shareholdings in airlines has proved equally
important.
In September 2010, the airline was officially
invited to join the Star Alliance after signing
a codeshare agreement with Lufthansa in- The same year, it was announced
Ethiopian Airlines had obtained a 40% stake
in Lomé-based (Togo) ASKY airlines. By
2015, ASKY operated a eet of eight aircraft
- three 737-700s and ve Q400s – seven
of which are owned by Ethiopian Airlines. A
contract between the latter and ASKY covers
marketing, operations, maintenance, training,
nancing and management assistance.
In July 2013, Ethiopian Airlines took a
49% share in the newly created Malawian
Airlines. A media statement from the former,
said “this new agreement is a model for the
type of African co-operation that is needed in
the 21st century. It is a win-win partnership
aimed at enabling the success of African
aviation in a capital-intensive, skill-driven and
highly competitive industry.” In February 2014,
Malawian Airlines received a Boeing 737-800
from Ethiopian Airlines, a Q400 had also
previously been transferred.
In January 2018, it was announced
Ethiopian Airlines had nalised a strategic
partnership with the Zambian Government
on the re-launch of Zambia Airways, taking
a 45% stake in the airline. Following that, an
agreement related to technical assistance
was signed with Guinea Airlines. Ethiopian
Airlines has made no secret about its
intentions to start up regional divisions in
Chad and the Democratic Republic of Congo
(DRC). These would involve new local
carriers receiving assistance from Ethiopian
Airlines. To date the plans for Chad and the
DRC have yet to come to fruition.
A series of codeshare agreements has
also enabled Ethiopian Airlines to expand
its global footprint. In December 2010,
a deal was signed with Air China which
strengthened Ethiopia’s network between
Addis Ababa (and the rest of Africa) and
several Asian countries. As with all Asian
destinations, Ethiopian Airlines new routes
and alliances are targeted at facilitating trade
with the Asian nations (which are eager to
obtain raw materials) from Africa.
In 2013, agreements with United Airlines,
ANA and Austrian Airlines were concluded
and in the next year another was signed with
TAP Air Portugal. In 2015, the codeshare
with Air India was expanded to include
African points on Ethiopian Airlines’ network
across the continent. Then in March 2017, a
codeshare between Ethiopian Airlines and
Air Namibia came into effect, followed a
month later by one with Air Europa.RESULTS
Annual reports from the airline show the
carrier more than quadrupled its passenger
numbers between 2005 and 2015, rising
from 1.76 million to 7.6 million. By the
following year, revenues had reached
$261.9m compared with $150.9m the year
before. All of this was possible despite the
challenging operating environment caused
by slower global economic growth, weaker
performance of Africa’s major economies
and an ebola health crisis that scared away
tourists from African destinations.
The carrier’s success was boosted
thanks to its high media pro le, a good
reputation with passengers, strategic
partnerships elsewhere in Africa, more and
reliable services and eet modernisation.
The airline was exposed to high currency uctuations leaving more than $220m of its
funds stuck in several African countries that
were experiencing foreign exchange market
troubles. Repatriating money held in Nigeria,
Egypt, Angola and Sudan as a result of the
oil price drop was also a problem. Ethiopian
Airlines booked a currency loss of $18.1m
as a result of continuous devaluation in
many African countries and the associated
difficulties of getting the funds back.
Looking back to its early days in 1946
and all the – mainly political – problems
Ethiopian Airlines had to overcome, few
would have imagined that the airline would
become the African aviation powerhouse
it is today. To support this development,
the Ethiopian Government reorganised the
airline as a fully state-owned aviation holding
group in July 2017. The aim was to maximise
efficiency, enhance customer service and
ease long-term planning. The new holding
consists of the Ethiopian Airports Enterprise,
which runs Addis Ababa Bole under the
umbrella of the whole group; Ethiopian
Airlines (passenger airline), Ethiopian Cargo
Airlines, Ethiopian Aviation Academy, as
well as catering, MRO and hotel and tourism
services.
The carrier has announced plans to build
an airport city near the town of Bishoftu
on the outskirts of Addis Ababa that could
accommodate 80 million passengers
annually. The location is at a lower altitude
than Addis Ababa’s Bole airport – 1,900m
(6,234ft) above sea level against 2,400m
(8,874ft) – making it more favourable for
take-offs.
Vision 2025 and the drive for expansion
has put Ethiopian on course to take more
market share in Africa and become one of
the continent’s leading airline groups.52 Aviation News incorporating Jets December 2018
Boeing 777-200LRs, -300ERs and
freighters are in service with the carrier,
which operates Africa’s biggest eet of
this twin-jet airliner. BoeingBelow: Nine Airbus A350-900s are currently in service with the airline. Airbus