These African airlines are positioned to emerge winners from COVID-19 crisis

African airlines have faced unprecedented challenges due to the COVID-19 pandemic, with many struggling to stay afloat amidst the turbulent economic conditions. However, Ethiopian Airlines and South Africa's Airlink have emerged as standout winners during these trying times. Derek Konseko, MD of Ifly Global Aviation, highlighted the remarkable resilience and adaptability of these airlines during a recent interview on CNBC Africa. Despite facing significant revenue losses, Ethiopian Airlines managed to turn a profit of $44 million in the first half of 2020, showcasing its agility and innovative approach to the crisis. One key factor that set Ethiopian Airlines apart was its swift pivot to cargo operations, converting passenger aircraft into freighters to meet the growing demand for cargo services. This strategic move not only helped the airline maintain its financial stability but also positioned it as a leader in the African aviation industry. In contrast to many government-owned airlines that rely heavily on bureaucratic processes and government intervention, Ethiopian Airlines' corporate setup and efficient decision-making processes enabled it to weather the storm without resorting to layoffs or bailouts. By focusing on its core strengths and seizing market opportunities, Ethiopian Airlines has cemented its position as one of the most profitable airlines in Africa. The departure of South African Airways created a significant void in the regional market, allowing Ethiopian Airlines to expand its presence and become the third largest airline in Africa in terms of capacity. Additionally, other privately owned airlines in South Africa, such as Airlink and FlySafair, have also capitalized on the changing landscape by venturing into international routes and forming partnerships with major carriers like Emirates and Qatar Airways. These strategic alliances have not only boosted the airlines' competitiveness but also opened up new growth avenues amidst the ongoing crisis. As the aviation industry continues to grapple with the challenges posed by the pandemic, the role of government-owned airlines has come under scrutiny. While governments play a crucial role in creating a conducive environment for airlines to operate, the interview with Derek Konseko raises the question of whether governments should divest from the aviation business and focus on regulatory and policy frameworks instead. By striking a balance between public sector involvement and private sector innovation, African airlines can navigate the current crisis and emerge stronger in the post-pandemic era. The success stories of Ethiopian Airlines and Airlink serve as inspiration for the broader aviation industry, highlighting the importance of adaptability, efficiency, and strategic partnerships in overcoming adversity and achieving sustained growth.