2 July 2013

Ethiopia: Pockets Record Profit Despite Temporary Grounding of Boeing 787

Chief Executive Officer of Ethiopian Airlines Tewolde Gebremariam said Ethiopian Airlines has pocketed a record profit despite the temporary grounding of its Boeing 787 Dreamliner planes, according to Associated Press.

Tewolde said on Monday that Ethiopian is expecting a record profit with 20 to 25 percent growth in revenue and number of passengers.

He said Ethiopian Air would have been even more profitable, if it had not been for the grounding of its four 787 planes for more than three months. In January the U.S. Federal Aviation Administration grounded the aircraft after incidents with smoldering batteries on two different planes.

Ethiopian Airlines is seeking to be compensated by Boeing and has already notified the airplane manufacturer of the financial loss it incurred due to the grounding, the CEO said. In a related news the Export-Import Bank of the United States (Ex-Im Bank) has authorized nearly 130 million USD in financing to support the export of Boeing long-range aircraft. Ex-Im Bank Chairman Fred P. Hochberg announced the transaction in Addis Ababa. Hochberg is in Ethiopia conducting meetings with government and business leaders as part of a week-long business development trip to India, Ethiopia and South Africa. Ethiopian, the leading airlines in Africa, has 75 international destinations.

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