ADDIS ABABA – African flying carriers could share the success Ethiopian Airlines has been registering in sustaining competitiveness and profitability in the continent’s volatile aviation business amidst the presence of global carriers, Ethiopian former CEO said.
Approached by The Ethiopia Herald in the 5th African Aviation Summit held here last week, the former CEO Girma Wake stated that African airliners have only 20 percent share in connecting the continent with the rest of the world and the market is largely dominated by affluent carriers such as Air France, Fly Emirates, Qatar Airways and others.
“Local carriers in Africa, with the exception of Ethiopian Airlines and a few airliners, are bankrupted and unable to compete in continental and global levels,” he said, adding that Ethiopian meticulous leadership and the Group’s huge investment in technological modernization and professionalism help it to become the most profitable airline in the continent.
Girma noted that the Ethiopian Airlines has been playing an immense role in strengthening intra-Africa trade as well as the continent’s trade relations with the rest of the world. The direct flights to and from different African cities are proving successful in advancing the trade and investment as well as people to people relations in the continent.
The former CEO stated that the Airline has also been serving as a bridge between Africa and the rest of the world including its indispensable role in accelerating the realization of Agenda 2063, which envisioned to create a continent that all countries are effectively and efficiently connected by air transport.
Girma, who have extensive and reputable experience in the aviation industry, claimed that African governments’ huge and ‘unjustified’ tax has made air transport the most expensive mode of communication in the continent and unaffordable for the great majority of the society. “Fellow Africans could follow the suit of the Ethiopian government that put reasonable tax on Ethiopian thereby enabling the flag carrier to offer world-class service in most reasonable price and remain competitive.”
Taking into account the pivotal role capable cargo service could play in attracting anchor companies, the Ethiopian Airlines should invest more in the cargo component that would in turn give an impetus for the leading role it has been enjoying in Africa’s aviation business, he remarked.
The International Air Transport Association (IATA) 2018 report which was launched in the Summit, indicated that the air transport industry, including airlines and its supply chain, are estimated to support 1.54 billion USD to Ethiopia’s GDP.
Spending by foreign tourists supports a further 2.61 billion USD of the country’s GDP, totaling to 4.15 billion USD. In total, 5.7 percent of Ethiopia’s GDP is supported by inputs to the air transport sector and foreign tourists arriving by air, according to the report.
The Ethiopian Herald, March 10/2020
BY BILAL DERSO
