Ethiopian Airlines, in collaboration with the consultancy firm Dar Al-Handasah (Dar), has announced plans to design and construct a state-of-the-art airport in Abusera Bishoftu, a location just south of Addis Ababa, Ethiopia’s capital. This strategic project aims to enhance the region’s aviation infrastructure, positioning the new airport as Africa’s largest airport. The current Bole Addis Ababa International Airport (ADD) serves as the primary gateway to the city, but with the anticipated capacity of the new facility, it will revolutionize air travel in the region.

The agreement between Ethiopian Airlines and Dar Al-Handasah was formalized on August 10, with the Ethiopian Press Agency confirming the details. The project is set to be completed within five years, broken down into two key phases. Phase one of the construction will focus on building a terminal capable of handling 60 million passengers annually, requiring an estimated $6 billion in initial investment. The second phase will further expand the airport’s capacity, allowing it to accommodate over 100 million passengers per year.

Strategic Partnership and Expertise

Mesfin Tassew, the CEO of Ethiopian Airlines Group, hailed the agreement as a “historic milestone” for the airline. He expressed confidence in Dar’s ability to deliver, citing their extensive experience in designing and managing large-scale airport projects. The consultancy firm, which is part of the Sidara group, has a proven track record, having contributed to significant developments at major international airports, including Dubai International Airport (DXB), King Abdul Aziz International Airport (JED) in Saudi Arabia, and Catumbela Airport (CBT) in Angola.

Tariq Al Qanni, Dar’s Director of Operations, emphasized the firm’s comprehensive approach to such projects. He noted that Dar’s ability to manage entire projects from design to execution, with a single point of viability, sets them apart from other consultancy firms. The company’s integrated and thorough project delivery ensures the construction will meet the highest standards of quality and efficiency.

Exploring Financing Options

As the plans for the new airport take shape, Ethiopian Airlines is exploring various financing options to support the project. CEO Tassew mentioned that loans could potentially finance the construction, though the specifics of these options are still under consideration.

Bole International Airport and Ethiopian Airlines’ Hub Strategy

Currently, Ethiopian Airlines operates out of Bole Addis Ababa International Airport (ADD), one of the busiest airports in Africa. The airport can handle 22 million international passengers and 2 million domestic passengers annually. The airline has effectively utilized ADD as a central hub, strategically positioning it as a major transit point for flights to and from Africa. Ethiopian Airlines’ model is similar to the hub-and-spoke system used by the Middle Eastern giants Emirates, Etihad Airways, and Qatar Airways, facilitating connections between Africa, Europe, North America, and Asia.

According to data from Cirium, an aviation analytics company, Ethiopian Airlines is scheduled to operate 2,811 weekly flights in August, with 2,119 of these being intra-Africa routes, accounting for 75.3% of its operations. International flights to and from Africa represent 10.4% of the airline’s weekly schedule, with 293 flights planned.

This ambitious new airport project marks a significant step forward for Ethiopian Airlines and the country’s aviation sector. Once completed, it is expected to further solidify Ethiopia’s role as a leading aviation hub in Africa and beyond.