GE banks on Ethiopian and KQ in African market plan

General Electric Aviation is positioning itself to tap into the rising demand for aircraft engines in Africa, especially with Kenya Airways and Ethiopian Airlines rolling out major expansion plans.

The aviation company has invested in technical assistance at KQ and Ethiopian Airlines.

“Africa has a huge potential with many opportunities as the sector grows,” said GE Aviation’s general manager for Middle East and Africa Isam Moursy.

“KQ is a fast-growing airline and is investing in the latest technology. We are enhancing skills and training to build capacity on the ground,” he said in an interview.

He was in the country during the delivery of KQ’s first Dreamliner powered by the GEnx-1B engine.

GE powers 25 aircraft in KQ’s fleet of 44, including all 17 Embraers. It also powers 16 aircraft in the Ethiopian B777 family, including six freighters.

In April 2012, KQ signed an agreement for 19 engines with the US firm, valued at Sh33 billion ($380 million) for its nine Dreamliner’s.

The aviation company, a subsidiary of US conglomerate General Electric whose Africa’s headquarters is in Nairobi, has service agreements and technical teams stationed at both KQ and Ethiopian to manage the engines and train local talent. Africa continues to be a major growth opportunity for GE Aviation.

Among other clients are Rwandair, Air Mauritius and South African Airlines.

GE, one of the world’s largest makers of jet engines and financier of aircraft purchases, is closely watching the regional aviation sector that is tipped to grow, mainly powered by robust economic growth and an expanding consumer market driving business and leisure travel.

Increased trade between Asia and Africa is also playing a major role.

Complementing GE Aviation work in the region is GE Capital Aviation Services Ltd (GECAS) that in October 2013 announced it would open its third Africa office in Kenya targeting regional airlines.

It has offices in South Africa and Ghana. GECAS is the US conglomerate’s aircraft leasing and financing arm.

KQ and Ethiopian have been aggressively positioning themselves to move passengers between Africa and the East.

The two airlines have leased Boeings 777-300, ER, from GECAS. KQ expects four of the aircraft with the first having been delivered in November last year.