Ethiopian Airlines: A hub in every region

Ethiopian Airlines Hub

By Nicholas Norbrook in Addis Ababa, Ethiopia

The managers of Ethiopian Airlines have an ambitious expansion plan to be implemented by 2025 that involves more training and new infrastructure.

Ethiopian Airlines is one of the leading state-owned companies in the country.

As with the Agricultural Transformation Agency, the government has chosen to prioritise professional staff rather than allow political appointees. For Henok Teferra Shawl, the vice-president for strategy and alliances, the key has been discipline.

“They know that this is a company and that it has to be operated on commercial considerations. This is a very tough business, the airline business, as you know. There’s very little margin for error.

“The competition is global, and it’s fierce. It’s uneven because, as you may well know, there are those who are endowed with much more capital and access to cheaper fuel.”

Developmental states come with their own challenges, particularly in the governance of parastatals that are used to drive development. Opportunities for rent-seeking abound, especially when the para-statal operates as a monopoly.

Read more at: The Africa Report

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