Ethiopian Airlines

MAY 2018

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ETHIOPIAN AIRLINES

STILL RISING As Africa’s leading local airline, Ethiopian Airlines knows a thing or two about flying. We spoke with Tewolde Gebremariam, Group CEO, about how the airline is meeting and exceeding its goals, and how it plans to work with Africa’s other carriers to fly to new heights WRITTEN BY ALICE INSTONE-BREWER

ETHIOPIAN AIRLINES

Ethiopian Airlines describes itself as “the flag carrier of

Ethiopia”. In operation for over 70 years, the airline has grown from its first flight in 1946 to become of the biggest carriers in the continent. In fact, according to Tewolde Gebremariam, the Ethiopian Aviation Group – of which Ethiopian Airlines is a part - is the “fastest growing aviation group in Africa”. This national endeavour originally ran weekly services to Cairo, but this service quickly expanded as demand grew.

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A

t the time, the airline’s fleet consisted of surplus aircraft from the US military – sparse vehicles that were efficient but had few in the way of creature comforts. However, it was a

starting point – 70 years later, in 2016, the airline became the first in Africa to receive the highly advanced Airbus A350XWB and to fly one in African skies!

Today, now wholly owned by the government of the FDRE, the airline serves 112 international and 21 domestic destinations across five continents. Within Africa today, the airline claims to be “unrivalled for efficiency and operational success”. The company goes on to explain: “Operating at the forefront of technology, the airline has become one of Ethiopia’s major industries and a veritable institution in Africa. It commands a lion’s share of the pan-African network, including the daily and double daily east-west flight across the continent.”

HANDLING AND MAINTENANCE - Airport security is our job -

2025 VISION This strong position and recognition within Africa is, in part, the result of their efforts towards their company Vision: “As per our 2025 Vision, Ethiopian aspires to become the leading aviation

+850 flights/year

+300 employees

group in the continent – a vision we have already accomplished with time to spare.” This achievement already firmly under their belt,

3 airports

+10 types of plane

Ethiopian don’t plan to become complacent. Instead, Tewolde says that Ethiopian will continue growing, expanding both in network

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ETHIOPIAN AIRLINES and fleet size. To achieve this, the airline is seeking to increase its

(SAATM) to the world, underlining the need for the collaboration

collaboration with African carriers – a collaboration that will not

of African states as per the Yamoussoukro Decision. SAATM

only allow Ethiopean to further expand into reach within Africa, but

is intended to drive down airfares by allowing the airlines of

the entire indigenous aviation industry.

signatory countries to freely access each other’s airports.” These

“The aviation industry of the continent is characterized by

lowered charges would help alleviate financial stress on local

being buoyant, yet heavily skewed in favour of non-African

airports, and would free up local airlines’ ability to collaborate and

airlines,” Tewolde explains, going on to elaborate: “As it stands,

share resources. SAATM has already been signed by 23 member

African airlines have limited market access within Africa. 80% of

countries, and Tewolde feels confident that this is an important

the air transport between Africa and the rest of the world is owned

step forward: “We believe we will succeed in this.”

by non-African carries, while indigenous African carriers share the remaining 20%.”

WELL CONNECTED Of course, campaigning for open airspace and cut fees is only

SAATM

half the battle in Ethiopian’s continued conquest of Africa’s skies –

In part, these challenges are due to a lack of well-developed

the other half is in their quality as an airline. Already the leader of its

airport and ICT infrastructure for African airlines, as well as slow

indigenous family of airlines, Ethiopian is clearly doing something

progress in discussions over an African Open Sky Agreement. In

right. We asked Tewolde what he felt was the key to their current

the face of these issues, Ethiopean decided to act: “As Champion

success:

of Single African Skies initiative, Ethiopian has been advocating the

“The success of Ethiopian Airlines, among other reasons, is

implementation of the Single African Air Transportation Market

attributed to our unique hub, Addis Ababa. Strategically located

ETHIOPIAN AIRLINES and ICAS have many things in common. Both entities have a common goal of providing a safe environment and customer friendly travel experience for their passengers. They build an environment on mutual trust.

Despite the fact that there are competitions between the two companies, there are also areas where they can cooperate.

To mention a few, using Ethiopian Airlines Aviation Academy to train ICAS staffs from different disciplines, use of the Airlines ground support equipment maintenance center and loaning of equipment from each other. They bring unique qualities and services to their respective customers. So, “when two or more companies do the same thing, it is more than the same.” It is a relationship that is intertwined and yet complex.

GROUND GROUND HANDLING HANDLING COMPANY COMPANY According Accordingto toIATA IATAestimates, estimates,airlines airlinesoutsource outsource more more than than 50% 50% of of thethe ground ground handling handling to to nonnonairline airline operators. operators.

With With its its vision vision to to provide provide world world class class ground ground handling handling services services in East in East Africa, Africa, ICAS ICAS obtained obtained its its certificate certificate of of operation operation in 2015 in 2015 as as thethe 1st1st IATA IATA certified certified private private Ground Ground Handling Handling Company Company (GHC) (GHC) in Ethiopia in Ethiopia operating operating outout of Addis of Addis Ababa Ababa Bole Bole International International Airport Airport andand Dire Dire Dawa.

Dawa.

TheThe motives motives behind behind thethe establishment establishment of ICAS of ICAS are:are: • • To To joinjoin thethe aviation industry as as a standard aviation industry a standard ground service provider in the areas of of ground service provider in the areas Passenger, Cargo andand Ramp services Passenger, Cargo Ramp services • • To To be be an an alternative andand a support ground alternative a support ground handling company in the country handling company in the country • • To To be be a choice between a mutually exclusive a choice between a mutually exclusive different needs to quickly andand efficiently meet at at different needs to quickly efficiently meet anyany time. time.

• • To To be be part of the players wherein Ethiopia is the part of the players wherein Ethiopia is the 2nd2nd flower exporting nation in Africa, next to to flower exporting nation in Africa, next Kenya.

ICAS plays a major rolerole in facilitating thethe Kenya.

ICAS plays a major in facilitating export of fresh produce from thethe country. export of fresh produce from country.

It mainly provides: It mainly provides: • • FullFull passenger andand cargo Ground Handling passenger cargo Ground Handling Services Services • • Ware house Management Ware house Management • • Cargo De-Consolidation services for for seasea andand airair Cargo De-Consolidation services freight freight • • Customs transit andand clearing services Customs transit clearing services • • Doorto-door delivery service.

Doorto-door delivery service.

• • Courier andand baggage intra storage andand delivery Courier baggage intra storage delivery services. services.

• • Special Limousines service for for VIPVIP andand CIPCIP Special Limousines service customers customers TheThe company is currently handling Saudi Airlines, company is currently handling Saudi Airlines, Etihad, Qatar Airlines andand AirAir Djibouti Airlines notnot Etihad, Qatar Airlines Djibouti Airlines mentioning thethe AdAd hoc operators.

ICAS hashas also mentioning hoc operators.

ICAS also created jobjob opportunity for for more than 500500 people created opportunity more than people which also hashas a rippling effect. which also a rippling effect.

Head Head Office Office Address: Address: Lidya Lidya Building Building behind behind Edna Edna Mall Mall in front in front of of Harmony Harmony hotel hotel Tel:Tel: +251 +251 116 116 61 61 04 04 05 05 Fax: Fax: +255 +255 11 11 663 663 31 31 98 98 P.O.Box: P.O.Box: 433 433 Code Code 1250 1250 E-mail: E-mail: commercial.add@icasethiopia.com commercial.add@icasethiopia.com www.icasethiopia.com www.icasethiopia.com

ETHIOPIAN AIRLINES in the middle of East-West major trade lane, this hub makes our

Q-400 double cabin. To date, the airline currently operates 98

connections seamless and convenient. This efficient network of

aircraft, with a further 58 on order.

connectivity has enabled Ethiopian to connect Africa with the rest of the world better and faster than any other carrier.”

“Utilization of latest technology is also one of the qualities that led to our continued success. We are at the forefront of utilizing

“The other reason Ethiopian is successful is the efficient

latest industry technology and pioneer in African aviation.” This

network of connectivity and frequency of our flights. There

applies not only to the planes themselves, but also the systems

is no airline, other than Ethiopian, that connects Africa

used to support both flights and the ground services provided

with itself and the outside world. Our frequency stands out

to passengers and customers. Technology is as essential as staff

as best with daily and double daily connections throughout the

when it comes to running operations smoothly, especially given

continent.”

an airline’s complex logistical requirements. “Here at Ethiopian, we say ‘Success Loves Speed!’, and we believe that we have to grow fast. With the abundance of technology at everyone’s

THE LATEST EQUIPMENT

hand, we have to stay updated to satisfy the requests of our

Ethiopian’s fleet is not only well connected – it is also extremely

esteemed customers.”

well maintained. With an average age of only five years, their fleet – which started out from the humble beginnings of second-hand American war planes – now boasts a range of what Tewolde rightly

GROUND SERVICES

calls “trailblazing and environmentally friendly aircraft”, including

Handling both passengers and cargo, Ethiopian must be reliable.

the Airbus A350, Boeing 787-9, Boeing 787-8, Boeing 777-300ER,

Their Cargo & Logistics Services department is one of the largest

Boeing 777-200LR, Boeing 777-200 Freighter and Bombardier

in the world, with its top capacity at close to 1 million annual tons.

Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA)

E-mail: info@addischamber.com; aachamber1@ethionet.et Website: www.addischamber.com  +251 011 5518055, Fax + 251 011 5511479  2458 Addis Ababa, Ethiopia Like fraternal twins, Ethiopian Airlines and AACCSA have, over the past seventy years, overcome challenges and stood as shining examples of audacity and resilience. Ethiopian grew as the leading Airline in Africa and one of the best few in the aviation industry, while AACCSA served the interests of the private sector by promoting trade and investment and helping businesses grow and prosper. We are happy that we are selected as one of Ethiopian’s key business partners and look forward to build on this phenomenal relationship in the years ahead. We are really proud of Ethiopian.

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ETHIOPIAN AIRLINES They are equipped to handle anything from perishable items to dangerous or unstable cargo, and even live animals! However, the most precious of their cargo will always be their paying passengers, and their staff themselves.

As a part of their care for both, one of Ethiopian’s many recent expansions has been an investment in its catering department. The department employs a team of highly trained local chefs that can produce traditional Ethiopian dishes as well as Chinese, Indian, Ottoman, Italian, Halal and many more European meals. In keeping with the airline’s 2025 vision, the department has recently had a complete overhaul, with high-tech upgrades and an increase in space to their kitchens.

The new premises is three times larger than the previous facility, including 20 loading and 10 offloading docks to help in the delivery of ingredients and transport of meals to the airline’s 240 daily flights.

In the new facility, the catering team are able to produce an impressive 100,000 meals a day to support the airline. The department even has time to offer a laundry service, looking after everything from crew uniforms to seat covers.

ETHIOPIAN AVIATION GROUP This department is one of many; to break Ethiopian Airlines down, one must look at the Ethiopian Aviation Group. This Group supports the airline itself and the many departments needed to keep it running smoothly, including the ET In-flight Catering, but also ET Regional Services; ET International Services; ET Cargo & Logistics Services; ET MRO Services; the ET Aviation Academy; ET Ground Services and ET Airports Enterprise.

Of these, one of the most exciting is Ethiopian’s own Aviation Academy, which allows them to train staff to their high expectations: “We are self-sufficient in the training of aviation personnel who embody the values and spirit of Ethiopian Airlines.

Our Aviation Academy is the most modern and the largest in Africa with more than USD 100 million investment, and intake capacity of 4000 trainees.” The Academy prepares trainees who wish to work in all areas of airline operations, from pilots and cabin crew to maintenance staff and customer service personnel.

The ability to run this in-house training, to such a high standard and with this level of resources at their disposal, allows Ethiopian to invest heavily in their most valuable resource. “Our highly skilled

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offers online and heavy maintenance for our airplanes Bombardier Dash8-Q400.

It also supplies all necessary parts needed for the up keeping of our airplanes. The training is a part of the partnership.

ETHIOPIAN AIRLINES

ETHIOPIAN AIRLINES and dedicated employees play significant roles in the success of the

As well as serving as CEO, Tewolde also serves as a member

airline. We have a hard working and skilled workforce. The airline

of the Board of Governors of the International Air Transport

is also led by highly skilled and vigilant management who skilfully

Association (IATA), is an Executive Committee member of the

navigate through difficult situations such as fuel surge, conflict

African Airlines Association (AFRAA), and also holds Board

situations, and sustain the airline’s success and growth.”

positions for the Airlink Advisory Council, Ethio-Telecom, the Ethiopian Railway Corporation and Commercial Bank of Ethiopia

TEWOLDE GEBREMARIAM

and, and is the Chairman of the Board of Directors of the Ethiopian Tourism Organization (ETO).

Leading that management is Tewolde himself. Tewolde first

Tewolde’s journey through the company’s ranks prepared him

joined Ethiopian Airlines in 1985. Beginning his career with the

well for his senior position, giving him a ground-up appreciation

airline in cargo traffic handling, he was soon promoted to manager

for the daily operations of a creature as complex as an airline. Now

of the department. From there, he was appointed as Regional

having been in the position for seven years, and with the company

Director for India and South East Asia, and later transferred to

as a whole for 33, he has been the recipient of numerous awards

Jeddah as Area Manager for Saudi Arabia. Finally, when Ethiopian

acknowledging his excellent leadership skills and business sense.

began offering direct services to the USA, he was appointed as Area Sales Manager for North East USA and Canada.

From here, he was given several new appointments in the early 2000s: Executive Officer Marketing & Sales in 2004, Chief Operating Officer of Ethiopian in 2006, and finally airline CEO in January 2011.

First, in November 2012, he won the ‘African CEO of the Year2012’ award from the African CEO Forum. Then, the next month, he won the ‘Best African Business Leader’ award from Washington D.C.’s Corporate Council on Africa.

In July 2013, he became the first African Airline CEO to receive the ‘Airline Strategy Award for Regional Leadership’ in the award’s

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ETHIOPIAN AIRLINES 12-year history, and later that year, he also won the the 2013

The expansion project will increase the capacity of the airport to

‘Planet Africa professional Excellence Award’. They go on – Ethioian

22 million passengers per year – a dramatic rise from the current

Airline’s own Board of Directors awarded him a Gold Medal for

10 million. Meanwhile, the hotel, currently under construction, has

leadership excellence, and he received a plque from the Trade

been designed to house an impressive 373 rooms, four restaurants,

Union for his commitment towards Vision 2025. Finally, in 2015, he

two bars, swimming pools, gift shops and duty-free shops, meeting

received the International Grand Prix Special Award in Milan. This

rooms, gyms, and a banquet hall that can hold 2000 people.

awkward was in “recognition for his achievements in developing

However, it is the airline’s recent SAATM agreement with local

the Airline into the foremost aviation group in Africa, and for

carriers that promises the most exciting change. Already far ahead

spearheading the transformation of Ethiopian into becoming one

of their personal goals, Ethiopian are passionate about bringing

of the fastest-growing airlines in the world.”

about industry-wide change for indigenous African airlines, and their recent successful negotiations are only the beginning.

ON THE RISE Between their strong position in Africa, their strong leadershipm and their ability to ensure a constant supply of well-trained staff, it is no wonder that Ethiopian Airlines are confident about their future, and they’re happy to invest in it. New developments on the horizon for the company include ten new global destinations, the construction of an Ethiopian 5-Star Hotel, and an expansion to the Addis Ababa Bole Airport, which is central to the airline’s operations.

Hopefully this is the first essential step towards African companies reclaiming their skies: watch this airspace!

Tewolde Gebremariam, Group CEO