AfDB Approves USD 40 Million loan to Ethiopian Airlines
Tunis, 23 March 2011 - The Board of Directors of the African Development Bank (AfDB) approved on Wednesday, 23 March 2011 in Tunis, a USD 40-million second lien corporate loan to Ethiopian Airlines to support the purchase of five Boeing 777-200LR passenger jets. As part of the Ethiopian Airlines’ investment plan for 2010-2018, the aircraft will replace old aircraft and expand its capacity on long haul routes to and from Africa.
Ethiopian Airlines was established in 1945 and is the national flag-carrier of Ethiopia. With its excellent service reputation, highly respected indigenous training and maintenance operations, and well integrated cargo network, Ethiopian Airlines continues to play a major role in capacity development within Ethiopia and through that, as an engine of the country’s economic growth. The airline’s Addis Ababa hub has become an important gateway for businessmen traveling in and out of Africa and taken on a role as a hub of African economies’ integration with the rest of the World.
The project under consideration will also create about 400 jobs in the short term and 800 jobs in the medium term. Most of these jobs are for skilled people. About 25% of the new positions are expected to be filled by women. The income levels of the new employees will be enhanced by the project; and this will in turn contribute to poverty reduction in Ethiopia.
Supporting the Project and the company’s overall long term investment plan, the AfDB is Ethiopian Airlines’ partner in its continued technical and service excellence that are in line with the Ethiopian government’s priorities and strategies, as well as with AfDB’s Country Strategy for Ethiopia.