ETHIOPIAN AIRLINES INCORPORATE LOAN


Overview

  • Reference: P-ET-DA0-009
  • Approval date: 23/03/2011
  • Start date: 23/05/2011
  • Appraisal Date: 13/07/2010
  • Status: OngoingOnGo
  • Implementing Agency: Ethiopian Airlines
  • Location: ADDIS ABABA

Description

The Project involves the participation by African Development Bank (ADB) in a corporate loan to Ethiopian Airlines for the financing of its investment plan from 2010 to 2018, and targeted to the purchase of five Boeing 777-200LR long range passenger jets. The aircraft will be used to replace old aircraft and to expand capacity on long haul routes to and from Africa. The aircraft will be delivered between November 2010 and July 2011.


Rationale

The project will enable Ethiopian Airlines to acquire modern and efficient aircraft (mobile infrastructure) in order to improve its competitive service in a growing market. The fleet plan phasing and development strategy is such that the new aircraft will operate along intercontinental routes while the displaced aircraft will be deployed to the regional routes. The improved operation of the airline will have concomitant effects on Addis Airport infrastructure performance and maintenance.

Enhanced market position of Ethiopian Airlines to capture new traffic while contributing to the implementation of Ethiopian Airlines


Benefits

*Contribution to economic growth

*Employment increased and wages paid

*Third party Maintenance Repair Operations (MRO) business increased

*Implemented Investment Plan *Company performance enhanced

*Sales Revenue grew

*Foreign Exchange

*Earnings increased

*IncreasedGovernment tax revenues

*Modernized fleet Increase on Routes being operated.


Key contacts

TIHNGANG Joseph Mbi - OPSD4


Costs

Finance source Amount
ADBUSD 10,495,965
DeltaUSD 401,933,915
TotalUSD 412,429,880