Ethiopian Airlines plans to build $5bn airport as part of its expansion drive

According to a senior government official, Ethiopian Airlines’ operating revenue jumped nearly 30 per cent in the year to July 31 2019, boosted by a surge in passenger numbers. Also, the airline revealed that it plans to build a $5 billion airport that could be able to handle 100 million passengers a year. Miretab Teklaye, Director of Integrated Marketing at Ethiopian Airlines joins CNBC Africa for more.

Tue, 11 Feb 2020 15:07:13 GMT

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AI Generated Summary

Ethiopian Airlines' success in achieving Vision 2025 goals ahead of schedule has paved the way for ambitious Vision 2075 targets, positioning the airline for unprecedented growth.
The airline's robust operating revenue, which surged by nearly 30% in the year ending July 31, 2019, highlights its profitability and resilience in a challenging industry landscape.
Ethiopian Airlines' strategic focus on long-term planning, diversified business model, autonomy in operations, and employee engagement sets a benchmark for sustainable growth and profitability in the aviation sector.

Ethiopian Airlines, one of Africa's leading carriers, recently unveiled its ambitious plans for the future during a CNBC Africa interview with Miretab Teklaye, the Director of Integrated Marketing at the airline. Teklaye highlighted the airline's remarkable growth over the past decade, noting significant achievements in passenger numbers, fleet size, and destinations served. Ethiopian Airlines has not only met its Vision 2025 goals ahead of schedule but is now setting its sights on Vision 2075, aiming to become the largest aviation group and a top 20 global airline. The success of the airline can be attributed to several key factors, including government support, experienced management, dedicated employees, and strategic planning. Teklaye emphasized the importance of long-term strategy, dynamic management capabilities, and a focus on the airline's four pillars of success. These elements have enabled Ethiopian Airlines to stand out in the competitive aviation industry and drive robust growth. In the fiscal year ending July 31, 2019, Ethiopian Airlines witnessed a nearly 30% increase in operating revenue, totaling $4 billion. The airline's profitable performance sets it apart as the only carrier in sub-Saharan Africa to achieve this feat. Teklaye credited the success to the airline's long-term planning, diversified business model, autonomy in operations, and high employee engagement. Looking ahead, Ethiopian Airlines has set ambitious revenue targets of $4.5 billion for the current year, signaling its confidence in continued growth. Additionally, the airline announced plans to construct a $5 billion airport, positioning itself as a key aviation hub in Africa. The new facility will not only enhance connectivity but also serve as a retail powerhouse, offering a range of services. Despite regional developments of larger airports in neighboring countries, Ethiopian Airlines views this expansion as an opportunity rather than a threat. With African carriers holding a minority share in the market, there is ample room for growth and collaboration to bolster the continent's aviation industry. Ethiopian Airlines aims to lead this charge by establishing strong partnerships and capturing a significant market share. The airline's commitment to elevating African aviation and fostering sustainable growth underscores its position as a trailblazer in the industry. As Ethiopian Airlines propels forward with its expansion drive, the $5 billion airport project symbolizes a bold step towards shaping the future of air travel in Africa.