US Under Secretary of Commerce, Gilbert Kaplan, recently led a large delegation of US businesses and officials from across the US government on a visit to Ethiopian Airlines, signing a series of major deals with the African-based carrier, including the construction and operation of new airports.
Under Secretary Kaplan met with Ethiopian Airlines CEO, Tewolde Gebremariam, to discuss potential ways for US companies to partner with the airline to achieve further growth.
During the visit, Ethiopian Airlines announced deals with General Electric, Honeywell, a multinational conglomerate producing commercial and consumer products, as well as engineering services and aerospace systems, and a training grant from the US Trade Development Agency (USTDA).
USTDA is partnering with the Sabre Corporation to provide an Airline Solutions Training Program Technical Assistance grant for Ethiopian Airlines Enterprise, which could leverage up to $21,2 million in financing to support the procurement of airline information technology solutions, consulting services, and industry best practices.
Ethiopian Airlines is procuring twelve General Electric engines valued at $444 million, as well as a separate $473,5 million 10-year maintenance contract.
The carrier has also signed two contracts with Honeywell – a $10,2 million deal for the Bole Airport expansion and a $7,2 million Auxiliary Power Unit service contract.
“Ethiopian Airlines is a great partner for the US Department of Commerce and the US business community,” said Kaplan. “This is evidenced by their close collaboration with several US firms including Boeing, whose aircraft make up roughly seventy percent of its fleet, and General Electric, which we just announced will provide Ethiopian Airlines with nearly a billion dollars’ worth of aircraft engines and maintenance services.”
Kaplan said he was visiting Addis Ababa with members of the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) to meet with Ethiopian government and business leaders to explore ways to deepen commercial engagement between the US and Ethiopia.
Regarding the deal, GebreMariam said: “Ethiopian is the most significant source of US-Ethiopia business relations. These relations cover the full spectrum of the commercial aviation sector, ranging from aircraft, engines, navigation to flight-tracking systems. These latest deals further solidify the commercial relations between US firms and Ethiopian Airlines Group and amount to billions of US dollars in business and thousands of jobs. With Ethiopian Vision 2025, fast growth, more business collaborations lie in the years ahead.”
For over 70 years, since the airline’s founding, American companies and the US government have enjoyed successful partnerships with Ethiopian Airlines, demonstrating the potential of co-operation between the two countries.
The President’s Advisory Council on Doing Business In Africa, composed of 23 US companies across a variety of sectors, will also be visiting Kenya, Côte d’Ivoire and Ghana to gather insight into market opportunities and challenges faced by US businesses, which will inform their subsequent recommendations to US President Donald Trump on how to strengthen bilateral trade and investment with these countries.