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European Aeronautic Defence and Space Co NV:
Africa Will Spend $112 Billion on Aircraft by 2028, Airbus Says

By Jason McLure

Nov. 20 (Bloomberg) -- African airlines will need 959 large aircraft at a cost of about $112 billion between now and 2028 as annual passenger growth increases faster than the global average, Airbus SAS said.

African air passenger numbers will increase by an average of 5.6 percent a year over the period, or 1 percent faster than the global average, Andrew Gordon, director of market analysis for Airbus, told reporters today in the Ethiopian capital, Addis Ababa.

“The market to, from, and within Africa is really growing very, very rapidly,” Gordon said. Airbus’s share of the market for large jets in Africa is 21 percent, compared with its global average of 59 percent, he said.

On Nov. 15, Airbus won an order from Ethiopian Airlines for 12 of its A350 aircraft in a contract worth about $2.8 billion at list price, bringing its total orders for the plane to 505. The deal came after delays of two years in Ethiopian’s order with Boeing Co. for 10 787 Dreamliner jets, which it still plans to purchase.

To contact the reporter on this story: Jason McLure in Addis Ababa via Johannesburg on pmrichardson@bloomberg.net.

Last Updated: November 20, 2009 08:39 EST

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