Ethiopian Airlines 2015 Outlook

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  Ethiopian Airlines is planning to further its fleet and expand its network in 2015, enabling the flag carrier to widen the gap with other leading African carriers. Ethiopian Airlines has already become the largest airline in Africa based on fleet size and could overtake South African Airways in 2015 as the largest based on passengers carried.
  Ethiopian Airlines has doubled in size since the beginning of the decade. Asia and Africa have been, and will continue to be, the primary drivers as Ethiopian Airlines taps into the booming Asia-Africa market.
  Ethiopian Airlines is one of the only four airlines in Africa with over 5 million passengers annually. It is also one of the only four airline groups with a fleet of more than 50 aircraft.
  Ethiopian Airlines surpassed the 5-million-passenger mark for the first time in the fiscal year ending June 30, 2013 (FY2013), when the governmentowned flag carrier transported 5.22 million passengers. Passenger traffic reached 6 million in FY2014 fueled by 15-percent year-on-year growth. Passenger traffic has more than doubled since FY2009 and has grown at a double-digit clip over the last six years.
  The fleet operated by Ethiopian Airlines currently consists of 69 aircraft, comprising 60 passenger aircraft and nine freighters. This also makes Ethiopian Airlines the largest single carrier in Africa.
  Ethiopian Airlines plans to roughly double its fleet over the next 10 years, enabling it to maintain its status as Africa’s largest airline. Ethiopian Airlines has already more than doubled its fleet size over the last five years. At the end of FY2009 Ethiopian Airlines’ fleet consisted of only 34 aircraft, with 29 passenger aircraft and five freighters.
  In Africa, Ethiopian Airlines in 2014 launched services to Kano in Nigeria and resumed services to the Seychelles. Further regional growth is expected in 2015.
  Ethiopian Airlines has also reportedly been discussing acquiring a strategic stake in the government-owned flag carrier RwandAir and launching a new joint-venture carrier with the Government of South Sudan. If finalized, both deals would cement the carrier’s leading position in the East African market. Over the past year Ethiopian Airlines also discussed potentially establishing a joint-venture airline in the Democratic Republic of the Congo, which would serve as the group’s hub for Central Africa.
  Besides, Ethiopian Airlines already has a 40-percent stake in Togo-based ASKY Airlines and a 49-percent stake in Malawian Airlines. It helped launch ASKY in 2010 while Malawian was launched in January 2014 as a joint venture with the Malawian Government.
  Ethiopian Airlines’ willingness to develop aviation across the continent is noteworthy. On several measures Ethiopian Airlines has quickly emerged as Africa’s leading airline. Perhaps most significant is the group’s still evolving role in setting up joint ventures throughout Africa.
  Ethiopian Airlines still faces challenges and obstacles in its quest to again double in size over the next 10 years. But the flag carrier enters the next phase of its development with a level of scale and efficiency that is rare in Africa. Its achievements over the last several years in a market, where most others have struggled, put Ethiopian Airlines in a strong position to cash in on the growth and vast potential that Africa offers.

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