Boeing and Ethiopian Airlines have come together to establish a joint venture (JV) to manufacture aircraft parts. Ethiopia’s state investment authority has announced an investment of $15 million in the JV with the partnership involving Industrial Parks Development Corporation. The parts manufacturing facility will be built on a four-hectare plot at Kilinto II Industrial Park.
Ethiopian Airlines will spearhead the venture with the production of various aerospace components, including aircraft thermal-acoustic insulation mats, electrical wiring harnesses, and other essential parts with Boeing’s expertise. These components are integral to ensuring the safety, efficiency, and reliability of aircraft operations.
The partnership will create job opportunities to over 300 potential aerospace engineers in Ethiopia.
This joint venture comes at a right time, when the global aviation industry is reeling under supply chain issues with lack of spares hindering the routine aircraft maintenance schedules.
Kenya Airways recently experienced disruptions due to a shortage of aircraft parts stemming from global supply chain disruptions. These disruptions were triggered by the conflict in Ukraine, which impacted the availability of Russian titanium.
Ethiopian Airlines, with a strong fleet of 140 aircraft, has recently demonstrated a strong financial performance with a 20% rise in profits to $6.1 bn during its previous fiscal year, highlighting its resilience and adaptability within the ever-evolving aviation industry.
As the airline’s supply of aircraft parts to Boeing will continue to upsurge, the new facility will enable the airline to cater for the growing demand not just by creating additional employment opportunities but also garnering crucial foreign exchange earnings.
The commission is yet to declare an exact date for start of production while Boeing has not released an official statement yet.
