图片展示

+86 186 6500 8844

CN

图片展示

Your location:

图片展示

Ethiopian Airlines CEO Discussion on Competitiveness in the Changing Industry Following the Pandemic

2023-08-28 20:09:19

Click:

Against the backdrop of intense inflation, fierce competition after the pandemic

Against the backdrop of intense inflation, fierce competition after the pandemic, and continuous changes in the aviation industry, Ethiopian Airlines is implementing the "2035 Vision" growth strategy.


Ethiopian Airlines is a leading airline in Africa in terms of fleet and passenger numbers, far ahead of Egypt Airlines and Kenya Airlines. It is one of the few companies in the world that can still operate without public assistance or layoffs during the COVID-19 pandemic.


As explained by Mesfin Tasew, the CEO appointed to this position in March 2022, the airline now finds itself facing new difficulties in a rapidly changing environment.


Mesfin stated that the 2022-2023 fiscal year, which ended on June 30th, was "a very prosperous year".


Mesfin said: "We transported 13.7 million passengers, an increase of 57% over the previous year and 10% over that before the COVID-19 epidemic, and the freight volume was 740000 tons, twice that before the COVID-19 epidemic."

Ethiopian state-owned airline claims to be the only profitable airline in Africa. Its "turnover reached 6.1 billion US dollars, 20% higher than the previous fiscal year, and nearly 50% higher than that before the COVID-19 epidemic", Mesfin said. "We have completely recovered from the impact of the COVID-19 epidemic".

The impact of the pandemic still exists

Mesfin stressed that the impact of the epidemic still exists. The "high inflation" in the world "translates into high operating costs and high fuel prices. Many countries are still recovering from the COVID-19, and economic growth is still weak".

Like other airlines, Ethiopian Airlines also faces a shortage of components.


The CEO stated that the supply chain has been disrupted by the pandemic and has not yet fully recovered. This forces planes to sometimes have to ground while waiting for parts.

This problem should be solved within two to three years (...), but today it is a real challenge.

Another problem is related to the "intensified competition" when activities intensified after the COVID-19 epidemic.

He explained: "In recent years, airlines have been trying to recover from the impact of the COVID-19 epidemic, but now (...) most airlines are very optimistic and have ordered a large number of aircraft."

This will lead to the dumping of seats provided (...), thereby reducing profitability and intensifying competition in ticket prices. Ethiopian Airlines will have to reassess its cost structure and strive to implement cost reduction plans to maintain competitiveness.


Allegations of discrimination

In terms of law, the company is facing a "discrimination" lawsuit in an Ethiopian civil court.

A human rights association has accused Ethiopian Airlines of taking discriminatory measures against passengers from the Tigray region who wish to fly to Addis Ababa, following a two-year war between local authorities and the Ethiopian federal government.


During the conflict, the company was also accused of transporting Ethiopian army soldiers and equipment to Tigre, but the company denied this accusation.


Future growth

Mesfin stated that despite facing many challenges, Ethiopian Airlines remains committed to pursuing its growth strategy.

The "Vision 2035" strategic plan proposed at the end of 2022 aims to increase the number of international destinations from the current 130 to 207 and quadruple the number of aircraft fleets to over 60 million people. 140 to 271 aircraft.

At a time when the aviation industry has set a goal of reducing carbon emissions to zero by 2050, Mesfin stated that the company is "currently developing a sustainable development strategy".

To achieve this, sustainable aviation fuel (SAF) is needed.

Research has shown that over 60% of the reduction in emissions will come from the use of sustainable aviation fuels (SAF).

However, all airlines face two issues: availability and price, which are two to four times more expensive than paraffin.

Nowadays, there are some [SAF] manufacturers in Europe and the United States, but not one in Africa, "Mesfin pointed out, while paraffin" accounts for about 40% of our costs. Using SAF at current prices will reduce our costs. "Costs are disproportionate.


Winsky Logistics Information
图片展示

National hotline

18665008844

Copyright Guangdong ICP No. 15070066

Winsky Home

Service item

Shipping service

More services

News case

About Widu

Contact Winsky

Sitemap

E-Mail: service@winskyglobal.com

Address: 2F, Area B, Friendship Kudu, No. 698, Renmin North Road, Yuexiu District, Guangzhou


Scan code follow us

Copyright © 2023 Winsky Logistics record number: Guangdong ICP No. 15070066

添加微信好友,详细了解产品
使用企业微信
“扫一扫”加入群聊
复制成功
添加微信好友,详细了解产品
我知道了