LETTER: Transit route gives Ethiopian Airlines advantage

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The carrier has prospered due to its location in Africa, rather than operating in a regulated market

Passengers disembark from an Ethiopian Airlines aircraft. Picture: REUTERS

In fact, Ethiopian Airlines only operates to a small extent in a regulated market, mainly within Ethiopia. Its principal business is transit passengers, similar to the likes of Emirates and Turkish Airlines, and it has built a business model similar to that of these airlines. It helps, of course, that large organisations such as the AU Commission and the UN Economic Commission for Africa are headquartered in Addis Ababa.

When Ethiopian Airlines introduced flights between Addis Ababa and Johannesburg the route was shared between it and SAA, but SAA soon dropped that route . Ethiopian originally had four weekly flights on single-aisle planes, then daily flights, and in recent years three daily flights, one using a large-plan Boeing 787 or Airbus 350. And those flights were full, with 80%-90% being transit passengers.

 

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