May 18, 2005
No. 19/05 

United States, Ethiopia Sign Open Skies Aviation Agreement
Agreement Removes Air Service Barriers

Addis Ababa (U.S. Embassy) – The United States and Ethiopia signed an Open Skies aviation agreement on May 17, 2005 in Washington, DC.   The Open Skies agreement will permit U.S. and Ethiopian airlines to operate air services between the two countries without restriction, allowing airlines to make commercial decisions with minimal government intervention.

The Open Skies agreement provides for open routes, capacity, frequencies, designations, and pricing, as well as opportunities for cooperative marketing arrangements, including bilateral code sharing with domestic carriers.  The agreement will allow an unlimited number of U.S. carriers to serve an unlimited number of points in Ethiopia - and will do the same for Ethiopian carriers into the United States.  It also will allow all-cargo carriers to operate in either country without directly connecting to their homeland.

Speaking about the agreement, U.S. Ambassador to Ethiopia Aurelia E. Brazeal said, “Establishing Open Skies as the basis of U.S.-Ethiopian aviation relations is an important step toward strengthening trade, investment, tourism, and cultural exchanges between our two nations.   This agreement will enhance our already strong commercial ties in the air transportation sector and provide direct benefits to our economies and citizens.  Ethiopian Airlines’ decision to acquire Boeing’s state-of-the-art 787 – the first African air carrier to do so – is just one example of the strength of our bilateral commercial relationship and of our shared commitment to modernizing Ethiopia’s transportation sector.”

 In 2004, U.S.-Ethiopian bilateral trade totaled approximately $500 million.  Ethiopian exports to the United States grow by 35% last year.  Aircraft and related parts represent the single largest U.S. export product to Ethiopia.  Bilateral trade is expected to continue to increase in 2005.

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