Boeing and Ethiopian Airlines Sign 777 Component Services Agreement

JOHANNESBURG, April 5, 2011 /PRNewswire/ -- Boeing (NYSE: BA) and Ethiopian Airlines today announced an agreement for the Ethiopian flag carrier to participate in the 777 Component Services Program (CSP). The announcement was made during the annual MRO Africa event.

CSP is a parts-provisioning program that significantly reduces the airline's up-front investment in spare parts and offers a quick and reliable supply of critical parts from a pool shared by participating 777 operators.

Ethiopian Airlines is the 13th airline in the 777 Component Services Program, which is offered jointly by Boeing and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M).

Ethiopian's agreement for the 777 CSP initially covers three 777-200LRs (longer range) jetliners, all delivered since November 2010. Two additional deliveries are scheduled for this year, one in late April and the second in the third quarter. The airplanes were ordered in 2009.

"The extremely long range of the 777-200LR necessitates a dedicated inventory pool of selected high-value, dispatch-critical components," said Tewolde Gebremariam, CEO, Ethiopian Airlines. "The CSP offers Ethiopian Airlines significant efficiencies and savings in managing our supply chain by reducing our investment in costly parts inventories."

CSP allows airlines to outsource the cost and logistics associated with keeping important parts on hand, while significantly reducing inventory. Under the program, Boeing and Air France KLM E&M commit to providing parts covered in the agreement within 24 hours of a request. The inventory required to support an airplane type can cost millions of dollars.

"Ethiopian Airlines has become a key player in the region by providing superior customer service and on-time operations," said Dale Wilkinson, vice president of Material Services for Boeing Commercial Aviation Services. "The reduced costs and the efficient operation of the Component Services Program are especially beneficial to an airline with a relatively new 777 operation."

"We are very pleased that Ethiopian Airlines has joined the Boeing and AFI KLM E&M 777 CSP. Since it's been launched, this program demonstrated its relevance to 777 customer expectations," said Rob Pruim vice president of Sales International of AFI KLM E&M. Boeing Commercial Aviation Services supports more than 12,100 Boeing commercial jetliners (passenger and freighter airplanes) with value-driven lifecycle solutions that deliver the fundamentals of aviation support — training, spare parts, diagnostic tools, maintenance documents and information, technical advice and modification programs.

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