Ethiopian Airlines has reached a financing agreement with Citigroup for the acquisition of five new Boeing aircraft: three 737-8s and two 777Fs. The total amount of the transaction is $450 million.
Citi’s partnership with Ethiopian Airlines spans over 45 years. This loan marks Citi’s largest aircraft financing in Ethiopia in the last decade. It not only supports the bank’s strategic initiative to increase its presence in the region but also aligns with the airline’s ambitious growth plan.
Recently, at the Dubai Airshow 2023, Ethiopian finalized an agreement with Boeing to add up to 67 aircraft, including 11 Dreamliners and 20 MAX, with an option for an additional 36 aircraft. This deal represents the largest-ever purchase of Boeing aircraft by an African airline.
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The five aircraft will expand Ethiopian Airlines’ fleet to a total of 150. Their delivery is scheduled before the end of the year. This expansion aims to strengthen Ethiopian Cargo’s position as the largest cargo operator in Africa. The company plans to grow its fleet to over 270 aircraft by 2035.
Mesfin Tasew, CEO of the Ethiopian Group, emphasized the strategic importance of fleet expansion for their growth plan. On the other hand, Akin Dawodu, Head of Citi for Sub-Saharan Africa, highlighted the partnership with the airline and the collaborative effort to secure financing for the new aircraft.
Ethiopian operates flights to 135 international destinations, including 63 African cities. Additionally, it owns 17 cargo aircraft and plays a crucial role in continental and transcontinental connectivity. It is noteworthy that forecasts indicate the African aviation market will require 1025 new aircraft in the next two decades.
