Ethiopian Acquisition of Ten Boeing B787s Principally Financed by J.P. Morgan
Addis Ababa, Ethiopia (Press Release) – Ethiopian Airlines, the fastest growing airline in Africa, has secured $1 billion of financing from J.P. Morgan for its 10 Boeing B787-8- Dreamliners. The Export-Import Bank (Ex-Im Bank) of the United States has provided export credit agency support via guaranteedÃ‚Â loansÃ‚Â that cover 85% of the total cost of the aircraft. The balance will be financed by a group of financial institutions including ING Capital, the Emerging Africa Infrastructure Fund (EAIF), The Netherlands Development Finance Company (FMO), the ICF Debt Pool LLP (ICF), and from internal cash resources of Ethiopian.
Ethiopian received its first Dreamliner on August 14, 2012 in Seattle, Washington. A series of events are planned to celebrate this milestone in the presence of Ethiopian and U.S. Government officials, Ambassadors and representatives of international organizations as well as Boeing and other partnersÃ¢â‚¬â„¢ executives. The airline will take delivery of five Dreamliners before the end of the fiscal year.
“The financial support for our acquisition of the 10 B787-8 aircraft is critical to Ethiopian Airlines as we aim to become the leading African airline. Our first B787-8 aircraft will first be deployed, on rotation basis, in our African destinations. Thereafter, once we receive our second Dreamliner by mid-September, it will operate on our Washington D.C. routeÃ¢â‚¬Â, said Tewolde Gebremariam, CEO of Ethiopian. He added: Ã¢â‚¬Å“Ethiopian is the first airline outside Japan to own this game changing aircraft. We are proud toÃ‚Â continueÃ‚Â our pioneering role in African aviation and to provide the best possible travel experience to our customers.”
“With uncertainty in theÃ‚Â aircraft financingÃ‚Â market about a potential funding gap and tightening credit conditions, J. P. MorganÃ¢â‚¬â„¢s $1 billion aircraft financing is testimony to our trusted relationship with Ethiopian Airlines and the strength and capacity of our trade finance capabilities,” said Jeremy Shaw, head of J.P. MorganÃ¢â‚¬â„¢s trade finance business in Europe, the Middle East and Africa (EMEA). “J.P. Morgan is committed to continued expansion in the SubSaharan Africa region where our clients are seeking cost effective, large scale funding to facilitate their strategic growth plans.”
This fiscal year alone, Ethiopian will phase-in 14 additional aircraft, including 5 Dreamliners, 3 brand new B737-800 with Sky Interior, and 5 exclusively business class configurated Q-400s. Ethiopian, which has registered an average yearly growth rate of 30% for the last 8 years, plans to become the leading aviation group in Africa by 2025.
To cater for this fast growth, the airline is undertaking numerous facility expansions, which include the construction of the biggest perishable cargo terminal in the world, a new state-ofthe art maintenance hangar and the biggest aviation training academy in Africa.
About Ethiopian Airlines
Ethiopian Airlines, the fastest growing airline in Africa, made its maiden international flight to Cairo in 1946 and now the Airline provides dependable services to 69 international destinations spanning four continents.
Ethiopian is proud to be a Star Alliance Member. The Star Alliance network is the leading global airline network offering customers convenient worldwide reach and a smoother travel experience. The Star Alliance network offers more than 21,555 daily flights to 1,356 airports in 193 countries.
Ethiopian is a multi-award winner for its commitment and contributions towards the development and growth of the African aviation industry and in recognition of its distinguished long-haul operations enhanced by the introduction of new routes and products. Recently, Ethiopian won Gold in the African Airline of the Year 2011/2012 Awards organized by the African Aviation News Portal. Ethiopian also received the 2011 AFRAA award for being consistently profitable over the years and has won the “AFRICAN CARGO AIRLINE OF THE YEAR 2011 AwardÃ¢â‚¬Â for its excellence in air cargo. Ethiopian also won the NEPAD Transport Infrastructure Excellence Awards 2009 and “the Airline of the Year 2009 Award” from the African Airlines Association (AFRAA).
With its acquisition of and firm orders for several new modern aircraft and its fast expanding network, the airline is well positioned to become the leading aviation group in Africa, per its Vision 2025 strategic roadmap.
About J.P. Morgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the worlds most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available atÃ‚Â www.jpmorganchase.com
For more information about this press release, please contact:
Ethiopian Airlines Manager PR & PublicationsÃ‚Â
Tel: (251-1) 517-84-07
J.P. Morgan Media ContactÃ‚Â
Tel: +44(0) 207 134 5285