Commercial Aviation
Ethiopian Airlines in Talks for Airbus A220 and A350 Aircraft Order
Ethiopian Airlines explores ordering 20 Airbus A220 regional jets and six A350 widebodies, diversifying its fleet to support expansion plans.
This article summarizes reporting by Bloomberg. This article summarizes publicly available elements and public remarks.
Ethiopian Airlines is reportedly in preliminary discussions with European aerospace manufacturers Airbus regarding a new aircraft order that could significantly alter its fleet composition. According to reporting by Bloomberg on May 12, 2026, the African carrier is evaluating the potential purchase of approximately 20 Airbus A220 regional jets alongside around six additional A350 widebody aircraft.
The negotiations arrive as the state-owned airline celebrates its 80th anniversary and pursues an aggressive global expansion strategy. With a stated long-term objective of doubling its fleet size by 2040, Ethiopian Airlines is actively positioning itself as a premier global connector to rival industry giants such as Emirates and Turkish Airlines.
Deliberations remain in the early stages, and there is no absolute certainty that a final agreement will be reached or that the proposed aircraft quantities will remain unchanged. Airbus has declined to comment on the specifics, citing the confidentiality of customer discussions, as noted in the original Bloomberg report.
Fleet Diversification and the A220
A potential order for the Airbus A220 would represent a major strategic shift for Ethiopian Airlines. Historically, the carrier has relied exclusively on the Boeing 737 family for its short-haul narrowbody jet operations, supplementing those routes with an aging fleet of de Havilland Dash 8-400 turboprops for domestic and regional flights.
Bridging the Capacity Gap
Industry data provided by The Air Current indicates that the 100-to-160-seat A220 would fill a crucial capacity gap within the airline’s current lineup of 147 aircraft. The regional jet is optimized for thin, point-to-point intra-African routes that may be economically unviable for larger Boeing 737s, yet require more range, capacity, and speed than the existing turboprop fleet.
Securing this order would be a notable victory for Airbus. According to aviation analysts, it would mark the first time the African carrier has purchased this specific European regional jet, representing a significant diversification of its historically Boeing-dominated narrowbody strategy.
Expanding the Widebody Network
Alongside the regional jets, Ethiopian Airlines is reportedly looking to bolster its long-haul intercontinental capabilities with around six additional Airbus A350 widebody aircraft.
Africa’s Largest A350 Operator
The airline is already the largest operator of the A350 on the African continent. According to fleet data from ch-aviation and Air Data News, Ethiopian currently flies 22 A350-900s and four A350-1000s, with another 17 A350-900s already pending delivery. Adding six more airframes would further solidify its intercontinental network, which currently transports over 21 million passengers and more than 850,000 tons of cargo annually to over 140 destinations across 82 countries.
Infrastructure and Supply Chain Realities
This fleet expansion is running in parallel with massive infrastructure investments. The airline is backing a $12.5 billion greenfield mega-airport project in Bishoftu. Designed to become Africa’s largest aviation hub, the facility recently broke ground and is projected to handle 60 million passengers annually upon its initial opening, with plans to expand capacity to 110 million by 2036.
Navigating Delivery Delays
Like many global carriers, Ethiopian Airlines has had to navigate ongoing aerospace supply chain disruptions. Group CEO Mesfin Tasew has previously acknowledged that delivery delays from both major manufacturers have constrained network capacity. Evaluating multiple manufacturers allows the airline to hedge against these global bottlenecks.
The planned deliveries of over 100 aircraft by 2032 are not the end.
According to reports from The Reporter Ethiopia, CEO Mesfin Tasew made this remark during the airline’s 80th-anniversary airshow in Addis Ababa on May 14, 2026. He framed the current order book, which includes over 100 firm orders from both Boeing and Airbus, as just one phase of a much longer-term transformation effort.
Strategic Implications
AirPro News analysis
We view Ethiopian Airlines’ dual-track negotiations with Airbus as a calculated hedge against ongoing duopoly supply chain constraints. By evaluating the A220, the carrier is signaling a willingness to absorb the operational complexity of introducing a completely new aircraft type, which requires distinct pilot training, maintenance protocols, and spare parts inventory, in exchange for greater network flexibility and market expansion.
Furthermore, diversifying the regional fleet away from a strict reliance on Boeing provides the airline with enhanced negotiating leverage for future narrowbody campaigns. If the new Bishoftu mega-airport is to reach its ambitious 60-million-passenger initial target, Ethiopian Airlines will need a highly optimized, high-frequency feeder network across the African continent. The A220 is uniquely positioned to fulfill this role, allowing the airline to profitably open new regional markets that are currently underserved.
Frequently Asked Questions
How many aircraft is Ethiopian Airlines reportedly looking to buy?
According to Bloomberg, the airline is in preliminary talks for approximately 20 Airbus A220 regional jets and around six Airbus A350 widebody jets.
What is the current size of Ethiopian Airlines’ fleet?
The carrier currently operates 147 aircraft and has firm orders for more than 100 new aircraft from both Boeing and Airbus, with deliveries scheduled through 2032.
Why is the airline considering the Airbus A220?
The A220 would fill a specific capacity gap between the airline’s smaller Dash 8-400 turboprops and its larger Boeing 737 narrowbodies, allowing it to efficiently serve thin intra-African routes.
Sources:
Photo Credit: Ethiopian Airlines
Commercial Aviation
ASL Aviation Holdings Buys Two Boeing 747-400ERF Freighters
ASL Aviation Holdings acquired two Boeing 747-400ERF aircraft on Aug 7, 2026, shifting them from leased to owned capacity in Europe.
ASL Aviation Holdings has finalized the purchase of two Boeing 747-400ERF freighters, transitioning the aircraft from leased assets to fully owned capacity within its European network.
In a press release issued on August 20, 2026, the Dublin-headquartered company confirmed that the acquisition formally closed on August 7, 2026. The aircraft are currently operated by subsidiary ASL Airlines Belgium and represent a strategic investment in the group’s long-haul cargo-aircraft capabilities.
Securing long-haul freighter capacity
The transaction involves two specific airframes already integrated into the ASL Group fleet. The acquired aircraft are Manufacturer Serial Number (MSN) 33516, registered as OE-IFB, and MSN 33945, registered as OE-IFD.
By purchasing these Boeing 747-400ERF aircraft, ASL Aviation Holdings shifts them from lease agreements to owned assets. The company stated that this move secures ongoing capacity for its shipping customers and supports the continued operation of its international air cargo platform without disrupting current flight schedules.
Global fleet development
The acquisition of the Belgian-operated widebodies follows recent growth initiatives in other global regions. On August 13, 2026, ASL Aviation Holdings announced the continued expansion of its regional presence and operations across Australia and New Zealand.
Both the Oceania expansion and the European widebody acquisitions are part of a broader group-wide fleet and network development strategy aimed at strengthening the company’s position in the global freight market.
AirPro News analysis
Purchasing previously leased aircraft is a conventional strategy for cargo operators looking to lock in capacity and control long-term operating costs. The Boeing 747-400ERF remains a highly capable platform with unique nose-loading capabilities, and replacement options in the current widebody freighter market are limited. We view this acquisition as a stabilizing move that guarantees ASL Airlines Belgium can maintain its current long-haul service levels without exposure to future lease rate fluctuations.
Sources: ASL Aviation Holdings
Photo Credit: ASL Aviation Holdings
Airlines Strategy
Icelandair Acquires 49% Stake in Maltese AOC for $686K
Icelandair Group acquired a 49% stake in a Maltese AOC holding company for USD 686,000 to expand EU operational flexibility.
Icelandair Group hf. has completed the acquisition of a 49% stake in a holding company controlling a Maltese Air Operator Certificate (AOC) for USD 686,000, securing a strategic foothold within the European Union regulatory environment.
The transaction, finalized on August 20, 2026, involves Fly Play Europe Holdco ehf., whose subsidiary holds the currently suspended Maltese AOC MT-85. The certificate was previously associated with the defunct Icelandic budget carrier PLAY, which ceased operations following its bankruptcy in September 2025.
Strategic expansion into Malta
In a press release issued on August 20, 2026, Icelandair announced the purchase from FPE hs., a fund managed by Isafold Capital Partners hf. The Airlines stated the acquisition is designed to increase operational flexibility and support the development of its primary hub at Keflavik International Airport (KEF).
The completion of the transaction remains contingent on reaching an agreement with the Transport Malta Civil Aviation Directorate (TMCAD) regarding the continued use of the certificate. Publicly available data from Transport Malta indicates that AOC MT-85 is currently suspended and has no Commercial-Aircraft registered to it.
Icelandair Group hf. CEO Bogi Nils Bogason outlined the company’s rationale in the official announcement.
“Acquiring a stake in a Maltese air operator certificate is primarily intended to increase operational flexibility, strengthen Icelandair’s competitiveness, and create new opportunities, all with the aim of supporting the continued development of our Keflavik hub and thereby safeguarding jobs and a strong operating environment for the Manufacturing industry in Iceland for the years to come,” Bogason said.
Origins of the AOC and future options
The Maltese AOC originally belonged to a subsidiary of PLAY. Following the budget carrier’s financial collapse in late 2025, creditors enforced security interests to recover the Maltese holding structure. Icelandair initially announced a Letter of Intent regarding the Acquisitions in April 2026 before finalizing the purchase in August.
As part of the agreement, Icelandair has secured options to increase its stake in Fly Play Europe Holdco ehf. at a later stage. The company utilized Arma Advisory as its financial adviser for the transaction.
AirPro News analysis
We view Icelandair’s move to secure a Maltese AOC as a calculated step to bypass the bilateral traffic right limitations inherent to its Icelandic registration. Malta has become a preferred jurisdiction for European operators seeking a flexible, EU-based Regulations environment. By acquiring an existing corporate structure rather than applying for a new certificate, Icelandair likely aims to accelerate its timeline for establishing a secondary European operating base, provided TMCAD approves the reactivation of the suspended certificate.
Sources: Icelandair Group hf.
Photo Credit: Fly Play Europe
Commercial Aviation
Saudia Group Signs Financing MoU for 144 Airbus Aircraft
Saudia Group, Saudi EXIM, and Crédit Agricole CIB sign MoU to finance 144 Airbus jets due for delivery through 2032.
Saudia Group, the Saudi Export-Import Bank (Saudi EXIM), and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) signed a tripartite memorandum of understanding (MoU) on August 25, 2026, to arrange financing for the airline’s incoming fleet of Airbus aircraft.
The agreement, finalized on the sidelines of the French-Saudi Investment Roundtable in Paris, integrates international bank financing with Saudi national export credit instruments. According to a press release from the Saudi Press Agency, Crédit Agricole CIB will act as the financier and arranger, while Saudi EXIM will provide credit risk insurance to reduce exposure for financial institutions.
Fleet expansion and delivery timeline
The financing arrangement is designed to support Saudia Group’s substantial aircraft backlog. In May 2024, the company placed an order for 105 Airbus A320neo-family aircraft, bringing its total Airbus orderbook to 144 jets.
The May 2024 order includes 12 Airbus A320neo and 93 Airbus A321neo aircraft. Saudia Group allocated 54 of the A321neos to its mainline operations. The remaining 51 aircraft, comprising 12 A320neos and 39 A321neos, are designated for its low-cost subsidiary, flyadeal. Deliveries for the 105-aircraft order are scheduled to occur between 2026 and 2032.
Strategic financial partnerships
The tripartite structure aims to broaden the pool of potential international lenders by mitigating risk through state-backed credit insurance. This aligns with Saudi Arabia’s broader economic objectives to increase non-oil exports and enhance global connectivity.
Saudia Group Director General Eng. Ibrahim Al-Omar highlighted the strategic nature of the agreement in a public statement.
“This MoU marks an important step in developing financing solutions that support Saudia Group’s growing fleet investments, while reflecting the continued advancement of national capabilities and instruments that enable Saudi sectors to access international sources of finance. We value this partnership with Saudi EXIM and Crédit Agricole CIB, which provides us with broader financing options to support our growth and expansion plans.”
Al-Omar also noted that diversifying financing sources strengthens the group’s flexibility in executing future investments and expanding network capacity.
AirPro News analysis
We view this financing structure as a pragmatic approach to managing the massive capital requirements of Saudia Group’s fleet modernization. By layering Saudi EXIM’s credit risk insurance over Crédit Agricole CIB’s financing, the airline group effectively lowers the risk profile for international lenders. While the specific aircraft models and total financial value covered by this non-binding MoU remain undisclosed, securing a reliable financing pipeline is critical as the airline prepares to absorb over 100 new narrowbody aircraft through 2032.
Sources: Saudia Group Press Release
Photo Credit: Saudia Group
-
UAV & Drones7 days agoDufour Aerospace Aero-200 eVTOL Targets 2027 Serial Production
-
Technology & Innovation5 days agoSkyband Systems M100 LRU Validates GNSS Jamming Protection
-
MRO & Manufacturing4 days agoBoeing SPEEA Engineers Reject Contract, Authorize Strike
-
Military Technology5 days agoSaab Unveils A3-001 Supersonic Stealth Drone Concept
-
Business Aviation4 days agoFTAI Aviation Closes $2B Warehouse Financing for 2026 SPV