Boeing Strike: A Brake on Ethiopian Airlines’ Growth

An impact on deliveries and long-term growth

The prolonged strike at Boeing, which has lasted more than seven weeks, will have a direct impact on the growth of Ethiopian Airlines, its CEO Mesfin Tasew has lamented . According to him, this strike has caused delays of several months in the deliveries of aircraft, a factor that will penalize the airline in the long term.

The strike, which ended in November after workers agreed to a new labor agreement, cost Boeing and its suppliers more than $10 billion . The American manufacturer was particularly affected because the strike paralyzed production of key models such as the 737 , 777 and 767 , in addition to its military programs.

Delays already present before the strike

Even before the strike began, Ethiopian Airlines was facing delivery delays from Boeing. According to Mesfin Tasew, these delays go back almost a year , and the strike has exacerbated these difficulties. In contrast, the company stressed that its competitor Airbus continues to deliver its planes on time.

Boeing’s delays are hurting the Ethiopian company’s long-term growth strategy, an area where Ethiopian Airlines had hoped to rely on more timely deliveries to support its development.

A relationship of trust despite the 737 MAX accident

In March 2019, an Ethiopian Airlines Boeing 737 MAX 8 crashed, killing 157 people. The crash, which was partly attributed to a flaw in Boeing’s MCAS anti-stall software, left a “serious scar” on the airline. However, Mesfin Tasew said that despite the tragic event, Ethiopian Airlines continues to trust Boeing, hoping that the aerospace giant will resolve its internal issues and come back stronger.

The impact of regional crises on Ethiopian Airlines’ results

The CEO also mentioned the impact of geopolitical crises, such as the conflicts in Sudan or the Middle East , on the company’s financial results. These situations have led to a significant reduction in flights to certain destinations such as Beirut , Tel Aviv , Khartoum , and Asmara .

Outlook despite challenges

Despite these external challenges, Mesfin Tasew remains optimistic about the future of the company. Ethiopian Airlines , which stands out as one of the few profitable airlines in Africa, is expected to achieve its financial targets by the end of the year, thanks in part to the recent delivery of new Airbus A350-900 aircraft .

Conclusion

Delivery delays caused by the Boeing strike, coupled with the effects of geopolitical crises, are posing considerable challenges to Ethiopian Airlines. However, the company continues to believe in a recovery thanks to its strong partnerships and investments in modern aircraft such as the Airbus A350-900.