Ethiopian Airlines to Choose Between Boeing 737 MAX and Airbus A320neo in August

Ethiopian Airlines expects to finalize a major narrowbody aircraft order in August, according to statements from the carrier's leadership. The African airline plans to acquire 25 new single-aisle jets, with the choice narrowed to two candidates: the Boeing 737 MAX and the Airbus A320neo.

The decision carries weight for both manufacturers. Ethiopian Airlines ranks as the largest carrier in Africa and operates one of the most diverse fleets on the continent. A commitment of this size would reshape the airline's short and medium-haul operations for years to come.

What the airline wants

Chief Executive Officer Mesfin Tasew confirmed the timeline, telling reporters the airline aims to reach a decision by August. The 25 aircraft would replace older narrowbodies and support growth on regional routes across Africa and into the Middle East.

Ethiopian currently operates both Boeing and Airbus widebodies, but its narrowbody backbone has long relied on the Boeing 737 family. The airline flies the 737-800 and has orders in place for additional 737 MAX jets. Adding the Airbus A320neo family would introduce a new type into the mix, potentially complicating maintenance, training, and spare parts logistics.

Still, the airline appears willing to consider the Airbus option. Executives have said the final choice will depend on pricing, delivery slots, and financing terms offered by each manufacturer.

The Boeing 737 MAX factor

Ethiopian Airlines has a complicated history with the 737 MAX. In March 2019, Flight 302 crashed shortly after takeoff from Addis Ababa, killing all 157 people on board. That accident, combined with the Lion Air crash months earlier, led to a worldwide grounding of the MAX for nearly two years.

Despite that history, Ethiopian returned the 737 MAX to service after regulators cleared the type. The airline has continued to place orders for the aircraft since then. Choosing the MAX again for this batch would signal continued confidence in the type.

Boeing has been working to rebuild its production output after quality control problems earlier this year slowed deliveries. Delivery timing could play a role in Ethiopian's final decision.

The Airbus challenge

The Airbus A320neo family has captured a growing share of the global narrowbody market. The A320neo and larger A321neo offer competitive fuel efficiency and range, and Airbus has secured orders from several African carriers in recent years.

For Ethiopian, adding the A320neo would mark a significant shift. The airline would need to train pilots on a new type, adjust maintenance procedures, and manage a mixed narrowbody fleet. Those costs weigh against any potential savings from the aircraft itself.

Airbus, however, faces its own supply constraints. Delivery slots for the A320neo family remain tight through the end of the decade, which could push some deliveries further out than Ethiopian would prefer.

Fleet expansion plans

The narrowbody order fits into a broader expansion strategy at Ethiopian Airlines. The carrier has been growing its widebody fleet as well, with orders for the Boeing 777X and Airbus A350. The airline also operates a large cargo division that has expanded in recent years.

Ethiopian's hub at Addis Ababa Bole International Airport serves as one of Africa's busiest connecting points. The airline uses the location to link cities across Africa with destinations in Europe, Asia, and the Americas. Narrowbody jets play a central role in feeding those long-haul flights from regional markets.

A new terminal and airport project has also been announced for the Ethiopian capital, with the capacity to handle far more passengers than the current facility. Fleet growth aligns with those infrastructure plans.

What to watch next

When Ethiopian announces the winner in August, the decision will offer clues about how African carriers weigh the two dominant narrowbody families. Boeing has historically held a strong position on the continent, but Airbus has been gaining ground.

Financing terms matter as much as the aircraft themselves for airlines of this size. Both Boeing and Airbus typically work with export credit agencies and leasing companies to structure deals that fit the buyer's cash flow needs. Ethiopian has used a mix of ownership and leasing arrangements for past fleet additions.

The order size of 25 aircraft, while smaller than some recent mega-deals from Middle Eastern and Asian carriers, still represents significant revenue for the winning manufacturer. List prices for the 737 MAX and A320neo families run in the range of 100 to 130 million dollars per aircraft, though airlines rarely pay list price on orders of this scale.

For now, the aviation industry waits for Ethiopian's decision. The outcome will influence not just the airline's future operations but also the competitive dynamics between Boeing and Airbus across the African market.