Latest news with #737MAX7
Arabian Post
3 days ago
- Business
- Arabian Post
Ethiopian Airlines Eyes Fleet Expansion with Regional Jet Acquisition
Ethiopian Airlines is evaluating the procurement of 20 to 30 regional or small narrowbody jets to enhance its domestic operations and replace ageing aircraft, according to Chief Executive Officer Mesfin Tasew Bekele. The airline is considering three aircraft models: Embraer's E-2 series, Airbus's A220, and Boeing's 737 MAX 7. The final number of aircraft to be ordered will depend on the selected model. The 737 MAX 7, which offers a larger seating capacity, is still awaiting certification, posing a potential challenge to its selection. The A220 and E-2 series are already in service with other carriers, providing a more immediate deployment option. Ethiopian Airlines, Africa's largest carrier, is experiencing robust travel demand. However, it faces challenges due to delayed aircraft deliveries and engine shortages. The airline has three Boeing 787s grounded because of a lack of Rolls-Royce engines and five turboprop aircraft grounded due to a shortage of Pratt & Whitney engines. Maintenance delays have extended engine turnaround times from the typical three months to six months or more.
Business Insider
4 days ago
- Business
- Business Insider
Ethiopian Airlines plans major fleet upgrade with order for 20 regional jets
Ethiopian Airlines, Africa's largest and most profitable carrier, is set to purchase at least 20 regional or small narrowbody planes as part of its strategy to grow its domestic fleet and retire aged aircraft. Ethiopian Airlines plans to expand its domestic fleet with at least 20 regional or small narrowbody planes. The airline is currently evaluating aircraft models including Airbus A220, Embraer E-2, and Boeing 737 MAX 7. Challenges such as aircraft delivery delays and engine shortages are affecting operations despite increased demand. The Addis Abeba-based airline is presently testing multiple models, including the Airbus A220, Embraer E-2, and Boeing's yet-to-be-approved 737 MAX 7. While the Boeing 737 MAX 7, one of the contenders for the new regional order, has a larger seating capacity, its certification has yet to be finalized. The actual number of aircraft bought will depend on the type chosen, according to a report seen on Reuters. This strategic move comes as Ethiopian Airlines is witnessing an increase in travel demand while struggling to achieve capacity owing to aircraft delivery delays and ongoing global supply chain problems. Several planes have also been grounded owing to engine shortages, placing pressure on operations even as passenger and cargo numbers increase steadily. "We are receiving airplanes from both Boeing and Airbus, but deliveries have been delayed, some by three months, some six months, some more," CEO Mesfin Tasew Bekele said on the sidelines of an annual IATA meeting of global airline leaders. Boeing delays and forced leasing The Ethiopian Airlines fleet is primarily dominated by Boeing models, however, delays from the United States aircraft manufacturer have created substantial operating issues. In April 2024, Ethiopian Airlines noted that it is waiting for 737 MAX jets and 777 freighters. Due to the continued delays, the airline decided to lease aircraft in August 2024 to sustain its growth trajectory. The supply delays came despite a substantial order announced by Ethiopian Airlines in 2023 to buy 11 Boeing 787 Dreamliners and 20 Boeing 737 MAX planes as part of a long-term fleet upgrade strategy. Infrastructure investments for Ethiopian Airlines The desire for additional planes is consistent with Ethiopian Airlines' overall strategy of expanding its infrastructure and services. In March 2025, the airline struck a historic deal with the African Development Bank to work on a new airport project to meet rising demand in both the passenger and cargo markets. With an anticipated $7.8 billion investment, the airport expects to accommodate 60 million people per year by 2040, more than tripling its existing capacity of 17 million. This investment demonstrates the airline's goal to establish itself as a global aviation center that connects Africa to the rest of the globe. Futhermore, in April 2025, Ethiopian Airlines announced a partnership with Archer Aviation of the United States to create an electric air taxi service in the East African country. The service is intended to use Archer's Midnight aircraft, which is a four-passenger electric vertical takeoff and landing (eVTOL) vehicle designed for short-haul urban transport. The program aims to alleviate traffic congestion in East African cities while also lowering carbon emissions, making Ethiopian Airlines one of the first African airlines to aggressively pursue green aviation technologies.
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Business Standard
4 days ago
- Business
- Business Standard
Ethiopian Airlines considering order for 20 regional jets, CEO says
Ethiopian Airlines is looking to order at least 20 regional or small narrowbody jets as it moves to expand its domestic fleet and replace some ageing aircraft, the airline's chief executive told Reuters on Monday. "We are evaluating three aircraft models, the E-2 from Embraer, the A220 from Airbus, and the 737 MAX 7 from Boeing," CEO Mesfin Tasew Bekele said in an interview. The final order quantity will depend on the type chosen, he added. Boeing's 737 MAX 7, which has a larger seating capacity and sits at the bottom of a larger category than the Airbus A220 and Embraer E-2, is yet to be certified. Africa's largest carrier is experiencing strong travel demand but has been constrained by jet delivery delays and the grounding of some aircraft due to engine shortages stemming from supply chain disruptions. "We are receiving airplanes from both Boeing and Airbus, but deliveries have been delayed, some by three months, some six months, some more," Bekele said on the sidelines of an annual IATA meeting of global airline leaders. The company is also in talks with lessors to bring onboard some jets to ease capacity constraints. The airline is among several facing grounded aircraft due to bottlenecks in engine maintenance plants. Ethiopian has three Boeing 787 widebody jets grounded due to a shortage of Rolls-Royce engines, with five turboprop aircraft grounded due to a shortage of RTX's Pratt & Whitney engines. "Normally engines were supposed to be repaired and returned in three months typically, but now it takes six months or even more to get them repaired and returned," Bekele said.
Yahoo
29-05-2025
- Business
- Yahoo
Why Boeing Stock Just Popped
Boeing is seeking certification of its 737 MAX 7 and 737 MAX 10 models. The company plans to increase 737 MAX production rates in a few months, then increase them again next year. Boeing's plans imply near-term revenue growth of as much as 24% from its most popular product. 10 stocks we like better than Boeing › Boeing (NYSE: BA) shares soared Thursday, up 3.4% through 11:30 a.m. ET -- not just because of today's tariffs news, but because of a pair of positive news reports from Reuters. Last night, Reuters reported that Boeing "expects to finish certification of its best-selling 737 MAX family," specifically the 737 MAX 7 and 737 MAX 10 models, "by the end of the year." Boeing has orders for 1,200 MAX 10 airplanes and 332 MAX 7s awaiting fulfillment, worth tens of billions of dollars to the aerospace giant at list prices. Separately, this morning, the news agency reported that Boeing plans to accelerate production of all 737 MAX models, from 38 airplanes per month currently to 42 later this year -- then to 47 planes per month by early 2026. So, yes, Boeing is probably benefiting a bit today from positive news on a court ruling lifting President Donald Trump's "tariffs on everyone." And there is a tariff aspect to this story if the trade war ends and retaliatory tariffs on Boeing planes go with it. But the biggest news today is specific to Boeing itself. The two production rate increases are planned to total about a 24% increase in plane production and a roughly 24% boost to revenue and cash flowing into the aerospace giant -- granted, just from the 737 production line, but the 737 is Boeing's most popular product -- probably happening within a year from now. Very roughly, a 24% boost to Boeing's $66.5 billion in annual revenue for 2024 might put the company back at 2012 levels, when sales were $82 billion per year and earnings were $3.9 billion. That would be better than Boeing's current situation, with sales still depressed and earnings negative. However, it would still mean a price-to-earnings ratio of 39 times earnings for Boeing stock -- and that's assuming Boeing even succeeds in ramping production rates as it hopes to, which isn't certain. Sorry to say, that's too much to pay for Boeing stock, and in my opinion, at least, Boeing stock remains a sell. Before you buy stock in Boeing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Boeing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Boeing Stock Just Popped was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
