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Ethiopian Airlines is the fastest growing in Eastern Africa.

Last Updated: 4/5/2010 9:57:54 AM

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Ethiopian Airlines and Kenya Airways battle for dominance over the skies of Africa, but it looks Like Ethiopian Airlines is edging ahead with some bold strategic moves.....

Ethiopian Airlines on fast growth path
Ethiopian Airlines on fast growth path

In January, Ethiopian Airlines shook the African aviation market with the announcement that it had signed an agreement with Boeing to purchase another ten B737-800s aircraft, delivery of which is scheduled to begin November 2011.

The total order is $767 million at a list price.While Kenya Airways operates a smaller fleet of 26 aircraft, Ethiopian Airlines has a mixed fleet of 37 aircraft which include freighters, with another 45 aircraft on order — making it the fastest growing carrier in the region.

Ethiopia Airlines’s orders include eight, 78 seater Bombardier Q400s to begin arriving in March 2010, to replace an ageing fleet of five Fokker, 50 seater aircraft currently serving domestic routes.

The Q-400 will be used for both domestic and regional services, probably Juba, Kampala, Arusha and Nairobi. Ethiopia Airlines has also ordered five B777-200LRs to be delivered starting in November, the ten B737s slated to begin arriving in July 2011 and twelve A350s set scheduled for delivery in 2017.

Both airlines have until recently operated all Boeing fleets, and were the first African carriers to order the new fuel-efficient, Boeing 787 “Dreamliner” aircraft. Kenya Airways had ordered nine B787 Dreamliners while Ethiopian Airlines had ordered 10.

But frustrated by delays by Boeing, Ethiopian Airlines has ordered 12 Airbus A350 aircraft to serve growing demand. According to Flight Global magazine, Ethiopian Airlines is planning to replace its ageing fleet of B767 with the new B787 Dreamliners once they are delivered. The Addis Ababa-based carrier’s 2023 fleet vision comprises 23 Boeing 737-700 and -800s, 17 787-8s and 28 aircraft in the 300-plus seat range - a new capacity segment for Ethiopian, which currently has 23 passenger jets: 10 Boeing 767-300ERs, eight 757-200ERs and five 737-700s.

Meanwhile, Kenya Airways has been talking to Airbus and is expected to order at least six to nine Airbus aircraft in the range A310 to A330 by April, but CEO Naikuni is evasive on acquisition modes and on sourcing for Airbus pilots, who are few in the region.“The board is taking into account the (Dreamliner) delays and how they impact on the company’s future strategy.

In view of this, Kenya Airways is deliberating on the pros and cons of available options and will be announcing the final decision on aircraft purchase soon,” Mr Naikuni said in an interview on email.

Kenya Airways is owned 23 per cent by the government of Kenya, 26 per cent by Royal Dutch Airlines KLM, with the balance held by individual and institutional investors mainly in East Africa, UK, Netherlands and South Africa.

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