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Old August 8th, 2009, 09:06 AM   #1
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Ethiopian Airlines' $4.2 Bln Order Goes To Airbus, Boeing (17 new aircraft)

Ethiopia orders 17 new Boeing and Airbus

By Tesfa-alem Tekle

July 30, 2009 (ADDIS ABABA) — Ethiopian Airlines announced plans to purchase 17 new aircrafts from the Boeing and Airbus companies with a $4.2 billion deal, marking the flag carrier, the first African airline to order and operate the ultra long range 777-200LR model.

The airline in a statement on Tuesday said that it has placed an order for five B777-200LR Boeing aircrafts from the Boeing Company and twelve A350-900s from Airbus.

Ethiopia’s latest announcement for the purchase of five Boeing aircrafts comes after the chief executive officer of Ethiopian Airlines; Girma Wake signed an agreement with Boeing’s Sales Director for the Middle East and Africa, Skip H. Thompson.

Last week, the flag carrier has also signed a memorandum of understanding with Airbus to acquire 12 A350-900s aircrafts. The order for the five B777-200LRs will cost the Ethiopian airlines US$1.3 billion and US$2.9 billion for the twelve A350-900s.

The B777-200LRs will be delivered begin in October, 2010 while the A 350 -900s will be received in 2017.

"The Boeing 777 will be integral as we bring our business to the next level" Girma Wake said, adding this order reinforces the deep ties between our two companies.

"The new purchase of aircraft from Boeing and Airbus is made in line with Ethiopia’s fast growth strategy in which it is predicated that the fleet size would significantly increase in the next ten to fifteen years" Girma said.

The order is one of the largest-ever by an African airline, and comes amid a broad slump in business for the world’s top airline companies.

Ethiopian currently operates an all-Boeing jet fleet of 29 aircraft and was the regional launch customer for the 787. It has been forced to lease alternatives and delay expansion as the 787 schedule has slipped.

The airline has developed a strong regional network to position Addis Ababa as a base to feed long-haul traffic into Africa, competing with fast-growing Middle East carriers such as Emirates Airline.

Net profits rose 9% to 515 million birr in the six months to December 31, the latest data available, with operating revenue up 55% at 6.7 billion birr. It carried 1.5 million passengers during the period, with freight more than doubling to 55,000 tons. In the year to June 30, 2008 it made a net profit of 507 million birr.

Ethiopian airlines is widely regarded as one of the best-run airlines in Africa. It serves over 50 destinations worldwide and over 35 destinations within Ethiopia.

(ST)
http://online.wsj.com/article/BT-CO-...28-721469.html
http://www.sudantribune.com/spip.php?article31980
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Old August 8th, 2009, 11:16 AM   #2
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huh? Ethiopia has billions to buy planes in these difficult time, but with abject poverty?
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Old August 8th, 2009, 12:37 PM   #3
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one word: corruption.
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Old August 8th, 2009, 01:05 PM   #4
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Quote:
Originally Posted by briker View Post
huh? Ethiopia has billions to buy planes in these difficult time, but with abject poverty?
Quote:
Originally Posted by martinx View Post
one word: corruption.
u guys why don't u see the positive part ! i think the next post will makes fill ashamed of ur comment , and will answer why the new investment is needed !
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Old August 8th, 2009, 01:08 PM   #5
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Ethiopian Airlines 08/09 net profit leaps 165 pct


* Net profits rise 165.3 percent

* Operating revenue up 32.8 percent

* Cargo up 38.4 percent, passengers up 12.3 percent

By Tsegaye Tadesse

ADDIS ABABA, Aug 7 (Reuters) - Ethiopian Airlines [ETHA.UL] said on Friday that its full year net profit more than doubled to 1.3 billion birr ($118.6 million) from the previous year due to an aggressive marketing campaign and major cost cuts.

The African carrier's operating revenue for the year to June rose 32.8 percent to 12.2 billion birr, Chief Executive Girma Wake said. Passenger numbers rose 12.3 percent to 2.8 million, while cargo increased 38.4 percent compared with the previous year.

"Our profits increased due to an aggressive marketing campaign and a major cost-cutting effort," a spokeswoman for the airline told Reuters. "We introduced seven new routes which also contributed to our growth, including routes to Saudi Arabia and Nigeria."

In 2007/08, it had made a net profit of 507 million birr.

Wake told a news conference that said Ethiopian Airlines had placed orders for five 777-200 LR (long range) planes made by Boeing (BA.N), twelve 350-900s from EADS's (EAD.PA) Airbus unit and eight Q400 turboprops from Bombardier, at a total cost of $4.5 billion.

He said the airline had paid down payments for all the aircraft on order and planned to take out loans from European and the U.S. banks to pay for the balance.

Boeing is due to deliver the planes by 2010, while the aircraft are expected to be received by 2017, Girma said. ($1=11.340 Ethiopian Birr) (Additional reporting by Barry Malone; editing by Daniel Wallis and Karen Foster)
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Old August 8th, 2009, 01:26 PM   #6
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Very good news from Ethiopian Airlines, it really is one of the fastest growing airlines in Africa. They have huge development plans and they will quickly be one of the leading airlines in africa, well done
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Old August 8th, 2009, 03:54 PM   #7
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Quote:
Originally Posted by briker View Post
huh? Ethiopia has billions to buy planes in these difficult time, but with abject poverty?
exactly,
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Old August 8th, 2009, 08:27 PM   #8
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Ethiopia is measuring more than 1 million square kilometers and counting more than 80 million people, thus it is a country where air links are vital to the national infrastructure. In addition, Ethiopian Airlines is one of Africa’s most successful airlines and is providing vital passenger and cargo services for the whole region.

Sounds like a great investment to me!

Of all places, I am really surprised that people here are playing the poverty card and belittle the fact that a country is trying to move on.
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Old August 8th, 2009, 10:20 PM   #9
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Quote:
Originally Posted by hereI'm View Post
Ethiopia orders 17 new Boeing and Airbus

By Tesfa-alem Tekle

July 30, 2009 (ADDIS ABABA) — Ethiopian Airlines announced plans to purchase 17 new aircrafts from the Boeing and Airbus companies with a $4.2 billion deal, marking the flag carrier, the first African airline to order and operate the ultra long range 777-200LR model.

The airline in a statement on Tuesday said that it has placed an order for five B777-200LR Boeing aircrafts from the Boeing Company and twelve A350-900s from Airbus.

Ethiopia’s latest announcement for the purchase of five Boeing aircrafts comes after the chief executive officer of Ethiopian Airlines; Girma Wake signed an agreement with Boeing’s Sales Director for the Middle East and Africa, Skip H. Thompson.

Last week, the flag carrier has also signed a memorandum of understanding with Airbus to acquire 12 A350-900s aircrafts. The order for the five B777-200LRs will cost the Ethiopian airlines US$1.3 billion and US$2.9 billion for the twelve A350-900s.

The B777-200LRs will be delivered begin in October, 2010 while the A 350 -900s will be received in 2017.

"The Boeing 777 will be integral as we bring our business to the next level" Girma Wake said, adding this order reinforces the deep ties between our two companies.

"The new purchase of aircraft from Boeing and Airbus is made in line with Ethiopia’s fast growth strategy in which it is predicated that the fleet size would significantly increase in the next ten to fifteen years" Girma said.

The order is one of the largest-ever by an African airline, and comes amid a broad slump in business for the world’s top airline companies.

Ethiopian currently operates an all-Boeing jet fleet of 29 aircraft and was the regional launch customer for the 787. It has been forced to lease alternatives and delay expansion as the 787 schedule has slipped.

The airline has developed a strong regional network to position Addis Ababa as a base to feed long-haul traffic into Africa, competing with fast-growing Middle East carriers such as Emirates Airline.

Net profits rose 9% to 515 million birr in the six months to December 31, the latest data available, with operating revenue up 55% at 6.7 billion birr. It carried 1.5 million passengers during the period, with freight more than doubling to 55,000 tons. In the year to June 30, 2008 it made a net profit of 507 million birr.

Ethiopian airlines is widely regarded as one of the best-run airlines in Africa. It serves over 50 destinations worldwide and over 35 destinations within Ethiopia.

(ST)
http://online.wsj.com/article/BT-CO-...28-721469.html
http://www.sudantribune.com/spip.php?article31980

I think the info is not very accurate-For Your information, Kenya Airways has been operating a number of the Boeing 777 for a few years Now (it was the first Airline in Africa to Operate 777 familly of Jets and will be buying more) Although it is a slightly different variant with a small difference in range....KQ's 777 are Extended Range (Boeing 777 200-ER)...

Overall..its good seeing progress in Africa by Africans.
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Old August 8th, 2009, 10:29 PM   #10
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Quote:
Originally Posted by briker View Post
huh? Ethiopia has billions to buy planes in these difficult time, but with abject poverty?
Well...its the priority now..business first.

1777777777777777777777777777777777777777777

Not 7
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Old August 9th, 2009, 08:21 AM   #11
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Quote:
Originally Posted by mkenya View Post
I think the info is not very accurate-For Your information, Kenya Airways has been operating a number of the Boeing 777 for a few years Now (it was the first Airline in Africa to Operate 777 familly of Jets and will be buying more) Although it is a slightly different variant with a small difference in range....KQ's 777 are Extended Range (Boeing 777 200-ER)...

Overall..its good seeing progress in Africa by Africans.
u r misunderstanding , Kenyan Airways use Boeing 777-200ER ok but Ethiopian Airline order Boeing 777-200LR,that's y they call it the first airline in Africa that use Boeing 777-200LR not Boeing 777 in general .
u can see the difference between the two version of 777-200ER and 777-200LR.
here is the link http://en.wikipedia.org/wiki/Boeing_777
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Old August 10th, 2009, 04:50 AM   #12
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The Ethiopian Airlines plane order is good news. Seattle & Addis have strong ties thru the local Ethiopian community. Over the years, quite a few Ethiopians & other East Africans have worked on Boeing's assembly lines, helping to produce these jetliners over the years.

Soccer to reunite Ethiopians who fled strife in homeland - 20,000 from North America to converge here
Seattle Times, The (WA) - Sunday, June 27, 2004
Author: Doug Merlino: Seattle Times staff reporter

Soccer has done much for Teshome Beyene. It helped him escape Ethiopia in 1987, when, as a member of the national youth team, he defected from the communist country after a match in Egypt.

The game also has helped him fit in here in Seattle , where he was a star at Shoreline Community College and has been captain of the Seattle Dashen — a local amateur team made up almost entirely of Ethiopian immigrants — for most of the last 15 years.

And this weekend, the game will reunite him with old friends: Some 20,000 other Ethiopians from across North America are expected to converge on Seattle for a soccer and cultural blowout.

The party kicks off today in Qwest Field (formerly called Seahawks Stadium) with an opening ceremony at 9 p.m. Soccer games start earlier, at 11 a.m., and will last late into the night. Vendors will be selling all things Ethiopian .

Around 600 soccer players from 25 teams will take part, representing cities such as Washington, D.C., Houston and Toronto.

Beyond soccer, the 21st annual weeklong revelry — held in Seattle once before, in 1991 — is a major happening for the half-million or so Ethiopians now living in the United States.

"It's a huge mecca for Ethiopians in the diaspora," said Bisrat Desta, a local organizer of the tournament, which is put on by the Ethiopian Sports Federation in North America. "It's a place where you can find lost friends, people you grew up with and didn't even think were still alive."

For Beyene, one of an estimated 15,000 to 25,000 Ethiopians living in the Puget Sound area, the tournament offers a chance to catch up with — and compete against — the nine other players from his youth soccer team who defected with him and gained political asylum in the United States.

"Three of us came to Seattle , four went to Las Vegas, two to Chicago, and one to L.A.," said Beyene, 34, a photo technician. "Every year when we play we see each other."

Some of the Ethiopian visitors, who've booked about 500 rooms at the Doubletree Hotel Seattle Airport, will cheer on their soccer clubs, cruise on Elliott Bay, crowd into Ethiopian restaurants and party at nightclubs. The week wraps up on Saturday with an all-night bash for an expected 5,000 people in the exhibition center at Qwest Field.

The tournament, which will cost about $250,000 to put on, reflects the growing numbers and financial clout of Ethiopians in the Seattle area. Most local Ethiopians have arrived in the last 15 years, after the United States began granting visas in the late 1980s and early 1990s. Seattle welcomed the first immigrants, Desta said, and the word spread.

"Those that settled here attracted their friends and relatives," Desta said. "A lot of Ethiopians feel comfortable here."

Desta estimated that this week's visitors will bring $2 million to the local economy, with car rentals, hotel and entertainment expenses.

At Lalibela Ethiopian Restaurant on East Cherry Street, manager Genut Thilun said staff members are prepared for a bump in numbers.

"We're ready for a mass of people," said Thilun, who is expecting relatives from Washington, D.C., and Ohio.

Solomon Tadesse, Ethiopia's honorary consul general in Seattle , said Ethiopians have shown an entrepreneurial spirit. The immigrants have opened some 19 local restaurants, he said, and 400 to 500 are taxi drivers who own their own vehicles.

Tadesse said that during the tournament he will try to tap into the swelling pocketbooks of Ethiopians by hosting a panel at the Langston Hughes Performing Arts Center with ministers from Ethiopia and the Ethiopian ambassador to the United States, Kassahun Ayele .

"We're trying to take advantage of having so many Ethiopians in town, to talk about Ethiopians investing back in Ethiopia," Tadesse said, noting that business ties to the Seattle area include a recent Ethiopian Airlines purchase of 12 Boeing jets.

Tadesse said the mere existence of his job shows the importance of the Seattle area to Ethiopians : The only other honorary Ethiopian consulate in the country is in Houston, he said.

On Thursday, Seattle team Dashen — named for the tallest mountain in Ethiopia — had a final tune-up on the practice fields at Ingraham High. As players in bright red and yellow practice jerseys hustled after the ball, Beyene — a short, wiry man with a shock of black hair sticking straight up off his head — yelled instructions in Amharic and English.

"We're under a lot of pressure to do well," said Beyene, adding that many Ethiopians from around the country follow the Dashen.

Will the Dashen please their fans this week at the tournament? Beyene — known to Ethiopian soccer fans as "Aspirin" for the soothing quality of his play — responded with a smile.

"You'll see on Sunday."
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Old August 10th, 2009, 03:19 PM   #13
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Quote:
Originally Posted by martinx View Post
one word: corruption.
If you don't know what you're talking about (and you don't) then be quiet.

Ethiopian Airlines has been one of Africa's best companies for decades. Even under the communist Derg, Ethiopian Airlines was noted for its technical, financial, and organizational skill.

Aircraft from Africa and the Middle East go to Addis Ababa for servicing; and there is a reason why other African airlines send their people to Addis for training. Because the Ethiopians are good.

As the articles indicate, Ethiopian is profitable and is growing well. Their current force of 767s will need replacing, and spending $4 billion over 10+ years is quite reasonable.

Ethiopian Airlines is possibly the best run state owned corporation in Africa, and you try to accuse them of corruption. If that's the first thing that enters your mind then YOU have a problem.
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Old August 10th, 2009, 03:22 PM   #14
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Quote:
Originally Posted by briker View Post
huh? Ethiopia has billions to buy planes in these difficult time, but with abject poverty?
These planes are being bough by Ethiopian Airlines. They are a corporation whose job it is to make money, and they are good at it. Airlines need new aircraft to continue to grow and prosper, and that's what they're doing.

Leave it to you to see the worst in a great positive story.
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Old August 10th, 2009, 07:03 PM   #15
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Quote:
Originally Posted by Mercutio View Post
Ethiopia is measuring more than 1 million square kilometers and counting more than 80 million people, thus it is a country where air links are vital to the national infrastructure. In addition, Ethiopian Airlines is one of Africa’s most successful airlines and is providing vital passenger and cargo services for the whole region.

Sounds like a great investment to me!

Of all places, I am really surprised that people here are playing the poverty card and belittle the fact that a country is trying to move on.
Thank you!
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Old August 11th, 2009, 03:22 PM   #16
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Quote:
Originally Posted by Carver02 View Post
If you don't know what you're talking about (and you don't) then be quiet.

Ethiopian Airlines has been one of Africa's best companies for decades. Even under the communist Derg, Ethiopian Airlines was noted for its technical, financial, and organizational skill.

Aircraft from Africa and the Middle East go to Addis Ababa for servicing; and there is a reason why other African airlines send their people to Addis for training. Because the Ethiopians are good.

As the articles indicate, Ethiopian is profitable and is growing well. Their current force of 767s will need replacing, and spending $4 billion over 10+ years is quite reasonable.

Ethiopian Airlines is possibly the best run state owned corporation in Africa, and you try to accuse them of corruption. If that's the first thing that enters your mind then YOU have a problem.
oh calm down, as if i killed your family or something. so what that its the one of the best airlines in africa? the fact is ethiopian money is better spent than on airplanes. $4.6 billion is no joke for a country like that, so maybe you should think before you attack others for having problems. saying its the best run, you best have some proof of that.
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Old August 12th, 2009, 09:25 AM   #17
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Quote:
Originally Posted by martinx View Post
oh calm down, as if i killed your family or something. so what that its the one of the best airlines in africa? the fact is ethiopian money is better spent than on airplanes. $4.6 billion is no joke for a country like that, so maybe you should think before you attack others for having problems. saying its the best run, you best have some proof of that.
You seem to be conflating Ethiopia with Ethiopian Airlines. Ethiopia is a country. Ethiopian Airlines is a company. Companies exist to make money, and Ethiopian Airlines has proven it knows how to do that.

Quote:
Ethiopian Airlines 25th Most Profitable airline in the World

According to Air Transport World (ATW July 2009), Ethiopian Airlines ranks as the 25th most profitable airline in the world, based on net profit. Ethiopian is the only African carrier in the top 25 airlines in the world based on net profit. In 2008, the airline had a net profit of $51,803,000. The most profitable airline based on Net profit in the world is FedEx followed by Qantas Group and Lufthansa, the ranking includes both passenger and freight operators.

Ethiopian Airlines' Operating Revenue for 2008 was $939,920,000, an increase of 33.6% from prior year. It carried a record 2,744,000 passengers in 2008. The report puts Ethiopian airlines fleet currently at 34.
http://nazret.com/blog/index.php?tit...&c=1&tb=1&pb=1
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Old August 13th, 2009, 02:01 AM   #18
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Ethiopians feel extremely proud of Ethiopian Airlines. The recent generation doesn't have much to be proud of, we mostly like to bask in past glories. So ET is a diamond to us, the light at the end of the dark tunnel. Its success shows us what we can achieve if we change. That is why you get a strong response from us when someone put ET in a negative light. Having said that though, you have to accept ET has been an amazing organization, the original transport airline in Africa, the one with impeccable safety record, low fares, robust routes around the world, good service and not to mention some pretty female hostesses seen, specially in the HaileSelassie era.

Recently, in conjunction with the countries economic performance, ET is even advancing further, winning the best African airline twice recently, including in 2009.

So I understand that how eyebrows are raised when investment is made in the billions where as the country is known to be the poorest in the world. If you look deeper, specially now, you can see Ethiopia is changing economically at least, having the best performing non-oil economies certainly in Africa and probably in the world. However this performance is relative as Ethiopia is just raising itself from the mud at this time, so initial movement can only be upwards.
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Old August 13th, 2009, 03:53 AM   #19
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Mercutio and Carver, thank you for your replies.

Clearly some people confuse Ethiopia and Ethiopian Airlines.

EA is a business, not a charity. Second, $4 billion is (I'm willing to bet) a bank credit. EA is a very well-run company that is very profitable so it's a great credit risk for banks. Considering how difficult it is to get credit right now, especially when airlines are going bankrupt (or teetering on the edge), this is a very good thing for the airline's image.
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Old August 13th, 2009, 06:38 AM   #20
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Code Data
*IATA Code: ET
*ICAO Code: ETH
*Callsign: ETHIOPIAN

Internationally, Ethiopian Airlines is usually referred with its IATA code "ET" , although that coding standard will eventually migrate to the ICAO code standard. ICAO deals with navigation laws, IATA deals with trade laws.
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