Why is Ethiopian airlines very succesful The aviation world is one of the most intriguing
industries and a highly lucrative sector of the global economy.
The system as a whole is a well-thought-out system that requires a high level of critical
thinking and execution.
Flight operators are constantly seeking for unique ways to make their particular service
capture the eye of the consumer in the battle for airlines to stand out from the crowd;
this may be accomplished by delivering something tailored to every type of passenger.
Even though it is a major industry, it is not without defects, but Ethiopian Airlines
is one of the few airlines that has consistently delivered.
Ethiopian Airlines has grown over the years to become Africa's largest airline, with 19
million total seats in 2019.
In 2018, the carrier was named the leading airline operating in Sub-Saharan Africa by
passenger capacity, surpassing Emirates.
It is also Africa's most profitable airline.
It's a remarkable achievement for the airline, considering many other prominent brands on
the continent, including South African Airways and Kenya Airlines, are losing money for various
reasons.
What's more impressive is that, despite its financial success, Ethiopian Airlines is pursuing
a cost-cutting program that aims to save between 10% and 20% per year.
It has risen faster than the rest of Africa's top ten airlines combined in recent years
as Africa's largest airline.
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Ethiopian Airlines, founded 75 years ago in 1945, is wholly owned by the country's government
and began operations in 1946.
It began international flights in 1951 and is now Africa's largest airline by passenger
carried, destinations served, fleet size, and revenue.
Additionally, it is the world's fourth largest airline in terms of destinations served.
In fact, Ethiopian Airlines achieved its Vision 2025 targets in 2018 and is now working toward
realising its Vision 2035.
Apart from these accomplishments, what characteristics of this airline have propelled it to such
heights?
Of course, considerable effort was expended behind the scenes, but achieving such rapid
success without a recipe for success appears impossible.
Ethiopian Airlines' success can be ascribed to two factors.
Firstly, It is the airline’s clarity of vision and independence from the government
in day-to-day operations.
Although Ethiopia's government owns the entire airline, it is allowed to operate commercially.
This implies they've been offering services to clients regardless of government rules
or levies that could stifle their expansion, even during times of major domestic unrest.
This type of structure has allowed the airline to thrive without relying on government assistance.
Furthermore, if other parties start interfering with an existing well-run project, things
could turn unpleasant.
The Ethiopian government has gained international recognition for maintaining such a well-managed
airline as a result of this choice.
The airline's management has consistently been excellent over the years, whereas many
African state-owned airlines are badly managed, with nepotism in personnel recruiting and
commercial choices based on political considerations.
All of the background noise is drowned out by Ethiopian Airlines.
They continue to be a professionally run and well-managed institution.
It was described as a capitalist win in Marxist Ethiopia by the Christian Science Monitor
in 1988.
For example, despite the Ethiopian people's revolutionary Democratic front's violent overthrow
of the communist government in 1991, the airline profited the following fiscal year.
Moreover, despite the difficulties created by the Eritrean-Ethiopian war, the airline
ran smoothly and profitably during the fiscal year.
Despite such national difficulties and obstacles, Ethiopian Airlines stays steadfast.
They stayed focused and are now reaping the rewards of their hard work
and perseverance.
Between 2011 and 2019, Ethiopian Airlines' growth increased, more than doubling in size.
The airline added approximately 15 million seats during this era of expansion, which
is more than 5 million more than the next five airlines on the list of Africa's top
10 airlines.
By observing this massive increase, it is evident that the airlines have prioritized
service expansion.
When contrasted to South African Airways, it is evident that this airline suffered tremendous
obstacles and saw little overall growth, whereas Ethiopian Airlines thrived.
Despite being state-owned, Ethiopian Airlines has operated like a commercial enterprise
on a day-to-day basis, with competent leadership and well-trained workers.
To put things in perspective, we can say that Ethiopian is owned by the government, but
its operations are run like any other corporation.
Even with the present epidemic wreaking havoc on the airline industry, Ethiopian Airlines
has been tremendously effective in increasing its position.
As a result of the pandemic, airlines have been forced to lay off employees.
One example is South African Airways, which reduced its workforce from 5000 to 1000 employees,
and Kenya Airways, which has been struggling with its balance sheet and is laying off staff
in stages, with approximately 700 of the 1,500 employees receiving redundancy letters.
The situation with Ethiopian Airlines is somewhat different.
The airline denied earlier this year that it was putting employees on mandatory leave
in reaction to the destruction caused by the coronavirus outbreak.
Airlines employees were supposed to take a three-month unpaid leave of absence until
the situation calmed down.
The airline, on the other hand, verified that it has weathered the storm without the need
for government bailouts or pay cuts.
This raises the question of what the airline is doing right and other African airlines
aren't.
We'll look at some of the strategies that have contributed to the airline's success
and expansion in today's video.
While other airlines were forced to curtail or discontinue operations, Ethiopian Airlines
continued exporting agricultural supplies and equipment to numerous countries.
With the rest of the globe on lockdown, medical and food supplies became critical.
The airline made strategic adjustments and took advantage of the rapidly increasing need
for medical supply transportation.
Ethiopian Airlines was able to avert financial catastrophe by switching to cargo transport,
since the airline was able to keep half of its earnings while 90 percent of its passenger
fleet was grounded.
When the pandemic hit in late 2018, Ethiopian Airlines had 26.8 million seats in its fleet.
This incredible number is more than double that of Egyptair, the continent's second-largest
carrier.
Several reasons contribute to the airline's success, despite the fact that it has not
been privatized and is completely owned by the government.
According to sources, during the epidemic, Ethiopian Airlines rapidly increased its cargo
market footprint, presently operating more than 70 cargo routes, up from 10 at the start
of 2020.
The airline has established itself as an important transporter
of medical supplies in Africa, and cargo demand may be what allows it to make up for lost
passenger revenue.
Ethiopian Airlines has a diverse fleet of 128 aircraft and assets, which comprises a
wide spectrum of aircraft.
Apart from that, it has placed 41 further orders for B737 Maxs, A350 900s, B787 900s,
and Dash-8 400s.
Dash-8 and 400 aircraft are frequently used on domestic flights.
Other airline hubs are increasingly using them, exhibiting the convenience they give.
The airline's operations will benefit from the new aircraft fleet, but there will be
little adjustments.
The complexity of their fleet changes dramatically depending on the level of demand on their
routes.
Ethiopian Airlines is a well-coordinated hub carrier that takes advantage of its regional
location to serve developing and growing markets.
Its main purpose is to connect major parts of Africa to the Middle East, Asia, Europe,
and North America.
As a result, there are two natural waves of international flights per day, each with drastically
different flight paths.
Ethiopia's geographical position is the second factor contributing to Ethiopian Airlines'
success.
Ethiopia's geographic location has also aided in the country's development as an aviation
hub connecting Africa, the Middle East, Asia, and Europe.
Addis Ababa has recently developed into a hub, allowing it to attract and move a greater
volume of traffic, mainly from Asia to the American continents.
In addition, Addis Ababa is building Africa's largest airport.
Ethiopian Airlines is investing an estimated $5 billion in the port, which has the potential
to become Africa's largest airport, capable of processing more people than Johannesburg,
South Africa's current biggest hub.
The move comes as its existing base, Addis Ababa Bole International Airport, struggles
to keep up with the rapidly expanding capacity.
Bole handled fewer than a million travelers every year less than a decade ago.
However, Ehtiopian's success has aided in the increase in passenger traffic at the airport.
In 2014, it increased to 7 million people.
According to many reports, passenger numbers are predicted to continue to rise at a rate
of roughly 18 percent every year.
The new airport will be 35 square kilometers in size.
The airport is expected to be built in Bishoftu, a hamlet 39 kilometers southeast of Addis
Ababa, and will have a capacity of 100 million passengers per year, according to reports.
The new airport's construction was slated to begin in the second half of 2020.
However, that decision was made before the worldwide aviation sector was hit by the coronavirus
pandemic.
The carrier has successfully completed a new passenger terminal at its hub Addis Ababa
Bole International Airport.
The new terminal, developed by Ethiopian, has check-in hall with 60 check-in counters,
30 self-check-in kiosks, 10 self-bag drop/SBD/, 16 immigration counters with more e-gate provisions,
16 central security screening areas for departing passengers are the new faces of the airport.
Also, three new contact gates have been developed for wide-body aircraft and 10 new remote contact
gates with people mover – travellator, escalator, and panoramic lifts.
The new terminal has 32 arrival immigration counters with eight egate provisions.
With regard to the new terminal, Mr. Tewolde GebreMariam, Group CEO of Ethiopian Airlines
the Addis Ababa Bole International Airport has overtaken Dubai to become the largest
gateway to Africa last year, and the new terminal will play a key role in cementing that position
While Ethiopian Airlines' success is mostly due to their efforts, there aren't enough
qualified competitors to give them with the required competition.
Some of the elements that have helped to Ethiopian Airlines' ever-expanding and successful concept
include managing their aviation academy, catering unit, and providing maintenance and training
for pilots, cabin crew, and technical employees.
Ethiopian Airlines is not just another success story; it is a one-of-a-kind example of how
a state-owned enterprise should be run in the modern day.
The airline has shown the proper mix of dedication, business structure, and government assistance,
all while maintaining a high level of efficiency.
Ethiopian Airlines' enormous success can be attributed to the Ethiopian government's strong
defense of its own airline.
Obtaining landing privileges at Addis Ababa is exceedingly tough for a foreign airline.
Other carriers flying to other domestic areas within the country are similarly highly regulated
and limited by the government.
It's worth noting that Ethiopian Airlines has made significant investments in modernizing
its fleet, which is now the continent's youngest.
Other airlines in the region include Egypt Air, Air Côte d'Ivoire, and Rwandair, among
others, but they are not yet at the level where they can deliver like Ethiopian Airlines.
Ethiopian Airlines, for their part, takes a strict stance in order to keep competitors
at bay.
Because they have the highest level of customer satisfaction, no other airline can enter their
market.
With the rate at which Ethiopian Airlines is expanding, it will not be long before it
is ranked among the best airlines in the world, not just in Africa.
They've gotten this far thanks to a lot of strategic planning and airline management.
Let's see how far this fantastic airline can go in the coming years.
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