Ethiopian Airlines adds its first Boeing 767 freighters
Ethiopian Airlines is leasing three Boeing 767 freighters to augment its rapidly growing all-cargo fleet as it pursues a strategic roadmap to grow the cargo division into a self-sustaining profit center with revenue of $2.9 billion. dollars by 2035.
Titan Aircraft Investments, the joint venture between Atlas Air Worldwide (NASDAQ: AAWW) aircraft leasing subsidiary and Bain Capital Credit, announced on Monday that it has placed three converted 767-300 Extended Range freighters on long-term leases with Ethiopian Airlines Group. The 767 is a new aircraft type for Ethiopian Cargo, which currently operates nine Boeing 777 freighters and four converted 737-800 freighters.
The medium jumbo jet belonged to Ethiopian. In what appears to be a sale-leaseback agreement, Ethiopian has sold them to Titan and will lease them in a creative financial transaction to raise capital. Atlas Air officials declined to comment.
Ethiopian is remodeling the aircraft to carry heavy containers on the main deck of its repair and maintenance facility in Addis Ababa under a partnership struck last year with Israel Aircraft Industries, which has developed the modification kit.
Africa’s largest cargo network operator will take delivery of a reconfigured freighter this month, with the second to be delivered by the end of the year and the third to be completed in 2023, Titan Aircraft said. Investments.
The production schedule has moved back about two months as Israel Aircraft Industries and other conversion specialists deal with supply chain delays for materials and components.
Atlas Air Worldwide is a leading provider of outsourced aircraft operations and aviation services. It is best known for cargo airline Atlas Air, which operates the world’s largest fleet of Boeing 747 and other cargo aircraft for airlines, logistics providers, express delivery companies, e-commerce platforms and some retailers. He is also the majority shareholder of Polar Air Cargo.
Atlas recently agreed to be sold to private investors for nearly $3 billion.
Titan Aircraft Investments’ freighter fleet now numbers 10 aircraft, five of which are Boeing 767s converted from passenger to freighter.
Increase freight activity
In May, Ethiopian placed an order with Boeing (NYSE: BA) for five factory-built 777 freighters, scheduled for delivery between September 2023 and 2025, and officially evaluating the purchase of five next-generation 777-8 freighters expected to enter the market in 2027.
The cargo fleet expansion is part of Ethiopian Airlines’ 15-year strategy to develop its cargo and logistics business to provide multimodal logistics services worldwide. The company has started construction in Addis Ababa of what it calls the largest e-commerce terminal in Africa and has expanded its refrigerated handling capabilities for pharmaceuticals.
Ethiopian envisions a fleet of 24 freighters serving 70 destinations, up from 66 today, which will carry 1 million tons of cargo by 2035. Last fiscal year, it carried more than 750,000 tons of cargo.
Cargo has been instrumental for the airline during the pandemic, generating almost 50% of the company’s revenue in 2021, said Abel Alemu, managing director of Ethiopian Cargo and Logistics Services. recent episode of STAT Media Group’s “Cargo Masterminds” podcast.
When COVID essentially shut down passenger flying, Ethiopian’s maintenance facility reconfigured 25 seatless jets to carry cargo in the cabin. Auxiliary freighters have been gradually returned to passenger service, with “more powerful” operations slowing further after the European Union’s temporary exemption for cabin cargo without approved safety features expired on July 31.
Alemu said Ethiopian is also considering the A350 freighter, Airbus’ answer to the Boeing 777-8.
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