Aviation expansion vs economic transaction

The globalization era created an indispensable demand for a booming aviation industry to keep the growth momentum in supplementing the rapid economic growth.

It is also noticeable that more economic growth is tantamount to more people traveling around. Therefore, aviation industry promotes and facilitates business expansion, attraction and generates jobs and income inside and outside the industry. And there should be reliable aviation service providers to grow and attract business.

According to the Geneva based Air Transport Action Group 2017 report, in fact, with a supply of nearly 63 million jobs and 2.7 trillion USD in global GDP, the air transport industry is a driver of the global economy, The role of the aviation sector in a wildly growing economy like that of Ethiopia is undeniable though the major question thus should be: How we should facilitate means for the industry to play its indispensible role in the industry?

Ethiopian Airlines has been one of Africa’s leading aviation industries over the last decade. The airline’s growth is not only mirroring the country’s astonishing economic growth, but also actively contributing to it. For instance, Ethiopia recorded a profit of 148 million USD in 2015, which is more than the profit of all of its African counterparts combined, according to the International Air Transport Association.

Such type of exceptional success is not only the result of Ethiopian’s effort, but also the outcome of the nation’s strategic geographical location and accelerated economic growth. Consequently, this signifies the massive market potential availed for additional service providers.

In order to continue with its leading performance, EAAG has been constructing terminal expansions and an international standard hotel.

The terminal expansion project is the Addis Ababa Bole International Airport passenger terminal expansion whose construction started in November 2014 at a cost of USD 250 million though it escalated to USD 363 million due to several reasons. And the five-star hotel is near its headquarters in Addis Ababa.

The Chinese Construction firm, CCCC, is the contractor while the French Consulting firm ADPI is consultant of the project. The passenger terminal expansion building is designed by CPG, a renowned Singapore airport designing company that EXIM Bank of China financed.
The expansion project comprises of three phases signed under two contracts. The first part is the expansion of the main passenger terminal from east and west side. The main terminal (Terminal II) which was inaugurated in 2003 was designed to serve six million passengers every year.

On the other hand, as a result of the rapid economic growth of the country, currently the terminal is serving about 11 million passengers. This has led the leadership of the Ethiopian Airports to launch the massive expansion project which aims at increasing the capacity of the terminal to 22 million passengers.

The existing terminal has a floor area of 48,000 sq.m. and the expansion project will include the construction of 74,000sq. m. floor area.

As the Expansion Project Lead Engineer, Hailu Lemu, told The Reporter that the east side of the expansion project which is one third of the expansion project has been completed and became operational. Two third of the project, the west side of the terminal is nearing completion.

As to Hailu, 80 percent of the civil work is completed on the west side. “Mechanical, electrical and plumbing work is being completed. The plumbing work includes sanitary, ventilation, and firefighting system.” The floor tiles and painting works are nearing completion. The road network (access road) and parking lot construction has been finalized.

The main terminal has three floors-ground floor, arrival and departure. The expansion project includes the installation of two escalators, eight elevators which can accommodate 208 passengers at a time, Modern Baggage Handling System (BHS) and firefighting system. The expansion project will provide 72 new checking counters and 21 boarding gates. All the systems have been manufactured and installed at the new terminal, indicated on the project performance report.

The expansion project will be finalized by June 2019, though the main terminal (terminal two) expansion will be inaugurated by the end of this month.

The second contract of the expansion project includes the construction of VIP terminal and the expansion of domestic and state terminal whose construction began in September 2017. The foundation and ground floor work has been completed and pillars are being erected.

The VIP terminal will have two levels-on the ground floor where VIPs enter the terminal and will use elevators to go up to the second floor to board their planes. There will be three different access ways for diplomats, senior government officials and heads of states. The terminal, among other things, will have various saloons, press briefing room, conference room, restaurants, and cocktail ballroom. It will have its own parking lot and access road. The site is located at the Old Airport Customs Office.

In the same way, the construction of eight floors five-star hotel, named Ethiopian Skylight, is finalized. The facility has been said to worth 65 million USD. It is on 42,000m2 of land in front of the Millennium Hall at Africa Avenue.

Ethiopian Skylight Hotel has 373 guest rooms out of which 27 are spacious suites. It also has three restaurants. The restaurants are Ethiopian, European and Chinese restaurants. It also has three bars which are lobby, executive (roof top) and Jazz club.

Likewise, it also includes a grand ballroom designed to accommodate 2,000 people that is suitable for conference and wedding parties with five meeting rooms which could provide somewhere to stay for 20 to 30 guests. It has essential role to boost tourism sector, as well.

Furthermore, the hotel has a health center that provides spa, massage and gym services. There is an outdoor swimming pool with a pool bar and mini golf court in the premise. It has a parking lot which can accommodate more than 500 cars, as well.

In the same way, the Ethiopian Airlines has invested over 550 million USD on infrastructure development projects in the past five years excluding the airport expansion project.
More to the point, about 400 people are recruited and trained for the grand opening of the hotel to be inaugurated at the end of this month. It is also expected that the number of employees will be double when it is fully functional.

Having said these, there is no doubt that the aviation expansion has positive and critical impact on accelerating the economic development making Addis Ababa the main gate way to Africa in particular and globe in general. To elaborate, Ethiopian Airlines has 36 weekly flights between China and Africa transporting 3000 to 4000 Chinese travelers daily.
(Sources: EAAG Annual Reports and Project plans.)

Herald January 11/2019

BY DIRRIBA TESHOME

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