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Ethiopian Airlines, Africa’s largest carrier by revenue, agreed to buy 20 redesigned 737 models valued at USD 2.1 billion in the largest single order for Boeing (BA) Co. planes from the continent.
The order for the single-aisle Max 8, the first of four redesigned 737 models, comes with an option for an additional 15 planes, it was stated.
The Boeing model will be a key component of the Addis Ababa-based carrier’s 15-year plan to expand its business to carry 18 million passengers a year, Ethiopian Airlines Chief Executive Officer, Tewolde Gebremariam, said during a tourism forum in Chicago.
“The African market has a lot of  great potential, but service has been a problem,” Richard Aboulafia, an aerospace consultant with Fairfax, Virginia-based Teal Group, said in a telephone interview from Washington.
“There are strong signs of improvement, led by Ethiopian and other airlines. This order shows a commitment to operate the most modern jets on domestic and intra-African routes.”
Boeing’s Max 8 is due to enter service in 2017 and is being outfitted with new engines from a General Electric Co. joint venture.