NAIROBI, Aug 18 (Reuters) – Ethiopian Airlines will commence the production of aircraft parts in collaboration with Boeing (BA.N) with an initial investment of $15 million, as announced by the government’s investment agency on Friday. The largest airline in Africa, which is state-owned, has already finalized the agreement with the involvement of the local state Industrial Parks Development Corporation, according to the Ethiopian Investment Commission’s statement on X, formerly known as Twitter. The joint venture aims to manufacture various aerospace parts, including aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and other components, as stated by the commission. The project is expected to generate employment opportunities for over 300 Ethiopians, although the commission did not specify the commencement date for production. Boeing has not yet provided any comment on the matter. Other African carriers, such as Kenya Airways (KQNA.NR), have reported flight disruptions due to a shortage of parts caused by the Ukraine war crisis, which has impacted the supply of Russian titanium, a crucial component in global aviation. It remains unclear whether Ethiopian Airlines has also faced similar challenges in terms of parts availability. In June, the airline, which operates a fleet of 140 aircraft, announced a 20% increase in earnings to $6.1 billion in its latest financial year. Reporting by George Obulutsa; Editing by Duncan Miriri and Angus MacSwanOur Standards: The Thomson Reuters Trust Principles. Acquire Licensing Rights, opens new tab
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