Fleet expansion adds capacity for SA customers

Ethiopian Airlines is on

a growth trajectory as

it gears up to support

increased volumes

of export cargo – particularly

perishables.

“In the past decade we have

seen a huge increase in exports

from East Africa to Europe –

largely cut flowers, roses and

vegetables produced in Kenya,

Uganda, Tanzania and Ethiopia

and sold to European markets

at auction in Holland,” regional

manager southern Africa, Abel

Alemu, told FTW.

“Ethiopia is currently the

second largest flower producer

in Africa and sixth in world –

and to cater for this demand we

need a strong freighter network

and good aircraft that can serve

the market,” he said.

Significant volumes of

consumer imports sourced

from the East provided

additional potential, he added.

As a part of the 2025

strategic roadmap, the airline

recently embarked on a fleet

expansion programme and

currently operates six brand

new 777 freighters with 95ton

capacity – used for continental

traffic between Asia and

Africa; Europe and Africa;

and inter-Africa – as well as

two B-757 freighters. This is

in addition to the wide body

passenger aircraft scheduled on

various routes.

Addis Ababa airport has also

been gearing up for growth and

expansion of its 10-year-old

perishable facility is currently

under way. “A new cargo

warehouse is being built that

will offer 1.2m tons of capacity

a year,” said Alemu. “Phase one

is expected to be completed

at the end of this year or early

2017, providing a general cargo

area as well as temperaturecontrolled

rooms.”

Cargo played a key role in

the airline’s business strategy,

said Alemu. “It’s the second

largest division for the airline

and contributes 18-20% to the

general revenue.”

It’s not without its

challenges, however, and

the biggest is directionality.

But triangulation of services

is providing an innovative

solution to the problem.

“During peak season, ET

operates 16 flights a week from

Addis Ababa to Europe – but

the demand on the return leg

is limited. Hence, some of the

return flights are re-routed

via West Africa (LOS and

ACC), Far East (HKG and

PVG), Middle East

(DWC) and

Johannesburg

where three

weekly

flights

operate

direct from

Liege, Belgium.

Apart from

perishable

produce – mainly out of East

Africa – air exports to the rest

of the world and inter-Africa

are not strong enough to

warrant a dedicated freighter.

“The triangular operation

not only helps us to fill the

empty leg but also provides

additional options to our

customers in South Africa,”

said Alemu.

Despite the highly

competitive market, with

cargo yield “dropping by the

day” because of competition,

the airline continued to make

a profit, and had done for

several years, he said.

In the longer

term, network

expansion

could see the

introduction

of services

to North

America

and

additional

freighters

into India.

And while the drop in the oil

price has clearly helped reduce

operating costs, it’s a doubleedged

sword. “With oil prices at

their current level oil business

in exporting countries in West

Africa, where we have huge

interests, is static which has

affected volumes from Lagos

and Luanda.”

The airline is however upbeat

about further growth, with

the recently introduced Cape

Town flight already operating

nine times a week and offering

capacity for crabs and other

seafood exports to Hong Kong.

Alemu, who took over the

regional manager role late

last year, has ten years’ airline

industry experience in both the

passenger and cargo sectors.

INSERT & CAPTION

The triangular

operation helps us to

fill the empty leg.

– Abel Alemu