Ethiopian Airlines And Boeing Form Venture To Manufacture Parts - Simple Flying

• Photo: Vincenzo Pace | Simple Flying

  Ethiopian Airlines

  IATA/ICAO Code:

  ET/ETH

  Airline Type:

  Full Service Carrier

  Hub(s):

  Addis Ababa Bole International Airport

  Year Founded:

  1945

  Alliance:

  Star Alliance

  CEO:

  Mesfin Tasew Bekele

  Country:

  Ethiopia

Summary

• Ethiopian Airlines will manufacture aerospace parts through a partnership with Boeing, addressing global supply bottlenecks and creating job opportunities in Ethiopia.
• The Ethiopian Airlines Group is experiencing continued growth and is planning a new airport to accommodate future demand, with an estimated cost of $4 billion.
• The joint venture with Boeing and the manufacturing of aircraft parts will contribute to the company's post-pandemic growth strategy, focusing on human resource development, fleet modernization, infrastructure development, and technology investment.

Ethiopian Airlines will manufacture aircraft parts through a venture partnership with Boeing, the government’s investment agency said on Friday. The carrier, the Ethiopian Investment Commission and the Industrial Parks Development Corporation of Ethiopia signed a Memorandum of Understanding to build a shed near Killinto Industrial Park for the manufacturing of aerospace parts.

Building aerospace parts

Ethiopian Airlines built a manufacturing plan in 2009. As part of this project and today’s announced Memorandum of Understanding, Ethiopian Group will manufacture aerospace parts including aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and other parts. This was announced by the Ethiopian Investment Commission on X.

Additionally, this joint venture will include Boeing and a planned capital of $15 million which will create employment opportunities for over 300 Ethiopians.

Reuters reported other African carriers like Kenya Airways have said they are suffering a shortage of parts, caused by the Ukraine war crisis. This crisis cut the supply of Russian titanium, which is an important component of global aviation.

Boeing has not released an official statement on the partnership. There is no immediate information on when the production will begin.

Bottlenecks in the industry

The Ethiopian Airlines Group, owner of the carrier and Addis Ababa’s Bole International Airport, expects continued growth for the coming years. The company’s post-pandemic four-pillar growth strategy is focusing on human resource development, modernizing the fleet, developing the infrastructure, and investing in technology.

Photo: Philip Pilosian/Shutterstock.

The MoU with Boeing to manufacture aircraft parts will address part of these concerns. Globally there has been bottlenecks in the availability of parts and spares. These bottlenecks include trouble accessing raw materials, staffing, transport, and more, with suppliers having to introduce mitigation actions and cooperating with other companies to address the period of uncertainty volatility and complexity.

Ethiopian Airlines Group investments

Experiencing double-digit growth over the past decade, Ethiopian Airlines projects a similar growth trajectory in the years ahead. To address this growth, the group is planning a new airport capable of serving 100 million passengers annually.

This new airport will be located in Bishoftu, 25 miles outside of Addis Ababa and will be linked to the city through a planned passenger rail system.

Ethiopian Airlines Group expects the construction of the airport to have an estimated cost of $4 billion. It will be done in three phases. The first phase, as explained by the US’ International Trade Administration, expected to be completed by 2028, will include two terminals. French engineering and design company Groupe ADP developed the master plan and site selection.

Envisioned to accommodate a passenger capacity five times greater than the current volume, and encompassing substantial investments, this new airport presents an immense opening for businesses across a diverse spectrum of industries. These opportunities span from project design and management to the provision of heavy machinery, passenger rail services, aviation ground equipment, baggage handling, and cargo/passenger security systems. Additionally, a multitude of supplementary air passenger services, including franchises and retail ventures, are also part of this growing proyect.

What do you think about Ethiopian Airlines plans to manufacture aircraft parts? Let us know in the comments below.

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