East African Carrier to Decide on Boeing and Airbus Acquisitions Next Week
Ethiopian Airlines is poised to decide what aircraft it will buy from
Boeing Co.
BA -0.77%
and
Airbus Group
EADSY +0.27%
NV, as the African carrier seeks to add as many as 70 new jets to bolster efforts to build an East Africa aviation hub.
The
carrier will make a decision by the end of next week on modernizing and
expanding its short-haul fleet, Chief Executive
Tewolde Gebremaria
m
said. It will later commit to adding 20 more long-haul planes.
The deals could have a combined list price of more than $11 billion,
though airlines typically get large discounts.
The
aircraft should boost expansion plans at one of Africa's biggest
airlines. "A larger fleet is one of our pillars of growth," Mr.
Gebremariam said in an interview.
Ethiopian Air operates Boeing's 787 Dreamliners and has bought but not taken delivery of a fleet of A350-900s from rival Airbus.
It said that it is now looking to buy even larger twin-engine long-haul
jets. The carrier is considering purchases of the Boeing 777X—launched
last year at the Dubai air show—or the A350-1000 from Airbus, Mr.
Gebremariam said. The deal would have a list price value of $8 billion,
depending on the model chosen.