Ethiopian Airlines along with the African Development Bank (AfDB) has entered into an agreement to fund the development of a multibillion-dollar airport located in Abusera, which lies approximately 40 kilometers south of Addis Ababa.

The initiative seeks to strengthen Ethiopian Airlines' role as the leading airline in Africa, concurrently bolstering Addis Ababa's importance as a crucial center for air travel.

The recently developed Abusera International Airport, with an anticipated price tag of $7.8 billion, aims to alleviate the overcrowding issues currently faced at Bole International Airport, which is approaching its yearly limit of 25 million travelers.

Ethiopia last year signed an agreement with Dubai-based engineering and consulting firm Sidara to design the new four-runway airport, which will have a capacity of 100 million passengers a year and parking for 270 aircraft.

Ethiopian Airlines has signed an agreement for the design of what will become 'the largest airport in Africa.' This initiative is also expected to boost regional economic growth and serves as a key component of the carrier’s strategic plan for 2035, emphasizing network enlargement, infrastructural enhancement, and investments in workforce capabilities.

The memorandum of understanding was signed in Abidjan on March 14 by Ethiopian Airlines CEO Mesfin Tasew Bekele and AfDB Deputy President for Regional Development, Integration, and Business Delivery Nnenna Nwabufo.

The Letter of Intent (LOI) typically serves as a non-binding document that details an agreement among two or more parties aiming to establish a formally binding contract later. Similar to a Memorandum of Understanding (MoU), this document usually initiates a commercial interaction and aids in setting out mutual expectations before entering into a legal arrangement. "The signing today of the Letter of Intent for the major new airport development initiative underscores our firm dedication at AfDB towards backing Ethiopia’s significant flagship air transportation endeavor," stated Ethiopian Minister of Finance, Ahmed Shide. "This project will bolster Ethiopian Airlines' leadership position within passenger and freight sectors, while simultaneously improving Africa's worldwide airline network and interconnectivity, thereby reinforcing the region's standing as a key aviation center."

The AfDB stated that it considers regional transportation essential for boosting trade and movement throughout Africa. They have prioritized this area as a crucial component of their strategy for regional integration, along with ensuring food and energy security and transitioning to more sustainable forms of energy. "The African Development Bank is completely dedicated to backing this pivotal initiative," noted Akinwumi Adesina, the bank's president. He added that the project aims to reinforce Africa's position as a leader in aviation and promote greater economic unity among nations on the continent.

Situated in Bishoftu, this airport will enhance Bole’s capabilities and strengthen Ethiopian Airlines' capacity to broaden its connections within Africa as well as increase its international presence.

Ethiopian Airlines announced a historic revenue of $7.02 billion for the fiscal year concluding on June 30, 2024, marking a rise of 14% compared to the prior year. During this period, they carried 17.1 million travelers, including 13.4 million on international flights and 3.7 million within Ethiopia’s borders. This information was provided by SyndiGate Media Inc. Syndigate.info ).