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Boeing Delays Force Ethiopian Airlines to Lease Aircraft Amid Expansion Plans

Boeing, based in Arlington, Virginia, US, has faced ongoing issues like parts shortages and workforce turnover since the COVID-19 pandemic. These challenges have caused delays for Ethiopian Airlines and other airlines globally, with several carriers warning that late deliveries are straining their operations and finances.
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Ethiopian Airlines, Africa's largest carrier, has been forced to lease aircraft to maintain its ambitious expansion plans due to significant delays in deliveries from Boeing Co. The Addis Ababa-based airline has been waiting since April for the arrival of new 737 Max jetliners and 777 freighters, but Boeing has yet to provide a revised schedule for these deliveries.
Ethiopian Airlines Chief Executive Officer Mesfin Tasew Bekele expressed concern over the delays in a recent interview with a Western media outlet.

"We are waiting to hear from them, and definitely, late delivery of airplanes will affect our growth plan," Tasew was quoted as saying. "In parallel with that, we didn’t wait for Boeing to deliver the ordered airplanes, and now we are leasing airplanes," he added, highlighting the airline's proactive steps to mitigate the impact of the delays.

Despite the delays, Ethiopian Airlines has maintained its relationship with Boeing, even after a tragic incident in March 2019 when one of its 737 Max aircraft crashed, resulting in the loss of all onboard. In 2023, the airline announced orders for 11 Boeing 787 Dreamliners and 20 737 Max airplanes as part of a fleet modernization effort. The airline is scheduled to receive 16 new aircraft in its current fiscal year, including four A350-1000s from Airbus, with deliveries expected between October 2023 and March 2024.

"The next promised delivery dates that we received from Boeing for the 777 freighter are for the quarter of September," Tasew reportedly noted, but he added that Boeing has not yet provided a schedule or revised timeline for the delivery of the 737 Max airplanes.

Interestingly, Boeing is set to open an office in Addis Ababa in October, aiming to strengthen its cooperation with Ethiopian Airlines, including potential joint production of aircraft components, according to media reports.
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Ethiopian Airlines is also looking to expand its footprint across Africa, where it already has partnerships with operators in Togo, Malawi, and Zambia. Tasew revealed that several African governments have approached the airline to form new partnerships, either by establishing new airlines or managing existing ones.
"A few African governments have requested us to go there to form airlines in partnership," Tasew said, as cited by the media. "Others have requested us to manage their own airlines without equity partnership, which we are considering as well." He added that Ethiopian Airlines expects to establish some form of partnership with at least two African nations within the next 12 months.
However, not all expansion efforts have been successful. Plans to establish a carrier in Nigeria in collaboration with institutional investors and the Nigerian government have fallen through.
As Ethiopian Airlines navigates these challenges and opportunities, it remains committed to its growth strategy and its role as a leading airline on the African continent.