Ethiopian Airlines plans to double fleet to leapfrog other int’l carriers

Addis Ababa, December 13, 2022 (FBC) – Ethiopian Airlines Group wants to almost double its fleet over the next 12 years and expand its global network as Africa’s largest carrier seeks to better compete with other international carriers linking passengers between Asia, the Americas and Europe, according to Bloomberg’s report.

The state-owned carrier — Africa’s largest airline — is looking to increase its number of planes to more than 270 by 2035, compared with 140 now, and fly to more than 200 airports across the world, according to new Chief Executive Officer Mesfin Tasew.

According to the CEO, the strategy could generate annual sales of $25 billion from commercial and freight operations if things go as planned, up fivefold on 2021.

“We are well positioned to continue growing profitably, expanding our network and competing in the global arena,” Mesfin said in an interview, about nine months after replacing Ethiopian’s long-term head, Tewolde Gebre-Mariam.

The CEO’s plan would represent a new phase of growth for Ethiopian, which dominates other African flag carriers while under increasing pressure from the likes of Qatar Airways and Emirates, which are growing on the continent.

The group is also trying to expand by creating new national airlines, for example in Nigeria, and developing partnerships in several other countries.

Ethiopian has formed its own joint ventures or partnerships in several African countries, including Togo, Malawi, Chad, Zambia and Mozambique. Additionally, the airline won a contract to set up a national airline in Nigeria and is in talks with the government in Democratic Republic of the Congo about a similar venture.

Nigeria, Africa’s most populous country with more than 200 million people, is seen as a largely untapped aviation market as it doesn’t have a flagship carrier. The new national carrier, dubbed Nigerian Air, is expected to start operations in the first quarter of 2023, Mesfin said, legal hurdles allowing.

“When we partner with other stakeholders to set up airlines at other locations in Africa, our primary goal is not to earn a dividend from the airline,” Mesfin said. “It is to set up a partner airline who can work with Ethiopian Airlines in feeding each other.”

Ethiopian sees its revenues growing by 20% in the coming fiscal year ending in June 2023 from the $4.8 billion it made last year, with a profit target of $600 million on increasing passenger business, Mesfin said.

However, amidst its ambitious plans to build a $5 billion new airport mega project – projected to handle as many as 100 million passengers a year – the construction is two years late and yet to begin due to some complications over the land ownership, the CEO said.