Ethiopian Airlines and Boeing Sign Agreement for 777 Component Services Program - 05 April, 2011

Ethiopian Airlines and Boeing today announced an agreement that enables Ethiopian to participate in the 777 Component Services Program (CSP). CSP is a parts-provisioning program that significantly reduces the airline's up-front investment in spare parts and offers a quick and reliable supply of critical parts from a pool shared by participating 777 operators.

Ethiopian Airlines is the 13th airline in the 777 Component Services Program, which is offered jointly by Boeing and Air France Industries/KLM Engineering & Maintenance. Ethiopian’s agreement for the 777 CSP initially covers the three 777-200LRs (longer range) worldliner, currently operated by the airline. Two additional deliveries are scheduled for April and July of this year.

"The long range of the 777-200LR like ours necessitate a dedicated inventory pool of selected high-value, dispatch-critical components,” said Tewolde Gebremariam, CEO of Ethiopian Airlines. “The CSP offers Ethiopian Airlines significant efficiency and savings in managing the supply chain by reducing our investment in costly parts inventories."

The Component Services Program allows airlines to outsource most of the cost and logistics associated with keeping important parts on hand, while significantly reducing inventory. Under the program, Boeing and Air France/KLM commit to providing parts covered in the agreement within 24 hours of a request. The inventory required to support an airplane type can cost millions of dollars.

"Ethiopian Airlines has become a key player in the region by providing superior customer service and on-time operations," said Dale Wilkinson, vice president of Material Services for Boeing Commercial Aviation Services. "The reduced costs and the efficient operation of the Component Services Program are especially beneficial to an airline with a relatively new 777 operation."

About Ethiopian

Ethiopian Airlines, one of the largest and fastest growing airlines in Africa, made its maiden flight to Cairo in 1946. With the addition of new flight services to Hangzhou, Milan, and Madras Ethiopian will provide dependable services to 62 international destinations spanning four continents.

Recently, Ethiopian won the 2011 "AFRICAN CARGO AIRLINE OF THE YEAR" Award for its excellence in air cargo. Ethiopian won the NEPAD Transport Infrastructure Excellence Awards 2009 and the 2009 "Airline of the Year" award from the African Airlines Association (AFRAA). In August, 2008, Ethiopian won "the 2008 Corporate Achievement Award" of Aviation & Allied Business for setting the pace towards the development and growth of the African aviation industry. Ethiopian is also the first African carrier to win the 2008 Brussels Airport Company Award in recognition of its distinguished long haul operations witnessed through the introduction of new routes, new products, and close cooperation with Brussels Airport in marketing activities.