Ethiopian Airlines (ET, Addis Ababa International) Chief Executive Officer Tewolde GebreMariam has confirmed the Horn of Africa-based carrier has suspended its Regional Jet evaluation plans.
“We have decided to suspend the evaluation of the 100-seater regional aircraft acquisition project, since the market size of the selected regional routes is growing faster than we expected,” he told Bloomberg in an interview.
As such, while the airline studies passenger trends, its existing fleet of four B737-700s, fifteen B737-800s, and a single B737-8 will be used to cover its thinner regional routes, he added.
Earlier this year, Tewolde said Ethiopian was considering the C-Series/A220 and the E195-E2 for an order which could entail ten firm orders and ten options.
Commenting on government's plans to privatize the Ethiopian Aviation Holding Group, the CEO said the drive was likely to see foreign firms taking stakes in the group's various units rather than an outright stake sale. The reason behind this, he said, is because Ethiopian Airlines itself is already a significant economic contributor to the country's economy while being profitable and capable of raising capital for growth.
Among the more attractive group entities that are already targeted for foreign investors include Ethiopian Hotel and Tourism Services, the Ethiopian Airports Company, Ethiopian MRO Services where negotiations are underway with companies including Boeing, Airbus, and Bombardier Aerospace, and its logistics arm, Ethiopian Express & Ancillary Services, where a 51/49 joint-venture with DHL Express should be established shortly.
Another possibility involves countries where Ethiopian is establishing/operating joint-venture carriers, which include Malawi, Zambia, Guinea, Togo, and Chad, gaining equity in Ethiopian itself on a reciprocal basis. In April this year, Ethiopia and Djibouti agreed to swap stakes in strategic public enterprises including Ethiopian Airlines in a bid to improve their economic ties.
