Sub-Saharan Africa's only profitable airline reveals success formula

Thanks to a concerted drive to help grow regional and global trade, Ethiopian Airlines was the only airline of the top three in sub-Saharan Africa to make a profit over the past three years. The other two – Kenya Airways and South African Airways – joined the rest of the region’s airlines in suffering cumulative losses in the period 2011- 2014. “Ethiopian Airlines (ET) has the largest cargo fleet in Africa and part of its success lies in the fact that it worked with exporters and importers to grow trade, recognising that trade would help grow the country and subsequently the airline as well,” said Zemedeneh Negatu, managing partner at Ernst & Young (EY), Ethiopia. Speaking at last week’s International Air Transport Association (Iata) Aviation Day Africa conference in Sandton, he said that the country’s exports were not dependent on commodities but that currently its greatest export product was aviation services due to the route connectivity it had established. “The airline also helped grow the Ethiopian flower export industry to what it is today because of its global route network,” said Negatu. According to Consultancy Africa Intelligence (CAI), Ethiopia has become the second-largest flower exporter in Africa (after Kenya) with speculations of increased future growth. Export value earned is expected to rise up to US$ 550 million by 2016, said CAI earlier this year. Negatu noted that working with other business stakeholders, as well as government, to meet the collective objective of improved trade growth through increased regional, local and international connectivity was one of the keys to an airline’s success. “Airlines must collaborate to ensure greater regional liberalisation of skies. Africa and emerging Asia offer the greatest trade growth opportunities, yet the SSA region’s intra-Africa trade currently still only amounts to 10-12%,” he said. INSERT & CAPTION The airline helped grow the Ethiopian flower export industry to what it is today. – Zemedeneh Negatu CAPTION Ethiopian Airlines has the largest cargo fleet in Africa. Photo: Wikimedia