FlightCom — Edition 108 — September 2017

FlightCom Magazine 41

there is a vacuum in Central Africa, where
we are still looking to establish a partnership.

Royal Air Moroc formed a joined
venture with Senegal Airlines but it
didn’t last. Similarly, in the ‘90s SAA
formed an alliance with Ghana – it
didn’t last. SAA formed an alliance
with Nigeria – it didn’t last. Why do
you think these other ventures didn’t
work, while yours are?
The problem stems from the agreements
that were made from the start. We initially
started in West Africa with Ghana, but when
we did due diligence, we realised that our
plans weren’t aligned. The airline must be
run on a purely commercial basis. If, from
the start, the government is willing not to
intervene in the airline operations, not to get
involved in employment processes, not to
affect your schedules, routes and so on, then
there is an opportunity to form a partnership.
Establishment of a clear road map and vision

that is agreed upon at the start is imperative,

and that vision and agreement must be

honoured.

Furthermore, both parties must

acknowledge that operating an airline is

a marginal business and building a route

network and profit takes time. For example,

our China routes are now the backbone

of Ethiopian Airlines. When we started

operating those routes, they were loss-

making. It’s been the same with our routes to

West Africa, such as to Dakar and Bamako.

Those routes required development. For the

time being, they may be a cost, but they will

yield a profit if there is appropriate planning

and a clear road map and vision from the

start.

If there is a problem from the start, the

airline will be disappointed.

Ethiopian Airlines has seen rapid

growth. When other airlines in Africa

have expanded very quickly, they have

faced problems. What safeguards

does Ethiopian Airlines have in place

to prevent it experiencing a similar

fate?

As I have said, it requires having the

right road map and sticking to it, as well

as having strong corporate governance –

which is a challenge in Africa. In the case

of state-owned carriers, that comes back to

government agreeing to leave day-to-day

operations to the airline.

BELOW: Average age of Ethiopian's

fleet is just five years.

OPPOSITE PAGE: Ethiopian Airlines is well-

positioned to link the East and West.

Konstantin von Wedelstaedt