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Ethiopian Airlines Secures $450 Million Loan For 5 Boeing Jets

Ethiopian Airlines plans to take delivery of five aircraft in December 2023, financed by Citi’s $450 million loan.

Ethiopian Airlines has secured a $450 million loan to purchase five Boeing aircraft, namely three 737 MAX 8 and two 777F jets. According to the airline, the loan was secured against the value of the five aircraft, arranged exclusively by Citi’s Corporate Banking and Export Agency and Finance teams.

December deliveries

The carrier noted that the loan was the bank’s largest aircraft financing in Ethiopia in the last decade, supporting Citi’s regional ambitions and Ethiopian Airlines’ growth plans. The five aircraft will grow the carrier’s fleet to 140 units, with Boeing finalizing the delivery process of the quintet in the United States (US) in December 2023.

According to ch-aviation data, Boeing has already delivered one 737 MAX 8, registered as ET-BAL. Flightradar24 tracking activity showed that the aircraft left Seattle Paine Field International Airport (PAE) on December 15, arriving at Addis Ababa Bole Airport (ADD) following a stop at Dublin Airport (DUB) on December 17. Since then, it has completed six commercial flights, including landing at Chennai International Airport (MAA), India.

Ch-aviation also showed that the airline has 135 aircraft in its fleet, including the recently delivered 737 MAX 8. Meanwhile, Aviation Flights Group has spotted another Ethiopian Airlines 737 MAX 8, registered as ET-BAN, at Renton Municipal Airport (RNT) with full colors on December 18. The aircraft’s radar was activated several times throughout the month, per ADS-B Exchange records.

The Ethiopian Airlines Fleet In 2023

Mesfin Tasew, the Chief Executive Officer (CEO) of Ethiopian Airlines Group, explained that the financing provided by Citi will allow the airline to expand its fleet size, one of the group’s strategic growth pillars. Tasew promised that the airline “will continue expanding and modernizing our fleet size so as to grow our business and reach new markets.”

Akin Dawodu, Sub Saharan Africa Head at Citi, added that the two companies have been partners for decades and that the latest financing was the result of a lot of work, thanking “Citi’s strong relationships and connectivity both within the country and across our global network that we have been able to make it happen.”

Ethiopian Airlines backlog

The five aircraft are part of the airline’s significant backlog, with Ethiopian Airlines waiting for aircraft deliveries from both Airbus and Boeing. According to the latter’s Orders & Deliveries data as of November 30, the African airline has 17 737 MAX and four 777F aircraft on order, excluding the latest 737 MAX 8 delivery. The manufacturers’ data does not include deals airlines have made with aircraft lessors, such as EgyptAir’s order for 18 737 MAX aircraft, whose delivery slots were secured by Air Lease Corporation (ALC). Nevertheless, Airbus’ data shows that Ethiopian Airlines has four A350-1000s on order as of November 30.

During the Dubai Airshow 2023, Ethiopian Airlines made two orders, purchasing aircraft from Airbus and Boeing. Firstly, the airline purchased a total of 67 Boeing aircraft, split between 42 737 MAX (21 options) and 25 787-9s (15 options), following up its order with a purchase of 11 Airbus A350-900. However, the Airbus order was a Memorandum of Understanding (MoU), indicating that the details have not been finalized yet, providing a hint of why the order had not shown up on the European manufacturer’s Orders & Deliveries data.

Ethiopian AirlinesIATA/ICAO
Code:ET/ETHAirline
Type:Full Service
CarrierHub(s):Addis Ababa Bole International Airport
Year Founded:1945Alliance:Star Alliance
CEO:Mesfin Tasew Bekele
Country:Ethiopia