ETHIOPIA
The new east african land of opportunity










Mr NigatuLogo Ethiopian Airlines

Interview with

Mr. Bisrat Nigatu
Chief Executive

February 9th, 1999

Contact:
P.O. Box 1755
Addis Ababa - Ethiopia
Tel: 251 1 61 22 22
Fax: 251 1 61 14 74
Wesite: http://www.ethiopianairlines.com
Ethiopian airlines is one of the most modern and efficient airlines in Africa, for flying to over 40 International and 33 domestic destinations, so could you give to our readers a brief background of your company?

Well Ethiopian Airlines is now around 53 years , mainly regards itself as an African Airline because of it's wide network cover within Africa, so primarily we started out as an African airlines and still our main operational philosophy which is a development philosophy , mainly revolves around this African operation base, so whatever we try to do is Africa and the rest of the world. Like Africa - Europe, Africa-middle east, Africa-Asia, and now Africa -north America. So we are trying to do this through the Addis Ababa hub which has been successfully developed over the last 53 years.

One feature of Ethiopian Airlines I should point out is that it is an Airlines which believes in self-reliance, and we have built an internal capacities of human resources developed over a large period of time and self sufficient in the area. In addition to the human resources development effort, we have been very effectively insuring the development of transport of technology to the airlines which is an evidence s. In addition we do also maintain for other airlines as well .

How do you evaluate the role of Ethiopian airlines in Ethiopian development?

Ethiopian airlines is the key player, has always been the key player in the socio-economic development of the country. I think you cannot find that in many Airlines either in the third world or even in the 1st world which operate as many domestic destinations as we do, we cover more than 35 domestic destinations but that is very extensive and we have done this without fair for several decade and this is vital and important for this country because of the Geography. So well developed world network, so in connecting people, the peoples in nations of the countries as well as in assisting the development of trade among themselves, and of course taking the tourist to the country and to the tourism sites.

But in connection with your development in tourism , there is a gap between Ethiopia Development & Ethiopian Airlines development.

Unfortunately because of our nation's history ,on the last two decades infrastructural development has not been to the desired level, not only for tourism but also in other areas. Tourism infrastructure has lagged behind compare to the development of the air track ,we have been seeing a faster development in comparison ,particularly by way of the private sector ,could the infrastructure development as well as the government preparing ,opening up more developing airfields & building more termination, .

The rule of the private sector in Ethiopian Airlines?

Well in the Domestic field the government has already taken steps earlier and has allowed the public sector to invest in domestic air transport so the private sector is welcome, in fact it is quite a lot of challenge for us to do it alone. It took us so many years in such a vast country .As far as the role of the private sector on the International scene is concerned ,it has not yet opened up in that area but I am sure in the near future the government would further articulate it's policies.

The airlines in International freight is not so well developed, what was the reason for this ?

Well several reasons: the airlines volume of activities both on the freight side as well as on the passenger side, can not be totally deforced from the countries pace of development. It has been either lower or none existent for several years and foreign investment into the country has been the same way because of our history ,and so as such it is not only freight but the so called traffic, genuine to and from Ethiopia, has not fully developed to our satisfaction, despite that ,Ethiopian lands, operates two freighter that is roughly around 20% of its capacity or its activity ,and generates around the same volume of revenues, from the chair of revenue from the total amount, 20-23% of the total volume comes from freight. We see an increasing trend in the development of freight traffic, recently the flower exports also are encouraging the development in the field.

So the global trend of liberalization & regulation of the air transport industry has becomes now a reality, so what has been the impact of air transport globalization for Ethiopian Airlines?

Well any International carrier can't be an Island, operating such an industry of course to vote well varying degree, the impact of globalization and other development in the industry is going to impact the Airline. In the African markets in particularly in the Intra- Africa air transport services we have not felt that so strongly but we feel that unless we do the right things very soon we will be increasingly feeling the pressure from or the effect as a result of the airlines or mega carriers more and more focusing on Africa - so In order to prepare for this we are also in the process of discussing with the North America and the Middle East to form some necessary partnership.

Could you mention some partners?

We would not like to announce yet but we will do it in a very short period of time
Coming from Europe, or the States?

Europe, America, middle east and possibly Africa as well.

In which sectors of your activities are you going to have those partners?

According to us we would like to have partners for our Africa - Europe route & also for America - Africa route as well as for the Middle East gulf so we are basically discussing along this lines with potential partners

Being one of the number one Airline company in Africa could you mention some competitive advantages of Ethiopian Airlines when you have to compare it to other airlines?

We are certainly not the carrier with the most passengers or carriers with the most Airplanes, but in terms of provisional services we feel number one as a much wide network, we do it with fewer planes and we cover, provide very extensive & very dependable service, not many carriers could tell you that they provide and intra Africa services as we do. Well the company advantages are the one that I mentioned to you. As our human resources we have well trained and well experienced human resources, that has helped us a lot and that has helped the Airline maintain a certain level of service that is appreciated by the customers , the other is the consistency in which the airline has given short network , it has a total of some fourty six destinations, someone in Beijing could fly to Accra on our flight ,or from Bombay he could come to Johannesburg or from London he could take into Luanda, so this kind of city pair linkage throughout Addis Ababa hub is a very big strength and we fell it is a very high competitive advantage.

So could we say that now Ethiopian airline has contributed to bring to Ethiopia? To his place in Africa like a gate way to Africa

Increasingly so, because like currently we are telling our customers from North America that you come to Addis and we will take you to as many as 27 destinations which is the truth, they can come to Addis Ababa and they will be provided services to 27 destinations. So from everyone of our international destinations that you see on the map people could come to Addis which is a hub and they could travel to anywhere else in Africa. Now this is further strengthened by the currently planned infrastructural development here at Addis Ababa Airport as you know the new one we have been building to be finished in a few month. A new terminal construction has been started, there is more Airplanes and the Hotel Infrastructure is there ; for example: the Sheraton conference center, so really thing are taking right direction, this would contribute strongly towards in development of Addis Ababa.

Mr. Negatu readers always interested in new business opportunities, in which area of your activities precisely are you interested to attract partners or investors.

Mainly in the air transport business and of course secondly in our maintenance sector which is important source of revenue for us and we also have a lot of areas where we can cooperate with others, of course in the human resource development field because we have very high capability, in developing human resource. This Airline is capable of developing staff requirements in almost every area with the shortest time possible for it self as well as for others pilots, maintenance technicians, cabin crue all this are potential areas where any partners who would like to develop this resources with us is welcome.

Being as the centre of your country's devlopement in the transport sector , as a more global question, how confident are you in the future of your country?

Very much so perhaps I believe Ethiopia is in a better situation environmentally because it is an environment which is very convincing for investment, for travel, tourism, conferences. So I am very confident, in fact as I mentioned to you the commitment of the government in attracting foreign investors, tourists or business travelers, it is showing it with actions with multi-million dollar investment in infrastructure ,of course there are a lot of policy areas that we need to refine and improve, the visa policy but in the future there is a great potential for traffic development.

So now as a final issue, keeping in mind that we are reaching almost 900,000 readers what will be your final message to the readers?

Well I see those top manager readers as my potential customers and as a potential customer of the airline, I would like to bring their attention to a new in dependable and pioneering service that we started recently from the U. S to Africa. This is different and unique in the sense that it is the fastest way of reaching Africa. Because it does not require a lay over in Europe, you don't have to spend many time in hotels and with the risk of losing your luggage. You board our planes either in New York or Washington and you will be in Addis Ababa 16 or 15 hours later and you could connect anywhere in Africa. After that we feel this is the best way of visiting Africa, for leisure or business, and we are ready to provide them, dependable service, they can rely on us. They should give us a try and we look forward to bring them in our flights.


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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Ethiopia published in Forbes Global Magazine.
July 26th 1999 Issue.
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