The managing director International services of Ethiopian Airlines, Esayas WoldeMariam Hailu is a man with vast knowledge of the Aviation industry.
As MD of International services, Esayas heads and directs the development and coordination of sales, services and operations of all international flights and field office of the airline group activities, objectives, policies, procedures, plans and programmes.
In this interview with Nigerian Journalists at the corporate headquarters of the airline in Addis Ababa, Ethiopia, Esayas speaks on the airline’s contribution to the Nigerian aviation and economy, challenges of running the airline, open sky for Africa, choice of Ethiopian airlines aircraft types, cost of training a pilot and an engineer, position of Nigeria as regards market share and earning, among other things.
Franklin Ihejirika who was part of the media team reports
Excerpts
In what ways would say that ET has over the years contributed to Nigeria aviation and economy and that of Africa continent in concrete terms?
As a Pan-African Airline, serving our beloved continent Africa has always been a source of pride for Ethiopian Airlines.
With this commitment, Ethiopian has been able to create a missing link; availing easy movement of Africans from one corner to the other.
During the temporary closure of Abuja Airport for reconstruction a few months ago, we were the first foreign carrier to land at Kaduna Airport, allowing our passengers to experience ultimate comfort on-board our B-787 Dreamliner.
In line with our long term strategic roadmap, Vision 2025, expanding and availing a more efficient intra-African network will remain at the core of our operation and we shall keep on playing the positive role in catalyzing the socio-economic development of our continent. In Nigeria, we fly to Abuja, Lagos, Enugu, Kano and Kaduna
Ethiopian Airlines maiden flight to Nigeria dates back to the 1960’s; same time the country got independence from foreign colonization.
What for you is the most challenging aspect of running ET in global aviation industry and changing economy?
The competitive environment is not conducive for African Airlines in general .
The major challenges are:
Uneven playing field
High fuel cost
High taxes and navigation fees
Poor Infrastructure among others….
Despite the challenges, ET managed to remain successful, being the fastest growing airline in Africa.
Beyond rhetoric’s how ready are African states to embrace open sky for Africa and what efforts is Ethiopian airlines making to actualise the implementation of that policy ?
As far back as 1999, 44 countries agreed in Yamoussoukro, Côte d’Ivoire (the Yamoussoukro Decision) to deregulate air services and promote the opening of regional air markets to transnational competition.
Since then, however, implementation has been slow and inconsistent.
Industry experts often criticize African countries for having more bilateral open sky agreements with partners outside the continent than with African partners.
Ethiopian along with African Union, AFCAC, AFRAA and all African carriers are lobying for the implementation of the Yamoussoukro Declaration (YD) that is geared towards a comprehensive reform of the air transport industry and the unification of the fragmented African air transport market.
The Yamoussoukro Declaration is an African Civil Aviation Policy geared towards a comprehensive reform of the air transport industry and the unification of the fragmented African air transport market. To make this happen, Ethiopian is trying hard to the full liberalization that makes Africa as one sky. This will in return help Ethiopian to boost its market within African more than ever and breaks the gap in 100 percent.
Knowing that it cannot go it alone how is Ethiopian working to support other African airlines to erode the market already dominated by European and Middle East carriers in the region?
In November 2016, AFRAA declared Ethiopian Airlines the best in Africa for the fifth consecutive time, recognizing, in part, its “exemplary” cooperation with other African carriers.
It has embarked on an ambitious development program, which includes promoting travel hubs in East and West Africa with regional partners.
Other airlines such RwandAir are following suit, indicating that, with open skies and fair competition, African airlines can successfully find their way to profitability.
What has continued to inform the choice of Ethiopian airlines aircraft types and does environmental factor and fuel utilization in any way play a role in your choice of aircraft?
In line with this, the following are our values for selection and operation of our fleet: Young, Modern, New Generation, State-of-the-Art aircraft that are fuel efficient, with less than five average years, Right–sized fleet that best fits the airline’s projected traffic and route network, Suitable aircraft for point-to-point service delivery by availing more frequencies and creating seamless and convenient connections, Products that gives ET the competitive edge both in existing and new markets, Comfortable and pleasant on-board services for our passengers by providing the best and high standard passenger amenities and in-flight services;
By ensuring fleet type commonalty as much as possible – reduce maintenance cost, increase common crew type rating, and decrease spares holding
Highest standard in technology and maintainability to ensure aircraft airworthiness and safe operation
Environmentally friendly fleet with low emission.
How much does it cost to train a pilot and an engineer (separately) in the Ethiopian academy and in terms of finances what does the academy contribute to the general finances of the airline?
Training fee for Commercial Pilot Training Program
USD $68,000.00 for the entire 20 months program. The training fee includes:-
Training material , uniform and training aids,
Accommodation Expenses; and
Monthly Pocket Allowance of ETB 2,960
In all the countries you operate in and from, what position does Nigeria play as regards your market share and earning?
Even since our maiden flight to dates back to the 1960’s, Nigeria has been an ally for us.
Flying to five Nigerian cities, we have been serving the Nigerian market.
Ethiopian airlines has been frugal in managing the countries resources and have succeeded for decades, how has the airline managed to survive despite other national carriers in Africa sinking?
We are very confident that we know Africa better than anyone because we have been serving the continent for the last 70 years.
Dedication and Commitment
Existence of uniquely dedicated and highly committed work force led by experienced and seasoned executive management and board of Directors.
Highly skilled and dedicated employees – we have a dedicated and skilled workforce highly perused for employment even by our competitors.
Self-sufficient in training of aviation personnel, who embody the values and spirit of Ethiopian Airlines, through our aviation academy.
Developing strong Leadership Team
Team which can cope with the Volatile, Uncertain, Complex, and Ambiguous type of operating environment.
Connectivity
Efficient network of connectivity based in a strategically advantageous located hub which enables us to connect Africa with the rest of the world better than anyone else.
Ethiopian has positioned vast Intra-Africa network better than any Airline, making its customers available with the best connection with minimum layover in Addis.
Ethiopian has multi-hub strategy: one of Ethiopian strategies is to have multiple hubs in Africa connecting it with our main hub, Addis Ababa, as well as hub to hub connections. Next to the main hub, Ethiopian has established its second and third hubs in:
Lomé (Togo) in partnership with ASKY Airlines:
The third at Lilongwe, Malawi with Malawian Airlines:
Ethiopian is a customer-focused airline: which offers to business travellers to and from Africa the most convenient connectivity options, on-board the most modern and most comfortable aircraft.
Latest State of the art Aircraft. Ethiopian is a Pan-African global carrier operating 95 youngest fleets in the continent with an average age of less than 5 years, which is under the industry average age and currently serving more than 100 international Passenger and Cargo destinations across 5 continents.
Member of Star Alliance; Ethiopian, being a Star Alliance member, offers its customers with multiple connections.
Ethiopian Frequent Flyer Program: offers passenger to accrue miles for boarding on operating airline for code share flights among Star Alliance partner Airlines even when the traveler has made reservation with another airlines flight number. And the passenger is a beneficiary in using Star branded own lounges upon Star Alliance lounge access policy.
What is the model used, especially in terms management
Team which can cope with the Volatile, Uncertain, Complex, and Ambiguous type of operating environment. Highly skilled and vigilant management skilfully navigating through difficult situations.
Existence of uniquely dedicated and highly committed work force led by experienced and seasoned executive management and board of Directors.
The liberalisation of air transport is one policy your airline has pursued vigorously; don’t you think leaders in the region should apply restraint?
Liberalisation of air transport has been proved to be the best way to bring about high traffic volume, economic growth, free and fair market competition among carriers.
Since this policy is advisable and very useful, governments are not encouraged to put restrictions on this as liberalization helps carriers to optimize networks within the cross continental market.
What airline model of a national carrier would you suggest for Nigeria?
As for Ethiopian, its direction is clear: “Fast, profitable and sustainable growth is the underlying management philosophy at Ethiopian and it is in this vein that it has outlined a long-term vision that will transform the airline to a leading aviation group in Africa by 2025. Nigerians can emulate this best practice for the betterment of their airline.
Though Ethiopian is full owned by the Government of Ethiopia, it is fully managed by highly experienced aviation professionals with an average service year of more than 25 and 30 years. This clear disparity between ownership and management is attributed as one of the key factors for our sustainable success.
African aviation is a small and fragmented, how do we take advantage of the huge market in the continent?
African airlines have to sit and consult on the ways in which they work together to benefit from the huge market opportunity through cooperation and learning one from the other (experience sharing).
African airlines enjoy just three per cent of the market share while foreign airlines get the largest chunk. How can we address the in balance?
African airlines should sense this as a serious threat as it is impacting all of them, not only one or two airlines. Therefore, they have to integrate their transport policies and strategies so that they can jointly work together through different code sharing strategies, as well as cooperation’s and alliances.
Improving their air transport share should be central at the continental agenda for Africans. By doing so, they can maximize their existence in the sky of Africa. Otherwise, the existence of Africans in their own sky will be a fable if things perpetuate in this way.
To what extent has Ethiopian airlines met its projections in the area of revenue, fleet, route expansion and others?
Target Vs current Performance (2016/17 Performance in numbers)
22 million passengers – 8.8 million Passengers
820,000 tons of cargo – 338,846 tones
USD 10 billion annual Revenue: USD 2.7 Billion
USD 1 billion annual Profit: USD 232.8 Million
Fleet – 140 aircraft – 95 in service & 61 on order (less than 5.0 years average fleet age)
120 international & 26 domestic destinations: (Passenger & Freighter): Over 100 international destinations.
Employee: More than 12,000 permanent & 2000 contract employees
What do you think African governments can do to improve aviation growth and development in the continent? More especially as it concerns the collapse of most of the continents national carriers?
First, African governments should bring this serious agenda to their conferences, meetings, consultations and should device short and long term plans to tackle the challenges.
Experience sharing and benchmarking good aviation models comes next. After that, adapting the best calculated practice to their reality and implementing them can be a solution.
Despite the challenges in Nigeria’s aviation industry, Ethiopian airlines has remained resilient and has expanded its routes. What is the attraction? And what’s your long term and short term pans here in Nigeria?
As Ethiopian is a Pan-African Airline, serving our beloved continent Africa has always been a source of pride for us and it will ever be.
In line with our long term strategic roadmap, Vision 2025, expanding and availing a more efficient intra-African network will remain at the core of Ethiopian and we have to play the positive role in catalyzing the socio-economic development of our continent.
