Ethiopian airlines to open regional hub in Lome Togo
By Dereje Berhanu
ADDIS ABABA, Ethiopia – Ethiopian Airlines (EAL) has announced that it has signed a memorandum of understanding with the newly established Asky Airline.
Mr. Girma Wake, chief executive officer of EAL said: “We reached a basic agreement to purchase about 20 per cent of the total share.”
EAL had been searching to acquire a West African regional hub with a partner for a long time. Now, negotiations with a technical partner have reached an advanced stage. The outcome of these negotiations would provide the airline with the operational support it requires for its operations.
ASKY drew from EAL the experience of African airlines and their support so that together it would be possible to strengthen and improve upon connections to Ethiopia’s states as well as boost intra-African air transport.
EAL’s main market is found in Africa, especially West Africa. According to Girma, the opening of a regional hub helps EAL to compete in the African market.
The shareholders of the Regional Airline Promotion Company (SPCAR) met to establish the new airline, on 17 January 2008 at Ouagadougou, Burkina Faso.
Asky airline was established to work with all African countries. It started operating its first commercial flights before the end of the first half of 2008. It will eventually be able to operate daily flights to all sub-Saharan countries. Thus, from Dakar to Addis Ababa, through Khartoum, from Abuja to Windhoek, Johannesburg, Nairobi or Harare,
The airline was endowed with a capital of USD 120 million, of which 80 per cent is shared among private investors, while 20 per cent would be held by public financial institutions whose mission is to support privately owned development institutions. Such a financial structure would enable the airline to achieve its objectives with regard to not only quality of service and comfort of passengers, but also the safety and security of its operations.
In other news, EAL registered a net profit of over half a billion birr in 2007\2008, in spite of the escalating fuel prices and stiff global competition. Ethiopian scored the highest revenue and net profit ever. According to the fiscal report, Ethiopian generated 9.2 billion birr in operating revenue during the budget year, a 34 per cent increase over that of the previous year. During the same period, Ethiopian also transported 2.5 million passengers, an increase of 20 per cent compared to last year.
During the fiscal year, its total operation expense increased by 31 per cent to 8.8 billion birr. Fuel costs represented the lion share, followed by the cost of the aircraft leases and payroll expense.
With the remarkable order of 10 Boeing 787 Dreamliners it will be the first carrier to operate the aircrafts in Africa, the Middle East and Europe.
The deal was for the new fleet to be delivered in 2009, but in the time being Boeing announced the delay of the production Girma said: “We don’t expected to deliver this new airplanes at the time now Boeing workers are under strike so the delay of the delivery is expected.”
According to Girma: “EAL will get compensation from Boeing but I can’t tell how much money because it is confidential.”
Also, EAL, in one of its capacity building drives, has recently commissioned a Boeing 737 simulator at a critical period when shortages of core aviation personnel on new-generation aircraft is creating apprehension in the airline industry. Its maintenance facility has also provided leverage for airlines in Africa in the face of high operating costs. Simulators are training facilities for pilots.
Since its inception on December 5, 1945, Ethiopian has steadily grown to become a reputable African airline with an unparalleled coverage of Africa, the Middle East, Asia, Europe and America.
Today it is operating the largest network in the African continent with extended services both in passengers and cargo. The airline currently serves 32 city destinations in Africa and a total of 52 international destinations.
Ethiopian Airlines started its first international flight to Cairo, Egypt on April 8, 1946. Ethiopian has expanded to other African nations and now has a wide coverage of Africa, the Middle East, Asia, Europe and the USA. Today, it is operating the largest network in the African continent with extended services both in passengers and cargo.
Ethiopian recently won the 2008 Corporate Achievement Award of Aviation & Allied Business for setting the pace and continued contribution towards the growth of African aviation industry.
With the recent addition of new flight services to Ouagadougou and Lubumbashi, Ethiopian provides services to 32 cities in Africa and to a total of 52 international destinations spread around the globe.