Ethiopia's Economy
Ethiopian Airlines: An African Success
How state-owned Ethiopian Airlines became Africa's largest and most profitable airline, using Addis Ababa as a hub linking Africa to the world.
Ethiopian Airlines is Africa’s largest airline.
History
Founded in 1945, it is state-owned but run commercially.
Hub strategy
- Addis Ababa is a hub connecting African cities to Asia, Europe and the Americas.
- It flies to more African destinations than most rivals.
Success factors
- Professional management with limited political interference.
- Modern fleet.
- Training academy for pilots and staff.
- Cargo operations.
2019 crash
A Boeing 737 MAX crash in 2019 killed all 157 aboard, leading to the global grounding of the plane.
New airport
Ethiopia plans a huge new airport at Bishoftu.
Lesson
State-owned firms can succeed with commercial discipline.
The connecting flight
A traveller from Lagos to Mumbai flies via Addis Ababa on Ethiopian Airlines.
Thinking state firms always fail
Ethiopian Airlines succeeds with commercial management.
Key takeaways
- Ethiopian Airlines is Africa's largest.
- Addis Ababa is a key hub.
- Commercial management drives success.
- A 2019 737 MAX crash led to a global grounding.
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