Ethiopian Airlines Group, in collaboration with the African Development Bank (AfDB), has embarked on an ambitious project to construct the Bishoftu International Airport near Addis Ababa, Ethiopia.

This $7.8 billion initiative aims to transform Ethiopia’s aviation landscape by significantly increasing passenger capacity and positioning the nation as a premier African aviation hub.

The Bishoftu International Airport is set to be located approximately 40 kilometers southeast of Addis Ababa, near the town of Bishoftu.

Upon completion, the airport is expected to handle over 60 million passengers annually by 2040, a substantial increase from the current capacity of 17 million at Bole International Airport.

This expansion is anticipated to alleviate congestion at Bole International Airport and accommodate the growing demand for air travel in the region.

The development of Bishoftu International Airport is poised to deliver significant economic benefits to Ethiopia and the broader African continent. The increased passenger capacity is expected to boost tourism, facilitate trade, and attract foreign investment.

Additionally, the construction and operation phases are projected to create numerous job opportunities across various sectors, including aviation, construction, hospitality, and retail.

Furthermore, the project’s alignment with Ethiopia’s economic reform agenda underscores its potential to contribute to national GDP growth.

The AfDB’s investment of $1.2 billion in Ethiopia highlights the bank’s commitment to supporting transformative infrastructure projects that drive sustainable development and regional integration.

Meanwhile, In a significant move to enhance air connectivity across Africa, the Middle East, and Asia, Etihad Airways and Ethiopian Airlines have established a landmark joint venture (JV).

This strategic partnership, formalized at Ethiopian Airlines’ headquarters in Addis Ababa, encompasses a comprehensive codeshare agreement and the introduction of new direct flights between Abu Dhabi and Addis Ababa.

As part of this collaboration, Ethiopian Airlines will commence flights from Addis Ababa Bole International Airport (ADD) to Abu Dhabi’s Zayed International Airport (AUH) on July 15, 2025.

Subsequently, Etihad Airways will initiate daily flights to Addis Ababa starting October 1, 2025. Pending regulatory approvals, this JV enables both airlines to jointly develop and expand routes between the UAE and Ethiopia, thereby enhancing connectivity across their respective networks.

The partnership aims to provide passengers with seamless access to a broader range of destinations, strengthening links between Africa, the Middle East, and Asia.

Antonoaldo Neves, CEO of Etihad Airways, said, “This Joint Venture is great news for customers of both airlines. The start of flights between the two great cities of Addis Ababa and Abu Dhabi connects our expanding networks, giving our customers seamless access to a growing list of destinations via our extensive hubs.

It also paves the way for deeper discussions on working together across our respective regions on other cooperation, including frequent flyer programmes, training, and cargo.”