COMESA Nov 20 presentation

Ethiopian Airlines
Smart Partnerships
Smart Investments
Intra-Africa Trade
• Very low compared to other regions
Intra-Regional Trade
Africa: 10%
Europe: 60%
North America: 40%
ASEAN: 30%
• Majority of trade done with countries outside of Africa
Consequence for African Countries
• Unable to fully harness the synergies and
complementarities of their economies
• Unable to take advantage of economics of scale
• Loss of greater income and employment
• Unable to competitively source goods and
• Become vulnerable to external macroeconomic
shocks and protectionist trade policies
Challenges for Intra-Africa Trade
“If you don’t get there, you don’t trade there”
Generally Lack of Trade Infrastructure
• Inadequate network of Road, Rail, Air and
• Lack of Soft Infrastructure such as ICT
• Transport cost in Africa one of the highest in
the world
• Especially for landlocked countries, costs as
much as 70% of value of exports
Ethiopian Airlines
Connectivity – Passengers and Goods
67 years of connecting Africa
43 Destinations in Africa
Biggest Cargo Service
The only daily and double daily
east – west passenger connection
• More connection options through Star
Alliance Membership and Code Share
• Continually analyses new market
opportunities and enters them alone or
with partners
Ethiopian Airlines
• Pioneer in African Aviation
• Introduced the first Jet Aircraft in Africa
• Continually invests on acquisition of modern and
economical aircraft
• 53 Aircraft including the most modern and youngest
• 787, 777-200LR, 777F,737-800,Q-400
Ethiopian Airlines
• Oldest and only aviation academy in Africa
• Invests in technology (simulators, ICT, machinery, tools)
• Trains personnel for other African Airlines
• Adequate Knowledge and Skill Transfer
Ethiopian Airlines
Maintenance, Repair and Overhaul
One of the oldest in Africa
Provides maintenance for other African Airlines
Continually invests in acquiring latest skill and technology
Certified by FAA and EASA
Boeing MD11, B777, 767, 757, 737, Bombardier DHC-8, Fokker
Ethiopian Airlines
• Establish multiple hubs in Africa
• Hubs collect regional passengers
and goods and feed to main hub
• Hub to hub connection
• Already established a hub in Lome tapping the
vast potential in West Africa through strong partnership
stake in ASKY, a Community Airline
• In negotiations to establish additional hubs in central and
Southern Africa
for Airlines in Africa
Poor Infrastructure
• Airport Expansion –improve infrastructure at airports to cope
with growing traffic
• Analysis indicates that in African Airlines with an average increase
in capacity of 5%, yet facilities remained the same
• Lack of reliable Information Technology platforms to process all
passengers and baggage
• Safety oversight
• Adherence to regulatory requirements and industry
best practices.
Africa Share of Total Accidents
• Transport Canada
Africa (18%)
Rest of the world
The rest of the world (82% )
Source : Flight Safety Foundation
• US Transport Safety
• ICAO Security
• Star Safety Audit
Excessive Costs
High operating costs
Landing & Overflying
Airport taxes
Way Forward
• Liberalization & deregulation of markets in general
• Enhance aviation safety and security
• Investment on Air Transport Infrastructure that facilitate growth and
improve safety
• Reduce fuel, landing, handling, navigation costs
Way Forward
• Advancement of information technology empowering customers
(e.g. online booking)
• Full implementation of YD
• Facilitate partnership and alliances among African Airlines
• Government to create the enabling environment for airlines