Ethiopian Airlines secures financing for two 777Fs
20 / 12 / 2023
Source: Boeing
Ethiopian Airlines has secured a $450m loan agreement that it will partly use to finance the purchase of two of its previously announced Boeing 777 freighters.
The loan will also finance three Boeing 737-8 passenger aircraft.
The airline said that “delivery of all the aircraft will be completed in the US state of Washington in December” but it did not specify when the freighters would join its fleet.
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 took delivery of its 10th 777F last month, for operation by Ethiopian Cargo. The aircraft is part of an order for five 777Fs made by Ethiopian in May 2022.
The B777 freighter can carry up to 107 tonnes of cargo with a maximum range of 9,200 km.
In March last year, Ethiopian also signed a Memorandum of Understanding (MoU) with Boeing to purchase five 777-8Fs.
Plus, in September last year, Ethiopian signed up to lease three Boeing 767-300ER converted freighters from Titan Aviation.
Back in 2021, Ethiopian also partnered with Israel Aerospace Industries (IAI) to launch a B767-300ER freighter conversion line at Ethiopian MRO facilities in Addis Ababa.
In total, Ethiopian currently operates an all-cargo fleet of 10 777Fs, two 767-300Fs (with a third earmarked for conversion) and four 737-800Fs.
The five new aircraft will take Ethiopian’s overall passenger and freighter fleet to 150.
Ethiopian said it aims to grow its fleet to over 270 aircraft by 2035.
Ethiopian Airlines Group chief executive Mesfin Tasew said: “We are pleased to announce that we have reached an agreement with Citi to secure a USD $450m loan. 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 flies to 135 international passenger and cargo destinations, including 63 African cities.
On top of the airline’s belly capacity, Ethiopian Cargo & Logistics Services also offers 67 dedicated freighter services.
