (PN17) financially distressed status. For the newly consolidated AirAsia Group, the merger unifies long-haul and short-haul operations under one management structure, aiming to streamline network planning and reduce operational costs.

Transaction Structure and Financial Details

The acquisition was executed through a combination of share issuance and debt assumption, effectively transferring the aviation assets from Capital A to AAX. The financial terms disclosed in the press release outline the scale of the consolidation.

Share Issuance and Debt Assumption

As part of the agreement, AAX issued approximately 2.31 billion new ordinary shares to Capital A and its entitled shareholders. In addition to the equity transfer, AAX assumed RM3.8 billion in debt that Capital A previously owed to AirAsia Berhad. This restructuring cleanses Capital A’s balance sheet while capitalizing the new aviation group for future operations.

Private Placement and Listing

Concurrently with the acquisition, AAX conducted a private placement to independent third-party investors. The airline issued 606 million placement shares, raising gross proceeds of RM1 billion. According to the announcement, the new consideration shares and placement shares were listed and quoted on the Main Market of Bursa Malaysia on January 19, 2026.

Strategic Rationale: “One Airline, One Brand”

The primary driver behind this consolidation is the “One Airline, One Brand” strategy. By merging the short-haul capabilities of AirAsia Berhad and the regional affiliates under AAAGL with the long-haul operations of AirAsia X, the group aims to optimize fleet utilization and connectivity.

Capital A CEO Tony Fernandes described the completion of the deal as a pivotal moment for the organization. In the press release, Fernandes emphasized the resilience required to reach this stage.

“This is one of the most emotional moments of my career… We chose to rebuild the right way, and today, AirAsia emerges as a consolidated group with global ambitions.”

With the aviation assets divested, Capital A will pivot to becoming a dedicated non-aviation company. Its focus will now center on its digital ecosystem, which includes Teleport (logistics and cargo), AirAsia MOVE (travel and lifestyle app), ADE (Asia Digital Engineering), and Santan (in-flight catering and food retail).

Executive Commentary and Future Outlook

The leadership of the newly formed AirAsia Group has expressed confidence that the merger will unlock significant synergies. Datuk Fam Lee Ee, Chairman of AirAsia X, stated that the integration creates a “stronger, more streamlined aviation platform” positioned for sustainable growth. He noted that the unified entity is better equipped to reinforce its leadership in the ASEAN region.

AirPro News Analysis

The completion of this merger represents a significant shift in the Asia-Pacific aviation landscape. By combining balance sheets and fleets, the new AirAsia Group is likely to pursue a more aggressive expansion strategy. The mention of a “low-cost network carrier” model suggests the group intends to compete more directly with full-service carriers by offering seamless connectivity between ASEAN and global destinations, potentially utilizing new hubs in regions like the Middle-East.

Furthermore, the RM1 billion raised through private placement provides immediate liquidity to support fleet optimization and route expansion. As the group finalizes new Orders, we expect to see a push toward modernizing the fleet to lower seat-mile costs, a critical factor in maintaining the low-cost model while flying longer sectors.

Sources

• AirAsia Newsroom