Ethiopian Airlines is a case study of how successful airlines should be run in Africa. Mismanagement and lack of foresight has hindered the growth and plunged national carriers like Kenya Airways (abbreviated as KQ) into heavy losses. This is the case with majority of airlines in Africa that now owe their operations to government bailouts. On the other hand, Africa’s largest carrier in revenue and profits is on a roll.
The Ethiopian national carrier posted a net profit of $233 million for the 2017/18 financial year, from $229 million it announced the previous year.
Number of aircraft
A total of 14 aircraft were purchased by the airlines to bring its fleet to 100. The carrier also added 21 destinations.
The airlines that has been in existence since 1945 is wholly owned by the Ethiopian airlines. Ethiopian Airlines group chief executive Mr Tewolde Gebremariam has in the past suggested that the airlines should be co-owned by interested African governments.
Mr Tewolde Gebremariam flouted the idea of selling a stake of
Ethiopian airlines during a press briefing late last year:
“As a pan-African airline, I don’t see any reason why we should not sell the minority shares of Ethiopian Airlines to African countries if they are interested in buying…”
Ethiopian Airlines (EAL) Shareholding in other carriers
Chadian Airlines-EAL has a 49 per cent in the carrier with the government holding the remainder
Guinea Airlines-another 49 per cent stake
Ceiba International-This new airlines will be set up jointly with the Equatorial Guinea.
Zambian Airways-45 percent stake
Togo’s Asky Airline – 40 per cent stake
Malawian Airlines -49 per cent share
In the process of setting up a subsidiary, the Ethiopian Mozambique Airlines with Mozambique
How much are Ethiopians Airlines paid?
According to BusinessInsider, the pilots who steer this success story are paid half of what their Kenyans counterparts at the loss-making Kenya Airways earn. A captain at KQ earns Kes1.6 million ($16,000) per month. Going by this, an EAL pilots pockets a monthly salary of $8,000.