2023-09-21 22:34:43
Today, only 2% of global air traffic is provided by African companies. The continent therefore presents significant growth potential for the air market. The leading African company, Ethiopian Airlines, is an exception, with $5 billion in turnover in 2022. What is the recipe for success? And what are the challenges of the sector?
From our correspondent in Addis Ababa,
During rush hour, Addis Ababa airport terminals are crowded. Ousmane Conté is Guinean and a football player’s agent. It goes all over the world and favors continental companies. “ We must promote the African continent. With all the efforts that Ethiopian Airlines is making and that all other African companies are making, it is a pleasure for me to contribute in my own way “, he pleads.
On the tarmac, the planes are in the colors of Ethiopian Airlines. Other African companies show a loss of 3.2 billion euros between 2020 and 2022, largely due to the Covid-19 epidemic. Some, like Kenya Airways or South Africa Airways, are undergoing restructuring. Operating on the continent is more difficult than elsewhere: fuel is more expensive and fundraising more costly.
This did not prevent the Ethiopian company from generating 868 million euros in profits in 2022, thanks to solid financial management and a model that integrates all travel-related services. Explanations from Raffaella Irié, data and statistics expert at the African Airlines Association: “ The entire Addis Ababa airport is managed by Ethiopian Airlines. They also have related activities such as hotels, which save some costs. Like all people in transit here, most are staying at the Skylight Hotel, which is owned by Ethiopian Airlines », Underlines the expert.
A patriotic entrepreneurial spirit shared by staff
The state-controlled company also trains its staff in its own university academy, which promotes managerial stability and a very patriotic entrepreneurial spirit shared by staff, such as team leader Selamawit Teshome.
« When I was a little girl, I watched the commercials, I saw the crew of the plane, the pilot and all that, you might see that they were happy. I wanted to be a part of this and do my part, and contribute to my country and work for the national airline “, she remembers.
With a view to expanding, Ethiopian Airlines is defending a single air market in Africa so that all companies have free access to signatory countries. It has increased strategic and financial partnerships with sub-regional companies such as Asky and Air Malawi. But obstacles remain: lack of political will, protectionism, and excessively high taxes which weigh on a still very privileged clientele.
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