Ethiopian Airlines nears Boeing cargo plane order, sources say

By Tim Hepher, Dawit Endeshaw and David ‌Shepardson

PARIS/ADDIS ABABA, Sept 2 (Reuters) - ​Ethiopian Airlines ​is nearing a deal to buy up to 10 long-haul Boeing freighters as plans edge forward for a new African hub to compete with Gulf carriers, two industry sources said.

The deal is likely to include ‌two of Boeing's current-generation 777F aircraft, helping the U.S. planemaker bridge a gap to the delayed ⁠new 777-8F freighter model, which is expected to make up the rest of the order, the sources said.

One source said the order would involve eight ‌to 10 aircraft, barring last-minute adjustments.

Boeing said ‌it would not comment on speculation. Ethiopian Airlines had no immediate comment.

Under international emissions rules, Boeing is due to stop making the widely used 777F at the end of 2027, closing a lucrative chapter following sales of more than ​400 units.

But delays in developing the successor to the 777 jet family, the 777X — which includes the new 777-8F cargo model — have put pressure on Boeing to keep making the current 777F for a while to prevent its supply ⁠chains from going cold.

In December, Boeing asked the Federal Aviation Administration for a waiver allowing it to deliver another 35 777F freighters, citing strong demand and a ​delay in 777X certification. The FAA said on Tuesday the waiver request remained pending and that no decision had been made.

Boeing said its request would allow it to continue meeting some ​demand until the new 777-8F entered service.

It was not immediately clear whether ‌the 777Fs involved in the Ethiopian deal were destined to be delivered before or after the deadline, but one industry source said Boeing was confident of winning approval for the exemption.

Boeing is ⁠building two 777F freighters a month, according to a recent FAA filing.

NEW MEGA-HUB

Ethiopian Airlines already operates 12 similar 777F cargo planes, as well as three Boeing 767 freighters and four converted 737s on medium routes, part of a fleet of 147 jets.

In March, Africa's largest airline ⁠said it had signed lease agreements with AerCap for two Boeing 777-300ER passenger planes being converted into freighters.

It has also been studying Airbus's ​new offering, the A350F, sources said. Its maiden flight, originally due in the third week of September, is now expected around the end of the month.

The expansion comes as Ethiopian Airlines is helping to fund a $12.5-billion plan for what officials say will be Africa's largest airport, with ‌phase one due to open in 2030.

Work on the four-runway Bishoftu International airport, about 45 km (28 miles) southeast of Addis Ababa, began in January. It will transport 3.7 million metric ‌tons of cargo a year, according to the African Development Bank.

Ethiopian Airlines handled 897,000 metric tons in the most recent financial year, up ⁠16%, state media reported last month.

CEO Mesfin Tasew told ‌Reuters in June that Ethiopian Airlines ​would also decide within three months on a separate order for 25 small passenger jets.

(Reporting by Tim Hepher, Dawit Endeshaw, David Shepardson, Dan Catchpole and Allison Lampert. Editing by Alex Richardson, Mark Potter ‌and Jan Harvey)

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