Ethiopian Airlines will manufacture aircraft parts through a venture partnership with Boeing, the government’s investment agency said on Friday. The carrier, the Ethiopian Investment Commission and the Industrial Parks Development Corporation of Ethiopia signed a Memorandum of Understanding to build a facility near Killinto Industrial Park for the manufacturing of aerospace parts.

Building aerospace parts

Ethiopian Airlines built a manufacturing plant in 2009. As part of this project and today’s announced Memorandum of Understanding, Ethiopian Group will manufacture aerospace parts including aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and other parts. This was announced by the Ethiopian Investment Commission on X.

Additionally, this joint venture will include Boeing and a planned capital of $15 million which will create employment opportunities for over 300 Ethiopians.

Reuters reported other African carriers like Kenya Airways have said they are suffering a shortage of parts caused by the Ukraine war crisis. This crisis cut the supply of Russian titanium, which is an important component of global aviation.

Boeing has not released an official statement on the partnership and there is no immediate information on when the production will begin.

Bottlenecks in the industry

The Ethiopian Airlines Group, owner of the carrier and Addis Ababa’s Bole International Airport, expects continued growth in the coming years. The company’s post-pandemic four-pillar growth strategy is focusing on human resource development, modernizing the fleet, developing the infrastructure, and investing in technology.

Photo: Philip Pilosian/Shutterstock.

The MoU with Boeing to manufacture aircraft parts will address part of these concerns. Globally there have been bottlenecks in the availability of parts and spares. These bottlenecks include trouble accessing raw materials, staffing, transport, and more, with suppliers having to introduce mitigation actions and cooperating with other companies to address the period of uncertainty volatility and complexity.

Ethiopian Airlines Group investments

Experiencing double-digit growth over the past decade, Ethiopian Airlines projects a similar growth trajectory in the years ahead. To address this growth, the group is planning a new airport capable of serving 100 million passengers annually.

This new airport will be located in Bishoftu, 25 miles outside of Addis Ababa and will be linked to the city through a planned passenger rail system.

Ethiopian Airlines Group expects the construction of the airport to have an estimated cost of $4 billion. It will be done in three phases. The first phase, as explained by the US’ International Trade Administration, expected to be completed by 2028, will include two terminals. French engineering and design company Groupe ADP developed the master plan and site selection.

Envisioned to accommodate a passenger capacity five times greater than the current volume and encompassing substantial investments, this new airport presents an immense opening for businesses across a diverse spectrum of industries. These opportunities span from project design and management to the provision of heavy machinery, passenger rail services, aviation ground equipment, baggage handling, and cargo/passenger security systems. Additionally, a multitude of supplementary air passenger services, including franchises and retail ventures, are also part of this growing project.

What do you think about Ethiopian Airlines plans to manufacture aircraft parts? Let us know in the comments below.