BY SRUTI KAFLE
The carrier has a decades-long heritage.
SUMMARY
- Ethiopian Airlines’ success is attributed to government support and strategic reorganization efforts.
- Effective management by a competent team has been crucial to the airline’s resilience and growth.
- The firm’s strategic vision and geographical advantage contribute to its status as Africa’s top airline.
Ethiopian Airlines, Africa’s largest aviation firm, was established on 21 December 1945. Executing its first operations on 8 April 1946, the airline associated itself with the global network, expanding its services and currently serves more than 150 destinations around the world. The firm currently has a fleet of 135 aircraft (according to planespotters.net), with the average age of an aircraft being 8.3 years. This flag carrier of Ethiopia is one of the largest airlines in terms of the number of countries served.
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Ethiopian Airlines has achieved many African firsts throughout its history.
Despite the significant challenges it has faced after a string of a few unfortunate and devastating accidents, Ethiopian Airlines has not only persevered but also grown faster than many of Africa’s top airlines combined. This remarkable resilience, coupled with its 74 years of successful operations, is a testament to the airline’s strength and determination. But how did it achieve such success?
Unconditional Government Support
Initially, Ethiopia’s government organized a group of several different companies. These included:
- The Ethiopian Airports Enterprise (EAE)
- Passenger Airline company
- Cargo Airline and Logistics Company
- Ethiopian Aviation Academy
- Ethiopian In-flight Catering Services
- Ethiopian MRO Services
- Ethiopian Hotel and Tourism Services.
The Ethiopian government reorganized the airline as a fully owned aviation holding group in July 2017 to maximize efficiency, enhance customer service to a global standard, and ease long-term planning. Ethiopian MRO Services, the largest operation serving Africa and the Mid-Eastern region, provides the airline’s maintenance, overhaul, and repair services. Also, the government is expanding the Cargo and Logistics division to increase annual capacity to 1.5 million tons.
Photo: eka.viation | Shutterstock
These aids, which are unusual in Africa, have been carried out by the government of Ethiopia to Ethiopian Airlines. This is one of the reasons why Ethiopian Airlines conveniently leaves other airlines behind in terms of government support, and its prosperous success makes sense.
Effective Management
The airline’s management plays a vital role in its succession with competence and strategic decisions.
The Ethiopian Group CEO, Ato Tewolde Gebremariam, said in an interview with the BBC:
“The airline is fully owned by the government of Ethiopia but fully managed by professional aviation experts, myself and my colleagues. We grew up in the airline industry, started as a checking agent at the counter in the airport, and spent 32 years in the same industry. The average service of our leaders is 25 years, so quite significant expertise and experience, but at the same time, young management. So this is also a competitive advantage. So, we have very strong leadership and very strong cost management. Frugality is very strong at Ethiopian Airlines.”
Photo: Boeing
According to Gebremariam, several other reasons behind the carrier’s success exist. These include:
- The strength of the management team
- Exceptional effectiveness of people involved with the airline
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A clear, well-thought-out vision and an execution that backs it up
Ethiopian Airlines firm achieved its Vision 2025 targets in 2018 and is working on a more ambitious strategic road map called Vision 2035. Ethiopian Airlines plans to:
- Double the fleet size and increase the number of international destinations it serves to more than 200.
- Increase its passenger traffic from 14 million in 2022 to 65 million in 2035.
- Generate 25 billion USD in revenue by the end of the road map, compared to $6.1 billion in fiscal year 2022.
Photo: Ethiopian Airlines
In 2020, the airline also revealed its plans in 2020 to construct a new mega-airport, a testament to the carrier’s forward-thinking approach. This 6 billion dollar project, which can handle 100 million passengers a year, was envisioned as a project capable of alleviating pressure on the Addis Ababa Bole International Airport as passenger travel continues to surge. If the airline plans to increase the number of passengers to 65 million in 2035, the country will need many airports like this that can handle hundreds of thousands of passengers.
Geographical Advantage
Ethiopian Airlines enjoys some geographical advantages that contribute to its success. Strategically positioned in the East-West and North-South hemispheres, the proximity allows this firm to conveniently connect with various areas like Europe, the Middle East, both American continents, and the Far West. The airline emphasizes connecting Asia, the Middle East, Europe, and North America with different parts of Africa. James Pearson, a PhD in airline strategy, mentioned that the carrier serving the following places helps it achieve the heights that other African carriers have not been able to do:
- Major cities in East and Southern Africa with North, Central, and West Africa
- North and Central Africa to East, West, and Southern Africa
- São Paulo, Brazil, to Asia generally and China in particular
Pearson further commented that the airline operated international flights in different directions. This allowed the carrier to improve its expansion capabilities.
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The bottom line
Ethiopian Airlines’ success story consists of multiple significant factors, such as government support, efficient management, a solid vision regarding future operations with necessary implementations, and strategic geographical placement. Without the commingling of so many factors, it would have been difficult for Ethiopian Airlines to become an emblem of African aviation like it is today.