Ethiopian Airlines has secured a multi-billion loan for the purchase of new Boeing planes.
The largest airline in Africa has secured a USD $450 million (Sh. 69.3 billion) loan from Citi Group that will finance five new Boeing aircraft. These will include three Boeing 737-8 and two Boeing 777F Cargo planes.
“The loan will be secured against the value of the five planes and has been arranged exclusively by Citi’s Corporate Banking and Export Agency and Finance teams. It is guaranteed by the Export-Import Bank of the United States (EXIM),” Ethiopian said in a statement.
According to the airline, the five new Boeing planes will bolster Ethiopian Airline’s fleet to 150 in total and delivery of all the aircraft will be completed in the U.S. state of Washington in December.
“The new arrivals will help Ethiopian serve all its destinations by accelerating its expansion throughout the world and will further bolster Ethiopian Cargo & Logistics Services’ position as Africa’s largest cargo network operator. Ethiopian Airlines has ambitions to grow its fleet to over 270 aircraft by 2035,” said Ethiopian.
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“This financing will allow us to expand our fleet size by adding five new aircraft, three B737-8 MAXs and two 777 Freighter. We are grateful for the mutually beneficial partnership we have established with Citi and look forward to further strengthening it. Fleet expansion being one of our strategic growth pillars, we will continue expanding and modernizing our fleet size so as to grow our business and reach new markets,” Ethiopian Airlines Group CEO Mr. Mesfin Tasew said.
The airline has established itself as the leading airline in the continent. It is currently flying to 135 international passenger and cargo destinations, including 63 African cities. On top of the belly hold capacity, Ethiopian Cargo & Logistics Services covers 67 dedicated Freighter services deploying 17 freighter aircraft.
