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Ethiopian Airlines Faces Growth Constraints From Boeing Strike Delays

Ethiopian Airlines Faces Growth Constraints From Boeing Strike Delays

Ethiopian Airlines’ CEO believes the carrier’s long-term growth ambitions will take a hit because of the recent seven-week Boeing machinist strike. Production of the 737 MAX and 777 was abruptly stopped during the strike, two aircraft types the African carrier has on order with Boeing.

Ethiopian’s CEO Mesfin Tasew told AFP that Boeing’s latest woes will impact the carrier’s long-term growth objectives. Expected deliveries of 737 MAX and 777F aircraft earlier this year have been set back, and Tasew believes the strike will exacerbate delays, saying,

While Boeing managed to end the costly seven-week strike, it won’t be that easy to simply restart plane production in just a few days. The manufacturer has stated that it would take several weeks before it can fully restore production capacity, leaving Ethiopian facing further delays to deliveries.

The airline is also a customer for the Boeing 787 Dreamliner and the upcoming Boeing 777X, placing an order for eight airframes plus twelve options in March, and had hoped to expand its freight capacity with the addition of more 777Fs. Due to the delays, Ethiopian Airlines has been forced to lease MAX aircraft to ensure enough capacity for its near-term schedule, including four airframes due to start arriving this month.

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