State-owned Ethiopian Airlines said on Friday it signed an agreement with Boeing to acquire five Boeing 787 jets with an option for five more in a deal valued in total at USD$1.3 billion.

General Manager Girma Wako told a news conference the first two aircraft will arrive in Addis Ababa in 2008.

"Valued at USD$1.3 billion, the agreement involves five firm orders and purchase rights for five more, making it a huge investment and an unmistakable sign of the airline's commitment to be a leader in African aviation," Girma said.

Ethiopian Airlines operates an all-Boeing fleet of 737 and 767 aircraft and flies to regional and international routes in Asia, Europe and North America. Analysts say it is one of Africa's few strong carriers, along with Kenya Airways, Air Mauritius, South African Airways, Royal Air Maroc and Tunisair.