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Ethiopian Air Said to Plan $3 Billion Deal for Airbus A350s

Benjamin D Katz

BloombergJune 18, 2017

An Airbus A350-900 aircraft, manufactured by Airbus SAS, flies overhead during an aerial display on the second day of the 14th Dubai Air Show at Dubai World Central (DWC) in Dubai, United Arab Emirates, on Monday, Nov. 9, 2015. The Dubai Air Show is the biggest aerospace event in the Middle East, Asia and Africa and runs Nov. 8 - 12. Photographer: Jasper Juinen/Bloomberg via Getty Images

Ethiopian Airlines Enterprise plans to buy 10 ofAirbus SE’s newest A350 wide-body jets in a transaction worth more than $3 billion at advertised prices, according to people familiar with the plan.

The deal is set to be announced this week at the Paris Air Show, according to the people, who asked not to be named as the order negotiations are private. Ethiopian will take the mid-sized A350-900 version of the plane, which has a list price of $311 million, according to one person.

Sub-Saharan Africa’s largest carrier already has an order for 12 -900 variants, though it has also been looking at the stretched -1000, as well asBoeing Co.’s rival 777-8, Chief Executive OfficerTewolde Gebre Mariam said last year.

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Ethiopian Air wants more wide-body aircraft to help extend a hub-based business model that relies on transferring lucrative inter-continental travelers via its home base in Addis Ababa to and from destinations across Africa.