ETHIOPIA: Ethiopian Airlines Starts New Route To Istanbul From April 1 2019

Ethiopian Airlines has launched a new route to Turkey's Istanbul with flights set to depart from April 1, 2019.

Istanbul will be the airlines' 120th international destination and the direct service from Addis Ababa will operate three times per week.

The route will be serviced by a Boeing 737-800, the predecessor to the Boeing 737 Max 8, which has been grounded since the Ethiopian crash on March 10.

The announcement was made on Twitter and in a press release and comes 10 days after the fatal crash in the Ethiopian capital.

Interestingly, the airline’s Facebook page does not mention the new route – the most recent post there refers to an update on the grounding of the Boeing 737 Max that was published on March 14.

Widening its wings once again, Ethiopian will start a direct flight to Istanbul , to one of the world’s greatest cites with an amazing culture and architectural heritage, effective 01 April 2019.

Ethiopian Airlines Group CEO said: It gives us great pleasure to launch flights to Istanbul, connecting Europe’s largest city to the over 60 African destinations we serve, through our hub Addis Ababa.

The airline is forging ahead as investigations into the crash that killed 157 people continue.

Travellers and partners have stayed loyal to the airline which, other than having to cancel flights that were set to operate on its Max fleet, has not reported any uptake in cancellation or booking rates since the incident.

Well done.We are proud of you

Social media users tweeted their confidence in the airline after the announcement of the new route. One user called the carrier - The true pride of Africa and another said she was proud of the airline.

Ethiopian Airlines has grown massively in recent years from a fleet of 35 planes in 2007 to 111 in 2019. It now flies to 52 more destinations than it did a decade ago.


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ETHIOPIA: Villagers Narrate What Happened As Ethiopia Airlines Flight Crashed

One villager said he was having breakfast before going to church when he saw a plane falling from the sky.

On that very moment, at 8:44am, a burning Ethiopian Airlines passenger jet appeared in the clear blue skies above the village, plummeting towards the semi-barren hills beyond the village.

He says he heard four large explosions. I have never heard anything that loud he says, whose village lies about 500 metres from the site where flight ET 302 crashed.

I was very scared but I ran to the field to check and I saw a shocking sight, he says, shaking his head in disbelief.

Body parts were everywhere. Some were even burning. There was a massive fire he says.

Ethiopian Airlines, Africa's largest air carrier, said everyone on board the flight was killed. The plane crashed six minutes after taking off from Addis Ababa en route to Nairobi.

More people died in the crash, 149 passengers and eight crew members than those living in Atlaw's village.

The debris from the accident is strewn across a farm that has now become the centre of global attention. Investigators from across the world have descended on Adadi, sifting through the crash site to identify the remains of the victims, who hailed from 35 countries.

The news triggered an outpouring of grief and sadness worldwide, while Ethiopia, which lost nine people in the crash, declared a day of national mourning.

Late on Monday afternoon, a white helicopter kicks up a bowl of dust before disappearing beyond the hills in the distance. At least five excavators are busy at work.

Heavily armed security officers are keeping an eye on the 100 or so spectators gathered near the scene, making sure no one trespasses, as emergency workers comb through the site holding transparent sample bags.

A flock of black and white crows hang in the thin air on the lookout for food.

There are children among the dead because we saw their clothes, says an excavator operator.

What I saw will stay with me, until I die. It is too painful to even describe it, he adds

Two ambulances with their lights flashing leave the site.

Tears trickle down the face of an eye witness as she recalls the event of the crash in her eyes.

Children ran and hid for cover when the plane came down crashing, she says, as a group of other women join her, tears running down their faces.

My son hid underneath the bed. There was a lot of dust, smoke and fire. We are all in shock and very scared.

Earlier in the day, Ethiopian Airlines, China and other countries announced that they would ground the aircraft that was involved in the crash, the Boeing 737 MAX 8, the same type of aircraft that went down in Indonesia some six months ago, killing all 189 people on board.

Following the tragic accident of ET 302/10 March B-737-8-MAX (ET-AVJ), Ethiopian airlines has decided to ground all B-737-8 MAX fleet effective March 10, 2019, until further notice, Ethiopian Airlines said in a statement on Monday.

Although we don't yet know the cause of the accident, we had to decide to ground the particular fleet as extra safety precaution, the Ethiopian Airlines statement adds.

Back in Adadi, Sunday church service seems to have taken on a whole new meaning for its few residents.

I went to church and prayed for their souls. I also thanked God for saving us and our village, says a housewife.

I pray God continues looking after us, the mother-of-six adds.

As the sun sets, and all but the security officers start leaving the crash site, Atlaw hopes outsiders will visit his village in the future for other reasons.

It is sad because all these people came here because of bad news, because of so many deaths, he says.

I hope one day they come because of good news, he says.


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ETHIOPIA: Ethiopian Airlines Boeing 737 Max-8 Crash Left No Survivors

An Ethiopian Airlines Boeing 737 Max-8 crashed shortly after take-off from Addis Ababa, killing all on board.

The airline said 149 passengers and eight crew members were on flight ET302 from the Ethiopian capital to Nairobi in Kenya.

It said 32 Kenyans, 18 Canadians, eight Americans and seven British nationals were among the passengers.

The crash happened at 08:44 local time, six minutes after the months-old Boeing 737 Max-8 took off.

Another plane of the same model was involved in a crash less than five months ago, when a Lion Air flight crashed into the sea near Indonesia with nearly 190 people on board.

The cause of the disaster is not yet clear. However, the pilot had reported difficulties and had asked to return to Addis Ababa, the airline said.

At this stage, we cannot rule out anything, Ethiopian Airlines CEO Tewolde Gebremariam said at Bole International Airport in Addis Ababa.

We cannot also attribute the cause to anything because we will have to comply with the international regulation to wait for the investigation.

Visibility was said to be good but air traffic monitor Flightradar24 reported that the plane's vertical speed was unstable after take-off.

An eyewitness at the scene said there was intense fire as the aircraft hit the ground.

The blast and the fire were so strong that we couldn't get near it, he said. Everything is burnt down.

First word of the crash came when Prime Minister Abiy Ahmed expressed his deepest condolences on Twitter.

Recovery operations were under way near the crash site around the town of Bishoftu, which is 60km (37 miles) south-east of the capital.

The plane was delivered to Ethiopian Airlines on 15 November last year. It underwent a rigorous first check maintenance on 4 February, the airline tweeted.

Mr Gebremariam told the news conference that passengers from more than 30 countries were on board the flight.

He said they included 32 Kenyans, 18 Canadians, nine Ethiopians, eight Italians, eight Chinese, eight Americans, seven Britons, seven French citizens, six Egyptians, five Germans, four Indians and four people from Slovakia.

Slovak MP Anton Hrnko later confirmed via Facebook that his wife and two children were on the plane.

Three Austrians, three Swedes, three Russians, two Moroccans, two Spaniards, two Poles and two Israelis were also on the flight.

There was also one passenger each from Ireland, Nepal, Saudi Arabia, Djibouti, Belgium, Indonesia, Somalia, Norway, Serbia, Togo, Mozambique, Rwanda, Sudan, Uganda and Yemen.

One person held a UN passport, the airline said. It believed some passengers could have been heading to a session of the UN Environment Assembly which begins in Nairobi on Monday.

At least a dozen of the victims were affiliated with the UN, and that this may include freelance translators.

World Food Programme executive director David Beasley said seven members of agency staff had died in the crash.

Among them was engineer Michael Ryan, a father of two, from Cork, Ireland. Taoiseach (Prime Minister) Leo Varadkar said Mr Ryan had been carrying out life-changing work in Africa

One of the Canadian victims was named as Prof Pius Adesanmi, an expert in African studies at Carleton University in Ottawa.

The pilot was named as Senior Captain Yared Getachew who had a commendable performance with more than 8,000 hours in the air, the airline said.

The plane's First Officer Ahmed Nur Mohammod Nur had 200 flight hours, it added.

Ethiopia declared Monday a national day of mourning.

Canadian PM Justin Trudeau said he was deeply saddened to hear of the crash, continued that: We join the international community in mourning the loss of so many lives.

French President Emmanuel Macron expressed solidarity with the people of Ethiopia and Kenya, tweeting: We share their sorrow.

António Guterres, the UN secretary-general, also tweeted about the crash.

African Union Commission chairman Moussa Faki Mahamat expressed utter shock and immense sadness while Kenyan President Uhuru Kenyatta said he was saddened.

Mahboub Maalim, executive secretary of the East African bloc Igad, said the region was in mourning.

I cannot seem to find words comforting enough to the families and friends of those who might have lost their lives in this tragedy, he said in a statement.

The 737 Max-8 aircraft is relatively new to the skies, having only been in commercial use since 2017.

Boeing said it was deeply saddened by the crash and offered to send a team to provide technical assistance.

Following the Lion Air crash last October, investigators said the pilots had appeared to struggle with an automated system designed to keep the plane from stalling, a new feature of the Boeing 737 Max.

The anti-stalling system repeatedly forced the plane's nose down, despite efforts by pilots to correct this, findings suggest.

There is no suggestion that the Ethiopian Airlines jet suffered similar issues on Sunday.

Ethiopian Airlines flies to many destinations in Africa, making it a popular carrier in a continent where many airlines fly only from their home country to destinations outside Africa.

It has a good reputation for safety, although in 2010 one of the company's aeroplanes crashed in the Mediterranean Sea shortly after leaving Beirut.

The incident killed 90 people on board.

The airline's highest fatalities prior to this came in a November 1996 crash during a hijacking on a flight from Addis Ababa to Nairobi.

One of the plane's engines stopped when the fuel ran out and although pilots attempted an emergency water landing, they hit a coral reef in the Indian Ocean and 123 of the 175 people on board were killed.


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UGANDA: Flights To Entebbe Halted After Ethiopia Airlines Plane Boeing 737-800 Overshot The Runway When Landing

All incoming flights to Entebbe airport have been delayed or rerouted to neighbouring airports after an Ethiopian Airlines plane a Boeing 737-800 overshot the runway during landing today morning.

Although they were also delayed for several hours after the 12:41am incident, outbound flights can now take off according to Civil Aviation Authority (CAA) public relations manager Vianney Luggya.

The ET 338 flight from Addis Ababa overshot the runway at 12:41 am today while landing according to statements by both Ethiopian Airlines and CAA. The cause of the incident is not yet known.

Entebbe airport is undergoing an expansion development to meet the increased traffic.

All 139 passengers and crew aboard were safely deplaned and now efforts are underway to tow away the plane from the runway end.

About how long it will take to clear the runway for inbound flights, Luggya says until when the plane has been towed away.

No date or time is known.


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ETHIOPIA: Ethiopian Airlines Expanding Routes In Africa

Ethiopian Airlines is accelerating its strategy of weaving a patchwork of new African routes to soak up traffic on the continent and fly customers towards its more lucrative flights to rapidly expanding Asian markets.

With a long-delayed African “open skies” revolution still mired in red tape, Ethiopian has been snapping up stakes in small carriers around the continent to pre-empt potential rivals and become the dominant pan-African airline.

The carrier is in talks with Democratic Republic of Congo, Congo Republic and Djibouti about either launching airlines or securing landing spots, CEO Tewolde GebreMariam said.

He also said in May the airline was looking to set up carriers in Equatorial Guinea and Guinea through joint ventures.

The task of African integration is not easy, Tewolde said in an interview. The context is the need for air transport. There is huge demand. We are responding to it.

Ethiopian’s push comes as Middle Eastern rivals who expanded heavily in Africa are feeling some pain from overcapacity, while African carriers such as South African Airways and Kenya Airways are on the back foot after losing money for years.

The success or failure of Ethiopian’s plan is being watched by long-haul competitors such as Turkish Airlines and suppliers led by Boeing and, more recently, Airbus.

Ethiopian’s fortunes are also important for Prime Minister Abiy Ahmed’s government, which has said it plans to sell a minority stake in the airline to domestic and foreign investors as part of broad economic reform pledges.

Ethiopian unveiled its 15-year expansion strategy in 2010, and started small. First it helped launch ASKY Airlines in the West African country of Togo and then acquired a 49 percent stake in Malawi’s flag carrier in southern Africa in 2013.

Since May, Ethiopian has announced plans to launch an airline in Mozambique, relaunched Zambia’s flag carrier, established a new airline in Chad to cover West and Central Africa and resumed flights to Somalia after a 41-year hiatus.

The prize is growing fast. Air traffic in Africa is forecast to grow 6 percent a year, twice as quickly as mature markets and faster than any other region over the next two decades.

Ethiopian is hoping to snare a greater share of capacity on flights between cities in Africa, which are already 90-percent controlled by African carriers.

In most cases so far, Ethiopian has taken minority stakes in start-up airlines and tried to implant its management culture, often in nations haunted by costly failures of state carriers.

Tewolde also wants to claw back market share on routes to and from the continent, dominated by Turkish and Gulf carrier Emirates. This year, 61 percent of capacity to or from Africa has been controlled by non-African carriers.

There are big risks.

Ethiopian is spending tens of millions of dollars in some of Africa’s toughest markets and the strategy of buying minority stakes to get a foothold abroad has failed spectacularly for some, such as Abu Dhabi’s Etihad.

Analysts worry accelerated expansion may spread Ethiopian too thinly if traffic doesn’t pick up fast enough at its new hubs in Togo, Malawi and Chad.

The regional hubs are designed partly to channel customers to Ethiopian’s main hub in Addis Ababa and so fill its direct flights to the Middle East and Asia.

Open skies?

There are also concerns that none is in a major African city. Lome is far smaller than west African cities such as Nigeria’s economic capital Lagos, or Abidjan in Ivory Coast, while Chad’s dusty desert capital is even smaller.

You want to build (a hub) in a place where you are going to get local traffic and connecting traffic, said Craig Jenks, president of consultancy Airline/Aircraft Projects Inc

Tewolde said the new airline in Chad would draw in passengers from Cameroon, Central African Republic, Niger, northern Nigeria and Sudan.

Yamlaksira Getachew, a management professor at Loyola Marymount University, warned Zambia’s relaunched flag carrier could steal traffic from Ethiopian’s existing southern African hub in neighbouring Malawi.

Ethiopian has been forced to adopt the piecemeal approach to expansion because full air transport liberalisation has failed to materialise, despite several attempts.

In 1999, 44 African countries signed the Yamoussoukro Decision in Ivory Coast’s capital giving airlines freedom to ferry passengers between two foreign countries.

But the agreement was barely implemented as governments moved to protect domestic carriers.

To try to revive the stalled process, 23 African governments signed another deal this year to forge a single aviation market.

So far, Ethiopian’s plan appears to be working. It says it has clocked average growth of 25 percent a year since 2010 and expects to carry nearly 10.6 million passengers this year, up from 3.7 million eight years ago.

Unlike many African rivals, it is also making money. Net profit rose 2 percent to $233 million in its 2017-18 fiscal year.

It says Western banks are helping to fund plans to boost its fleet of 108 planes, with 66 more on order.

Highlighting the potential riches at stake, Chinese banks are involved too, partly reflecting Beijing’s drive to build a new trade corridor to the Middle East and Africa, bankers said.


Tourism Observer

CHAD: Chadian Airlines To Start Operations October 1st, Supported By Ethiopian Airlines

Ethiopian Airlines has announced a deal in which it takes 49% of the new Chadian Airlines. The Government of Chad will take the remaining 51% of Chadian Airlines.

Chadian Airlines, which will be Chad’s flag carrier, is set to start operations on October 1.

The strategic equity partnership in the launching of the new Chad national carrier is part of our Vision 2025 multiple hub strategy in Africa, said Tewolde Gebremariam, Group CEO of Ethiopian Airlines.

The new Chad national carrier will serve as a strong hub in central Africa availing domestic, regional and eventually international air connectivity to the major destinations in the Middle East, Europe and Asia.

I wish to thank His Excellency President Idriss Deby Itno, the Government of Chad, and the stakeholders in the aviation sector in Chad for their strong support to the project.

Ethiopian Airlines already deals with other African countries as part of its growth plan. Ethiopian has a 49% stake in the national carriers of Malawi and Guinea, a 45% stake in Zambian Airways, and a 40% stake in Asky Airline.

Ethiopian is currently in talks with countries like Mozambique, Djibouti, Equatorial Guinea, the Democratic Republic of the Congo, Nigeria, and Ghana for similar agreements.

Through its Multiple Hubs Strategy, Ethiopian operates hubs in Lomé, Togo with Asky and in Lilongwe, Malawi with Malawian.



Tourism Observer

ZAMBIA: Zambia Airways Relaunch For January 1st, 2019, 3 More Planes Expected October 2018

Government has announced that three planes to be used by Zambia Airways are expected in the Country next month.

Minister of Transport Brian Mushimba says the planes will initially fly into two regional destinations and domestic routes.

Mr. Mushimba has maintained that the inaugural flights are scheduled for January 1st, 2019.

He says after the signing of an Agreement with Ethiopian Airlines the process is now gaining momentum.

Mr. Mushimba said in a telephone interview that the board of directors has also been appointed but did not disclose names.

Mr. Mushimba anticipates that over 5 hundred jobs will be created directly among Zambians.

He further says the airline will improve aviation services in the country as well as market Zambia as a tourist destination.

The planned relaunch of Zambia Airways has been deferred to January 1st 2019.

It was planned that the new Zambia Airways will take to the skies on October 24th this year, on the occasion of Zambia’s 54th independence anniversary.

But it was announced during the signing ceremony of a shareholder agreement between the Industrial Development Corporation and Ethiopian Airlines that the inaugural flight will only take off on January 1st, 2019.

According to the agreement, IDC owns 55 percent of the shares while Ethiopian Airways has 45 percent.

The Airline has an initial startup capital of US$30 million dollars.

IDC Chief Executive officer Mateyo Kaluba said the establishment of the national airline will deepen and strengthen growth in the country’s industrialization.

On the other hand, Ethiopian Airlines Group Executive Officer Tewolde Gebremarian said his firm will work hard to ensure Zambia Airways succeeds.

Zambian Airways was the flag carrier of Zambia, based in Lusaka, Zambia.

Zambian Airways suspended operations on January 10, 2009.

Mines Air Services Limited (MAS) was incorporated in 1948 as a subsidiary of Zambia Consolidated Copper Mines (ZCCM).

As part of the process of privatisation of the mines, MAS was disposed of by the government of Zambia on 28 April 1998.

MAS purchased two new Raytheon Beech 1900D Airliner aircraft from Raytheon Credit Corporation (RCC) in July and August 1998 respectively.

The company has been operating these two aircraft since then, under the trading name of Zambian Airways.

On 10 January 2009, the company announced it was suspending operations citing high fuel costs as the main reason.

Shareholders were not available for comment in order to answer questions about when or if the airline may commence operations again, but according to the Zambian Minister of Communications and Transport, Dora Siliya, 41 passengers had been stranded in Johannesburg as a direct result of the airline suspension of operations.

The Zambian government announced on 9 February 2009, that it intended to sue Zambian Airways in order to recover the money the airline owes various firms. Its debt was noted to be US$29 million.

The unrelated carrier Zambia Airways was the state-owned Zambian flag carrier which went bankrupt in 1994.

Zambian Airways used to serve the following destinations when it operated:

Democratic Republic of the Congo

- Lubumbashi (Lubumbashi International Airport)

South Africa

- Johannesburg (OR Tambo International Airport)

Tanzania

- Dar es Salaam (Julius Nyerere International Airport)

Zambia

- Chipata (Chipata Airport)

- Livingstone (Livingstone Airport)

- Lusaka (Lusaka International Airport) Hub

- Mfuwe (Mfuwe Airport)

- Ndola (Ndola Airport)

- Solwezi (Solwezi Airport)


Tourism Observer

ETHIOPIA: Ethiopian Airlines Wants Nigeria Air

Passenger numbers have exceeded ten million at Ethiopian Airlines for the first time in its history during a year when the carrier added eight new international destinations to its network.

The figures come as the airline is thought to be the front runner to manage start-up Nigeria Air.

Ethiopian Airlines has reported a 21 percent spike in passenger numbers to 10.6 million during its 2017/18 fiscal year, the first time the carrier has broken the ten million milestone.

The airline opened eight new international destinations during the period to Geneva (Switzerland), Chicago (US), Bahrain, Kaduna (Nigeria), Buenos Aires (Argentina), Kisangani and Mbuji-Mayi (Democratic Republic of Congo) and Nosy-Be (Madagascar).

Operating revenue rose 43 percent year-on-year to ET98.1 billion ($3.22bn) in the 12 months to 8 July 2018 and net profit stood at ETB6.8 billion ($250m).

Ethiopian also added 14 new aircraft during the year, becoming the first African carrier to have a fleet of more than 100 aircraft.

This performance is all the more exceptional given the very tough operating and competitive environment in Africa, where jet fuel price, our main cost driver, has soared during the year and is on average 30 percent more expensive in Africa, our home market, than in the rest of the world.

This has put the continent’s carriers at a severe competitive disadvantage, said Tewolde GebreMariam, chief executive of Ethiopian Airlines.

This remarkable result was also achieved in the backdrop of aggressive foreign carriers’ penetration into the African market with the African airline industry collectively forecast to lose money.

Speaking at a press conference, GebreMariam said Ethiopian is the frontrunner in the bidding process for the management of Nigeria Air.

Nigeria Air will begin operations in December 2018, the government’s aviation minister Hadi Sirika revealed during a ceremony at the Farnborough International Airshow in July.

The planned launch comes 15 years after long-standing flag carrier Nigeria Airways ceased operations and almost six years since Air Nigeria took to the skies for the final time.

Sirika said Nigeria has unfortunately not been a serious player in aviation for a long time. We used to be a dominant player, through Nigeria Airways, but sadly not anymore.

He explained that the Nigerian government would not own more than 5 percent of the new carrier or have a say in how it is run.

In addition, Ethiopian Airlines is in the process of helping to revive Zambia’s national carrier, while it plans to acquire a 49 per cent stake in the new Chadian Airlines that is to be launched in October. The carrier is also backing start-up carrier Guinea Airlines.


Tourism Observer

ETHIOPIA: Ethiopian Airlines Heads To Eritrea After Opening The Door Of Peace

Long-time foes Eritrea and Ethiopia opened the door of peace on Tuesday after the first high-level visit from Asmara to Addis Ababa in nearly two decades, raising hopes for an end to one of Africa’s most intractable military stand-offs.

In a highly symbolic move, Ethiopian Prime Minister Abiy Ahmed said Ethiopian Airlines would restart flights to Eritrea for the first time since 1998 when conflict erupted between the two nations over their disputed border, with diplomatic relations broken off ever since.

Tuesday’s visit comes after Abiy said this month he would honour all the terms of a peace deal, suggesting he might be ready to settle the border dispute, a move welcomed by Eritrea.

Today is a day of joy because two identical peoples and two generations have been separated throughout that period. But through struggles, we have opened the door of peace, said Eritrean Foreign Minister Osman Saleh.

Abiy said he hoped the dispute would end with this generation and reiterated his willingness to accept the transfer of territory.

There will be lands swapped between the two countries but that will not matter, there will not be a border between us as our relationship will strengthen, he said at a state dinner with the Eritrean representatives.

For Ethiopians who have longed for heading to Massawa in Eritrea for a stroll, I call on you to be ready as Ethiopian Airlines will start services there soon, he said, without giving further details.

He also told artists to get ready to celebrate the Ethiopian New Year in Eritrea’s Asmara.

The Ethiopian calendar, sets September 11 as the 1st day of the New Year, and large celebratuions are usually held around the country to mark this day, which also signifies the approximate end of the rainy season.

Earlier Olympic athletes, singers, actors and religious leaders joined Abiy at Addis Abiba airport to welcome Saleh and other top officials, who were presented with garlands of flowers.

The flags of both countries fluttered from lampposts in Addis Ababa along with a banner reading Welcome!

Eritrean President Isaias Afwerki had welcomed Ethiopia’s positive messages and decided to send the delegation that included his adviser Yemane Gebreab and his envoy to the African Union.

The relationship between Ethiopia and Eritrea is about more than the border. When we make peace, it will benefit all of east Africa, Ethiopia’s foreign affairs spokesman Meles Alem said at the airport.

The border war killed some 80,000 people and the sides remain at odds over the status of the frontier town of Badme. The border remains militarised.

Abiy was at a rally hit by a grenade that killed two people on Saturday an attack that government affiliated media blamed on opponents of reforms announced since he took office in April, including airline and telecoms privatisations and the rapprochement with Eritrea.

Eritrea and Ethiopia broke off diplomatic relations two decades ago, although Asmara has a permanent delegation in Addis Ababa representing it at the African Union, whose headquarters are in the Ethiopian capital.

No Eritrean representatives have been part of an official visit for talks with the Ethiopian government since at least 1998.


Tourism Observer

ETHIOPIA: Ethiopian Airlines To Commence Direct Flights To Jakarta, Indonesia July 17, 2018

Ethiopian Airlines announced that it will launch thrice weekly flights to Jakarta, Indonesia as of July 17, 2018.

Member of the G-20, Indonesia, is the world’s 4th most populous nation and 10th largest economy in the world.

With this new service, Ethiopian Airlines will service all five of the most populous countries in the world.

Ethiopian Airlines Group CEO, Mr. Tewolde GebreMariam, said:

“We are very happy to launch a direct service to Jakarta, the first direct connection between Africa and Indonesia and the first flights into Jakarta by an African carrier.

Our new service will further cement our growing footprint in Asia and will enable us to remain the carrier of choice for travelers connecting between Africa and Asia.

Indonesia is one of the most populated countries in the world with a fast-growing economy and an emerging manufacturing hub.

In the coming years, African and Indonesian trade, investment and tourism ties are set to grow in an exponential manner and our direct flights will make a significant contribution in the enhancement of Africa-Indonesia cooperation.

Ethiopian Airlines plans to increase our flights to daily very quickly in line with our Vision 2025 strategic roadmap of connecting Africa with the major trading centers of the world thru our fast-expanding global network.



Tourism Observer

IVORY COAST: Air Côte d’Ivoire And Ethiopian Airlines Announce Codeshare Agreement

Ethiopian Airlines and Air Côte d’Ivoire, the national flag carrier of Côte d’Ivoire, have entered into a codeshare agreement effective May 2018.

Under the new codeshare partnership, passengers originating from West African countries, especially from Lagos, Bamako, Cotonou, Accra and Lomé will board Air Côte d’Ivoire flights and enjoy a fast and seamless connection to Newark on-board Ethiopian direct service to Newark via Abidjan.

Tewolde GebreMariam, Group CEO Ethiopian Airlines, said: We are very happy to partner with Air Côte d’Ivoire with a view to connecting passengers from West Africa to our new flights to Newark via Abidjan. I wish to thank the

“We are very happy to partner with Air Côte d’Ivoire with a view to connecting passengers from West Africa to our new flights to Newark via Abidjan.

Ethiopian new Abidjan flights to Newark will be operated in complementarity to our existing Newark service via Lomé, which is being availed together with our strategic partner, ASKY Airlines.

Such partnerships among sisterly African airlines are crucial for African countries to fill the connectivity vacuum in the continent and for African carriers to regain their market share in their home market.

René Decurey, CEO of Air Côte d’Ivoire said:

A few months ago, Abidjan airport was certified to carry out direct links with the USA. It is now time to launch these direct flights and Air Côte d’Ivoire is very happy to carry out the operation in codeshare with Ethiopian Airlines.

This agreement will allow Air Côte d’Ivoire to sell the flights as well. We will, therefore, be able to offer passengers on our network, flights to the USA via Abidjan with a single Air Côte d’Ivoire ticket.

We are convinced that this partnership is the beginning of a long collaboration that will fully benefit our two Airlines and African passengers who used to pass through Europe to travel to the USA.

Ethiopian currently flies to 58 cities in Africa and more than 112 destinations globally.


Tourism Observer

ETHIOPIA: Ethiopian Airlines And The University Of Mississippi Ink Memorandum of Understanding

Ethiopian Airlines and The University of Mississippi signed a Memorandum of Understanding (MoU) to introduce different aviation-related training programs into the existing courses of Ethiopian Aviation Academy (EAA).

The training programs to be introduced include Integrated Marketing Communication (IMC), Aviation Executive EMBA and a four-year engineering degree program aimed at upgrading EAA’s existing two-year Aircraft Maintenance training.

The MOU was signed in April 2018 by Ethiopian Group Chief Executive Officer Mr. Tewolde GebreMariam and Professor Noel E.Wilkin, Provost & Executive Vice Chancellor of The University of Mississippi, at the premises of the University in the presence of dignitaries from the University’s academic community as well as Managing Director of EAA.

Commenting on the signing of the MOU, Ethiopian Group CEO Mr. Tewolde GebreMariam said:

In today’s increasingly competitive air transport business, Airlines need well trained and highly skilled management and employees to compete and succeed in the market.

As part of our Vision 2025 Strategic road map, to enhance and upgrade the trainings given at our Aviation Academy, we are very happy to sign this agreement with the University of Mississippi which will introduce Integrated Marketing Communication (IMC), Aviation Executive EMBA and a four-year engineering degree program.

The MOU we signed with The University of Mississippi will be instrumental in diversifying and upgrading our training programs to meet both the Airlines demand and further fill the aviation skill gap in the African continent.

I would like to extend my deepest gratitude to the management and community of The University of Mississippi and look forward to a successful collaboration ahead.

Professor Noel E.Wilkin, Provost & Executive Vice Chancellor University of Mississippi, on his part said:

I am pleased that international businesses are recognizing the quality of our faculty and the programs that we offer. This partnership will afford us the opportunity to shape the talent and abilities of the airline industry in Africa.

Integrated Marketing Communications is vital for economic development of a nation and for businesses wishing to have more sales.

The IMC degree program at Ole Miss should enhance economic development in Ethiopia and increase business for Ethiopian Airlines, added Will Norton, Dean of the Meek School of Journalism and New Media.

With annual intake capacity of 4000 trainees, EAA is the largest and the most modern aviation academy in Africa recognized as ICAO regional Training Center of Excellence.

Founded in 1848, the University of Mississippi is Mississippi’s flagship university with a long history of producing leaders in public service, academics and business.


Tourism Observer

ETHIOPIA: Ethiopian Airlines To Commence Flights To Barcelona, July 1st

Ethiopian Airlines has finalized preparations to launch new flight services to Barcelona, as of July 01, deploying a Boeing 787–8 Dreamliner aircraft on the route.

Barcelona, the capital and largest city of Catalonia and the second most populous municipality of Spain, is also the second largest trade fair and Exhibition Centre in Europe.

Ethiopian Airlines Group CEO Mr. Tewolde GebreMariam, said:

We are very happy to spread our wings to Barcelona, which will be our second destination in Spain, after Madrid, and the 13th city in our European network.

The start of this new flight to Barcelona is part of our global route network expansion plan in line with our strategic roadmap, Vision 2025.

The new flight to Barcelona will provide seamless connectivity options for business people as well as tourists from Barcelona to our extensive African network of 58 destinations via our main hub in Addis Ababa.


Tourism Observer

ETHIOPIA: Ethiopian Airlines Initiates New Routes

Ethiopian Airlines commenced operations between Abidjan (ABJ) and New York Newark (EWR) on 12 May, a service that originates in Addis Ababa.

The carrier will operate the 7,963-kilometre route three times weekly, with the Star Alliance member utilising its fleet of 787-8s on the Africa-North America city pair.

No other carrier presently links the two countries non-stop. By adding this service to its schedule, it means that Ethiopian Airlines offers a daily departure from Addis Ababa to Newark.

This, with it also offering a four times weekly operation to the New Jersey airport via Lome, the capital of Togo.

Ethiopian Airlines added three African destinations to its network this week, with the carrier now serving Kisangani (FKI) and Mbuji-Mayi (MJM) in the Democratic Republic of Congo, plus Nosy-Be (NOS) in Madagascar.

All launched on 27 March from Addis Ababa (ADD), the Star Alliance member will operate flights to the former two destinations on a triangular routing of Addis Ababa–Kisangani–Mbuji-Mayi–Addis Ababa.

This route will be flown three times weekly facing no direct competition.

Services to Nosy-Be will also be flown three times weekly, also facing no direct rivalry, with this service operating via the carrier’s existing link to Moroni in Comoros.

A destination that joined Ethiopian Airlines’ network in November 2016. All three destinations will be served by the carrier’s fleet of 737-800s.

Ethiopian Airlines has restored service to Bahrain (BAH) , ending a six-year hiatus of flights from Addis Ababa (ADD).

The relaunched route will be flown by the Star Alliance member three times weekly on its fleet of 737-800s, with the outbound rotation operating via Dammam in Saudi Arabia.

Commenting on the launch, Bahrain Airport Company CCO, Ayman Zainal, said: “Ethiopian Airlines has been operating in the region for decades.

Its level of efficiency and operational experience are among the best in the African continent. We are very happy to have these routes added to our scheduled flights which provide added convenience and options for travelers, including the large Ethiopian community in Bahrain.

Competition on the 2,292-kilometre sector comes in the form of Gulf Air, with it also serving the city pair three times weekly on its A320s.

Ethiopian Airlines has now added the Nigerian city of Kaduna (KAD) to its network, with it becoming the Star Alliance member’s fifth destination in the country.

The carrier commenced a three times weekly service from Addis Ababa (ADD), a connection it will operate on its fleet of 737-800s. No other airline currently operates the 3,449-kilometre sector.

With this launch, Ethiopian Airlines now operates 21 weekly flights direct to Nigeria from Addis Ababa, with Lagos and Abuja being served daily, Enugu three times weekly and Kano weekly when referring to OAG schedules.

The latter is also served twice-weekly via N’Djamena in Chad. However, the airline does not have local traffic rights between N’Djamena and Kano. At present, Ethiopian Airlines is the only airline operating between Nigeria and Ethiopia.

Ethiopian Airlines commenced operations to Buenos Aires Ezeiza (EZE) on 8 March, with the Star Alliance member starting a five times weekly service from Addis Ababa (ADD), with the 11,246-kilometre city pair operating via the carrier’s existing Sao Paulo Guarulhos service.

Commenting on the launch, Group CEO of Ethiopian Airlines, Tewolde Gebremariam, said of the new service: We are glad to add Buenos Aires, the sixth gateway to the Americas for the airline, to our extensive global network.

Our new flight to Buenos Aires will provide efficient connections to our network in Asia, the Middle East, and Africa, including Beijing, Shanghai, Seoul, Tokyo, Mumbai, Delhi, Dubai, Beirut, Nairobi, and Cairo.

We are all the more happy that the flight launched on 8 March – International Women’s Day.

To mark this important occasion, and as part of our commitment of mainstreaming gender into our core business, we have made the inaugural rotation an all-women-operated flight.

As mentioned by Gebremariam, this is now Ethiopian Airlines’ sixth destination in the Americas, with it also operating to Sao Paulo in the South, as well as Washington Dulles, New York Newark, Los Angeles and Toronto Pearson in the North.

The route to Buenos Aires, which will be flown using 787-8s, will not face direct competition.

Ethiopian Airlines returned to Singapore (SIN) having last served the city in October 2014. The carrier is now offering non-stop flights to Singapore from Addis Ababa (ADD) five times weekly on its fleet of 787-8s.

The 7,257-kilometre route was previously served via Bangkok Suvarnabhumi on 767-300s.

The link between the African and Asian cities will not face direct competition, with the route continuing on to Kuala Lumpur from Singapore, with the Malaysian capital until 7 May having been served via Suvarnabhumi.

A second route was also launched by the Star Alliance member this week.

Ethiopian began flights between Johannesburg (JNB) and Lome (LFW). The 4,619-kilometre sector will be flown four times weekly on 737-800s facing no direct competition.


Tourism Observer

ETHIOPIA: Ethiopian Airlines To Start Addis Ababa To Jakarta Direct Flights July 17, 2018

Ethiopian Airlines, the largest Aviation Group in Africa and SKYTRAX certified Four Star Global Airline, is to launch thrice weekly flights from Addis Ababa to Jakarta, Indonesia as of July 17, 2018.

Member of the G-20, Indonesia, is the world’s 4th most populous nation and 10th largest economy in the world.

With this new serve, Ethiopian will service all 5 of the most populous countries in the world.

Ethiopian Airlines Group CEO, Mr. Tewolde GebreMariam, said: We are very happy to launch a direct service to Jakarta, the first direct connection between Africa and Indonesia and the first flights into Jakarta by an African carrier.

Our new service will further cement our growing footprint in Asia and will enable us to remain the carrier of choice for travelers connecting between Africa and Asia.

Indonesia is one of the most populated countries in the world with a fast growing economy and an emerging manufacturing hub.

In the coming years, African and Indonesian trade, investment and tourism ties are set to grow in an exponential manner and our direct flights will make a significant contribution in the enhancement of Africa-Indonesia cooperation.

We plan to increase our flights to daily, very quickly in line with our Vision 2025 strategic roadmap of connecting Africa with the major trading centers of the world thru our fast expanding global network.

Ethiopian will deploy the modern Boeing 787-8 on the route, which not only offers unparalleled onboard comfort to passengers.

But is also the world’s most environmentally friendly aircraft with its lower carbon and noise emissions.


Tourism Observer

KENYA: Ethiopian Airlines To Fly Twice Daily To Mombasa, Plans To Order 13 Additional Boeing 787 Jets And 6 More Airbus A350s

Ethiopian Airlines has been allowed more flights on the Mombasa route in an agreement between President Uhuru Kenyatta and Ethiopian Prime Minister Abiy Ahmed Ali.

The airline will now fly to Mombasa twice a day as Ethiopia and Kenya seek to deepen their trade ties.

The Kenyan side agreed to grant Ethiopian Airlines a second frequency flight to Mombasa, said a joint communique from State House after Mr Kenyatta met Dr Ali in Nairobi.

The extra flight given to Ethiopian Airlines will be a boost to coastal tourism which has been heavily dependent on charter flights from Europe.

Only two regional airlines, Ethiopian Airlines and RwandAir operate scheduled flights to Mombasa from Addis Ababa and Kigali respectively.

Turkish Airlines is the only one from Europe operating scheduled flights between Istanbul and Mombasa.

Government owned Ethiopian Airlines is ahead of other African airlines like Kenya Airways and South African Airways to become Africa’s largest airline by revenue and profit.

Its plan was to more than double its fleet to 120 and become Africa’s biggest airline by 2025,

Ethiopian Airlines has more than 100 aircrafts flying to various destinations in Africa, Asia to South America, and four US cities.

Kenya Airways plans its first direct flight to the US in October.

Hoteliers at the Coast have been lobbying for more international direct flights to Mombasa to ease air transport through Moi International Airport and attract more tourists.

As of now tourists visiting Kenya using other airlines must first land at Nairobi’s Jomo Kenyatta International Airport before connecting to Mombasa.

Ethiopian Airlines’ recent growth has been supersonic that it revised the ambitious 15-year strategy set in 2010 and plans to buy more planes to step up its expansion.

Its plan had been to more than double its fleet to 120 and become Africa’s biggest airline by 2025, but it already has 100 planes flying to dozens of destinations from Africa, Europe, Asia to South America, including four US cities.

The State-owned carrier has also outpaced regional competitors Kenya Airways and South African Airways to become Africa’s largest airline by revenue and profit, according to the International Air Transport Association.

We have expanded more than we planned, said Chief Executive Tewolde Gebremariam. We had to revise the objective to make it 150 airplanes or more by 2025.

It now plans to place orders this year for 13 additional Boeing 787 jets and six more Airbus A350s, he said.

The airline has come a long way from when it was established in 1945 as a joint venture with now-defunct U.S. carrier Trans World Airlines (TWA).

In its 2016/17 financial year Ethiopian Airlines generated $2.7 billion in revenue, Tewolde said, up more than 11 percent from the previous year.

Passenger numbers climbed by more than 18 percent to 9 million while net profit was $233 million, up from a little more than $220 million.

In 2013 Ethiopian Airlines acquired a minority stake in Malawi Airlines to serve as a base for its southern Africa operations.

That kicked off a series of deals including January’s agreement with Zambia’s government to relaunch that country’s national carrier, shut down more than two decades ago.

The strategy is aimed at gaining a competitive advantage against rivals such as those in the Gulf, Tewolde said.

With Africa’s aviation industry still hampered by government protectionism and high taxes, Tewolde said that setting up or taking stakes in small carriers is a way around the restrictions.

Ethiopian Airlines aims to create a new airline in Mozambique that it will fully own, he said, adding that it is also in talks with Chad, Djibouti, Equatorial Guinea and Guinea to set up carriers through joint ventures.

Going forward, it will be difficult for us to compete with only one hub in Addis Ababa.

Although it isn’t all clear skies for the fast-growing carrier.

The economic downturn in Africa caused by the collapse of oil prices in 2014 has indirectly hit the continent’s airlines, and Ethiopian is unable to repatriate more than $145 million in profits from Angola, Sudan and Zimbabwe because of foreign exchange shortages, Tewolde said.

Running a business needs cash flow, he said. Here in Africa, we have a huge problem with this, Tewolde Gebremariam says.


Tourism Observer

ETHIOPIA: Ethiopian Airlines Orders For 10 New Q400 Aircraft From Bombardier Commercial Aircraft At Approx $332 million U.S.

Bombardier Commercial Aircraft announced today that it has concluded a firm order for 10 new Q400 aircraft with Ethiopian Airlines.

The order also includes purchase rights for five additional Q400 aircraft.

Based on the list price of the Q400 aircraft, the firm order is valued at approximately $332 million U.S.

The Bombardier turboprops continue to deliver unmatched performance to our operators, and we are proud that the flag carrier of Ethiopia is once again recognizing its tremendous value by increasing its fleet of Q400 aircraft, said Fred Cromer, President, Bombardier Commercial Aircraft.

The market trend for high-performing and larger turboprops is intensifying, and this fifth reorder is a great example of the Q400 turboprop success story and the value it creates for clients around the world.


Tourism Observer

KENYA: Kenya Airways Ready For Competition With Regional Airlines Of Uganda, Tanzania And Zambia

Kenya Airways is not worried at a possible competion following the planned revival of national carriers in Uganda, Tanzania and Zambia.

Kenya Airways, popularly known by the code KQ, has been enjoying a big presence in these countries capitalising on lack of national airlines.

Air Tanzania is welcoming a new aircraft- Bombardier Q-400, which is the third since President John Magufuli rose to power, in an effort to revive the ailing airline.

The airline has also lined up three more jet aircraft, including two Bombardier C300s and one Boeing 787-8 Dreamliner to arrive in the country before the end of this year.

Uganda is also in the process of reviving Uganda Airlines before the end of the year after the cabinet approved the plan.

This will affect the 15 years dominance that KQ has been enjoying at Entebbe which might result in revenue loss as Uganda is anticipating to take back regional routes to kick-start an ambitious global outreach.

Kenya’s Transport Principal Secretary Paul Maringa, however, says the move will not affect KQ’s earnings as part of the efforts to revive the local airline are aimed at making it competitive in the regional market.

There will be increased competition obviously, but this does not mean it will affect the operations of KQ.

We are banking our strength on the services that we offer, which will keep us going even in the presence of stiff competition, said the PS.

Prof Maringa said there is nothing wrong with competition, adding that what matters is how effective Kenya Airways will be in handling the situation.

Kenya Airways, remains dominant in most routes and it has a good partnership in Europe.

Kenya Airways is relying on the direct flights to the US scheduled to start in the next few months to remain the most preferred regional airline, he said, adding that KQ good brand will give it an edge in the wake of competition.

Ethiopian Airlines, arguably Africa’s most profitable career, is also focusing on reviving some of the stalled airlines in the region. The airline has acquired a 45 per cent stake in Zambia Airways that is set to be re-launched after more than two decades.

Under the pact, the Zambian government will be the majority shareholder with a 55 per cent stake.

Kenya Airways has at least four daily flights to Dar es Salaam, five to Entebbe, four to Lusaka Zambia and at least one more other daily flight to Livingstone (Zambia).

Ethiopian Airlines is also seeking to set up hubs in southern Africa, Central Africa and the Horn that connect neighbouring countries.

According to the airline, it is working with Malawi and Zambia as southern Africa hubs. Another hub would be in central Africa, covering the Democratic Republic of Congo, Congo Brazzaville and Chad.

Former Kenya Airways chief executive officer Mbuvi Ngunze said in 2016 that their focus was on African routes, which was proving to be profitable.

Kenya Airways prefers increasing frequencies in the current destination other than growth to others. Our focus is clearly Africa and we can see the strategy in Africa has started paying dividends, said Mr Ngunze then.

The Kenya Airways’ shareholder value moved into positive territory riding on last year’s balance sheet restructuring that reduced its annual debt payment obligations, leaving room to revamp its operations.

Kenya Airways equity position stood at Sh417 million in the nine months between April and December 2017 compared to negative Sh45 billion in the year to March 2017, according to a financial report that was released last month.

The change in fortunes follows a complex restructuring of the business that saw Kenya Airways main creditors — 10 commercial banks and the government — convert Sh44.2 billion loans into equity to save it from total collapse.



Tourism Observer

ETHIOPIA: Ethiopian Airlines Flies All-female Crew On Their Flight From Ethiopia To Buenos Aires In Celebration Of Women’s Day

Ethiopian Airlines, the national flag carrier of Ethiopia made history once again after announcing the deployment of an all-female crew for their flight from Ethiopia to Buenos Aires, Argentina to mark and celebrate International Women’s Day.

Awaiting your arrival, hours left to dispatch our All Women-Operated Flight to Buenos Aires, Argentina. #Newdestination #girlpower #paintingtheskiesinpink pic.twitter.com/zioAhP7Zuy

— Ethiopian Airlines (@flyethiopian) March 7, 2018

This, however, does not come as news to those who keenly follow the state-owned flag carrier as they broke barriers some months ago.

They deployed an all-female crew for a special flight from Bole International Airport in Addis Ababa, Ethiopia to Murtala Mohammed International Airport in Lagos, Nigeria.

Lately, the Ethiopian carrier, which commands the biggest share of the pan-African passenger and cargo network, has been making major changes to its processes.

These including fully digitizing its operations and providing free Wi-Fi to all customers using its main hub.




Tourism Observer

ETHIOPIA: Ethiopian Airlines Expanding Routes, Now Flying To Argentina

Ethiopian Airlines launched its inaugural trip from Addis Ababa to Buenos Aires, Argentina, on Wednesday with an all-female crew.

The flag carrier will fly five times a week between the two capitals.

The Buenos Aires route increases the airline’s destinations in the Americas to six.

Ethiopian flies to Washington, New York, and Los Angeles in the United States, Toronto in Canada, and São Paulo, Brazil.

Ethiopian flight to Buenos Aires will provide efficient connections to our network in Asia, the Middle East, and Africa, including Beijing, Shanghai, Seoul, Tokyo, Mumbai, Delhi, Dubai, Beirut, Nairobi, and Cairo, said Mr Tewolde Gebremariam, the CEO of Ethiopian Airlines Group.

He said the airline’s expansion in terms of destinations and fleet in recent years would be instrumental in supporting Ethiopia’s rapid economic growth which is largely supported by industrialisation and tourism.

As the national carrier, we are fast expanding our global footprint, currently covering over 100 international destinations across five continents, to support the country’s growth by facilitating its access to investors and tourists,said Mr Tewolde.

Ethiopian Airlines, Africa's most profitable, has set up hubs in the continent with the latest agreement signed in January to acquire a 45 per cent stake in Zambia Airways that is set to be re-launched after more than two decades.

Ethiopian also operates Togo's Asky Airlines where it holds a 40 per cent stake, and Malawian Airlines, formerly Air Malawi, where it has a 49 per cent shareholding.

Ethiopian Airlines is seeking to set up hubs in southern Africa, Central Africa and the Horn that connect neighbouring countries leading to faster trade, investment and tourism within the continent.

We are working with Malawi and Zambia as southern Africa hubs. Another hub would be in central Africa, covering the Democratic Republic of Congo, Congo Brazzaville and Chad. We are also in talks with neighbouring Djibouti, said Tewelde Gebremariam, the CEO of Ethiopian Airlines Group.

We have a successful hub in Togo, Asky Airline in which we hold a 40 per cent share, Mr Tewelde said.

Before we established Asky, the only way to travel to travel from Cote d’Ivoire to Benin was first to go to Paris and then from Paris to Benin, he added.

He made the remark in Addis Ababa on Wednesday at the launch of an Ethiopian Airlines app that enables customers to make transactions including downloading their boarding pass.

Explaining the significance of having multiple hubs in Africa, Mr Tewelde said: We are not entering a joint venture with these African countries just for the sake of making money. Addis Ababa is a very successful hub.

Out of the around 11 million passengers we transport every year, 70 per cent are not entering Addis. They are transit passengers to other African countries and the rest of the world.

We are connecting Europe with Africa, the Middle East with Africa and Asia with Africa. We want to expand this and be close to the customers.

With a very large landmass and around one billion population, Africa has a high growth opportunity. By expanding the hubs, we will be contributing significantly to intra-Africa connectivity, he said.

Although Africa is reasonably connected with the rest of the world, the continent is not well connected to itself. Internal transport within Africa has been a major challenge especially because there are no open skies.

Due to financial and managerial complications Ethiopian Airlines recently ceased negotiations with Nigerian government to take over the previously private owned Arik Airlines of Nigeria.

A few months ago Mr Tewelde announced that Ethiopian Airlines was working on getting registered as a local Airline in Mozambique.

In 2017, Ethiopian Airlines added 12 new destinations. We will be launching flights to 10 new destinations between now and June 2018, Mr Tewelde said.

Ethiopian Airlines has acquired a 45 per cent stake in Zambia Airways that is set to be re-launched after more than two decades.

Africa's most profitable airline said Tuesday it has finalised a shareholders agreement with Zambia in line with its vision of setting up multiple hubs in southern and central Africa and the Horn.

Under the pact, the Zambian government will be the majority shareholder with a 55 per cent stake.

The re-launching of Zambia Airways will enable the travelling public in Zambia and the southern African region to enjoy greater connectivity options.

Thereby facilitating the flow of investment, trade and tourism, and contributing to the socio-economic growth of the country and the region, said Mr Tewolde Gebremariam, the CEO of Ethiopian Airlines Group.

In the statement, Mr Tewolde said Zambia Airways will serve national and regional destinations before embarking on international flights.

In December, Zambia's Cabinet approved the revival of the national airline at an estimated cost of $30 million.

The airline was liquidated in 1994 after running broke largely due to patronage and abuse by the political establishment.

Ethiopia Airlines runs Togo's Asky Airlines where it holds a 40 per cent stake and Malawian Airlines, formerly Air Malawi, where it has a 49 per cent shareholding.

Ethiopian Airlines almost doubled its profit for 2016, buoyed by an 18 per cent jump in passenger numbers.

The Ethiopian carrier summed up a great year for the continent’s largest and only profitable airline, with revenues of $261.9 million in 2016, from $150.9 million the previous year.

This despite the challenging operating environment caused by slower global economic growth and weaker performance of Africa’s major economies.

Its revenues increased by 8.6 per cent to $2.3 billion, a development attributed to an increase in flight frequency and opening up of new routes.

But the airline group chief executive officer Tewolde Gebremariam says that it was exposed to high currency fluctuations, leaving more than $220 million of its funds stuck in several African countries that had forex challenges.

Ethiopian booked a currency loss of $18.1 million as a result of continuous currency devaluation in many African countries and the associated problems of repatriation.

Mr Tewolde said the airline had difficulties repatriating funds in some oil-producing African countries.

Repatriating funds held up in Nigeria, Egypt, Angola and Sudan as a result of the oil price declines was a problem.

We have more than $220 million stuck in these countries. This has hit our liquidity, Mr Gebremariam said.

The airline was forced to resort to a natural hedge; making payments in the currency of sales and maintaining a higher cash reserve in the stable currencies such as US dollar, the euro and the British pound.

Due to the fluctuation of most currencies against the US dollar, as well as critical shortages of forex in some of the major markers in Africa.

We are closely working with International Air Transport Association (IATA) for possible ways of hedging of selected currency risks in major financial markets with selected banks, Mr Gebremariam said.

Data from the IATA shows that last year, 20 African governments owed African and foreign airlines $1.4 billion in stuck funds.

Nigeria, which devalued its currency twice, held the highest amount, $339 million, followed by Egypt with $310 million, then Angola with $190 million, Sudan $250 million and Algeria $125 million.

In 2016, Ethiopian Airlines saw its operating expenses increase by 6 per cent, which was lower than the rate of revenue growth.

It spent $631.9 million on fuel equivalent to 32 per cent of its total costs during the period down from $739.4 million the previous year.

Its overflying and navigation, foreign overhaul and landing charges also increased by $54.7 million to $147.4 million because of the increased operations, and exchange rate impact.

The airline saved $81.73 million through the implementation of various structural and strategic cost-saving initiatives.

Facing stiff competition from Gulf carriers, Ethiopia Airlines transported 270,000 tonnes of cargo and 7.6 million passengers in 2016, 75 per cent of whom were in transit.

Its finance costs jumped to $1.97 billion, $1.8 billion being loans from foreign lending institutions, secured on aircraft, bearing interest at rates of up to 4.84 per cent annually, and repayable in quarterly instalments.

It also owes $121.3 million in secured and unsecured loans from local and foreign lenders and development agencies, bearing interest at rates of up to 6.9 per cent annually.

The airline spent $61.6 million on landing and parking, up from $48.23 million, as a result of the new routes.



Tourism Observer