Ethiopian CEO Hits Out At Price Gouging In Ailing Aviation Spare Parts Supply Chain

At least three aircrafts grounded for lack of parts

The CEO of the Ethiopian Airlines Group says a shortage of spare parts for aircraft maintenance and “unethical business practices” in the supply chain have forced the flag carrier to ground part of its fleet.

“I have to admit we are suffering from a shortage of spare parts. It’s created a great burden on all airlines, including Ethiopian Airlines,” said CEO Mesfin Tassew during a three-day aviation trade show in Addis Ababa this week. MRO Africa 2024 saw attendants from all over the globe.

Mesfin revealed the airline had grounded some of its aircraft because of spare parts shortages during a question and answer session. The CEO told local media last month that at least three Ethiopian Airlines jets are grounded while the carrier awaits the delivery of engine parts.

The unavailability of parts, delays in delivery, and price gouging are among the problems facing the airline, according to Mesfin.

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“We don’t get the spare parts when we request them, so we want our suppliers to work with their supply chain aggressively to find innovative solutions and improve their parts delivery,” Mesfin said on Wednesday. “Whenever we order parts, we expect our suppliers to ship them out in the shortest possible time.”

The CEO defended his claims that some of the carrier’s suppliers were overcharging for their goods.

“I have to say that some suppliers would like to take advantage of the shortage to harvest undeservedly high prices,” he said. “Parts sometimes cost three times more than the usual prices. It is an unethical business practice. Prices are increasing because of global inflation and we accept that, but it has to be reasonable,” said Mesfin.

Ethiopian operates a fleet of close to 150 modern jets from Boeing, Airbus, and Bombardier Aviation. Last month, it struck a USD 11 billion deal that could see the carrier acquire nearly two dozen B777-9 aircraft from Boeing over the coming decade.