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Africa’s top airline forced to lease planes as Boeing lags on deliveries

Simon Osuji by Simon Osuji
August 28, 2024
in Business
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Africa’s top airline forced to lease planes as Boeing lags on deliveries
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Delays from Boeing Co. in delivering aircraft have compelled Ethiopian Airlines, Africa’s largest carrier, to lease planes to maintain its expansion plans.

Over half of Ethiopian Airlines’ fleet comprises Boeing models. According to CEO Mesfin Tasew Bekele, the Addis Ababa-based airline has been waiting since April for deliveries of 737 Max jets and 777 freighters.

However, Boeing has yet to offer a new timeline for when the planes will arrive, Bekele said during an interview with Bloomberg Television.

“We are waiting to hear from them and definitely, late delivery of airplanes will affect our growth plan,” Tasew said. “In parallel with that, we didn’t wait for Boeing to deliver the ordered airplanes, and now we are leasing airplanes,” he said.

Boeing did not respond to a request for comment. The company, currently navigating one of its toughest periods, saw commercial aircraft deliveries stabilize in July, matching the numbers from the same month last year.

Both Boeing, based in Arlington, Virginia, and rival Airbus SE are experiencing delivery delays due to ongoing parts shortages and workforce turnover, which have persisted since the Covid-19 pandemic. Adding to Boeing’s challenges is the looming threat of a strike that could potentially shut down its Seattle-area factories next month.

Several airlines have raised concerns about Boeing’s delayed aircraft deliveries, highlighting the strain on their operations and finances. Ryanair Holdings Plc expressed its ongoing frustration, noting that the delays may prevent it from reaching its annual passenger targets due to holdups with the 737 Max jets.

Despite recent challenges, Ethiopian Airlines has maintained its commitment to Boeing. In 2019, one of the workhorse’s 737 Max models crashed minutes after takeoff after pilots battled a feature later linked to a faulty Boeing design. This crash, the second fatal incident involving the model within five months, prompted a worldwide grounding of the single-aisle aircraft.

Last year, the airline announced orders for 11 Boeing 787 Dreamliners and 20 Boeing 737 Max aeroplanes as part of its fleet modernization strategy.

CEO Mesfin Tasew Bekele confirmed that Ethiopian Airlines expects to receive 16 aircraft this fiscal year, which ends in June. This includes four A350-1000s from Airbus, with deliveries scheduled between October and March.

However, Boeing has only tentatively promised the delivery of a 777 freighter in September, and has not yet provided a schedule for the next 737 Max planes.

Boeing is also set to open a new office in Addis Ababa in October, aiming to boost collaboration for joint production of aircraft components. Ethiopian Airlines is also actively pursuing further expansion across Africa, building on its existing partnerships with operators in Togo, Malawi, and Zambia.

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