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Ethiopian Airlines steps up hunt for African connections Influence: With a long-delayed African "open skies" revolution still mired in red tape, Ethiopian has been snapping up stakes in small carriers around the continent to pre-empt potential rivals and become the dominant pan-African airline.
He also said in May the airline was looking to set up carriers in Equatorial Guinea and Guinea through joint ventures.
There is huge demand. We are responding to it. The success or failure of Ethiopian's plan is being watched by long-haul competitors such as Turkish Airlines and suppliers led by Boeing and, more recently, Airbus.
Ethiopian's fortunes are also important for Prime Minister Abiy Ahmed's government, which has said it plans to sell a minority stake in the airline to domestic and foreign investors as part of broad economic reform pledges.
Ethiopian unveiled its year expansion strategy inand started small. Since May, Ethiopian has announced plans to launch an airline in Mozambique, relaunched Zambia's flag carrier, established a new airline in Chad to cover West and Central Africa and resumed flights to Somalia after a year hiatus.
Air traffic in Africa is forecast to grow 6 percent a year, twice as quickly as mature markets and faster than any other region over the next two decades.
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Ethiopian is hoping to snare a greater share of capacity on flights between cities in Africa, which are already percent controlled by African carriers, according to data firm OAG. In most cases so far, Ethiopian has taken minority stakes in "start-up" airlines and tried to implant its management culture, often in nations haunted by costly failures of state carriers.
Tewolde also wants to claw back market share on routes to and from the continent, dominated by Turkish and Gulf carrier Emirates.
This year, 61 percent of capacity to or from Africa has been controlled by non-African carriers, says OAG. There are big risks.
Ethiopian is spending tens of millions of dollars in some of Africa's toughest markets and the strategy of buying minority stakes to get a foothold abroad has failed spectacularly for some, such as Abu Dhabi's Etihad.
Analysts worry accelerated expansion may spread Ethiopian too thinly if traffic doesn't pick up fast enough at its new hubs in Togo, Malawi and Chad. The regional hubs are designed partly to channel customers to Ethiopian's main hub in Addis Ababa and so fill its direct flights to the Middle East and Asia.
There are also concerns that none is in a major African city. Lome is far smaller than west African cities such as Nigeria's economic capital Lagos, or Abidjan in Ivory Coast, while Chad's dusty desert capital is even smaller.
Yamlaksira Getachew, a management professor at Loyola Marymount University, warned Zambia's relaunched flag carrier could steal traffic from Ethiopian's existing southern African hub in neighboring Malawi.
Ethiopian has been forced to adopt the piecemeal approach to expansion because full air transport liberalization has failed to materialize, despite several attempts. In44 African countries signed the Yamoussoukro Decision in Ivory Coast's capital giving airlines freedom to ferry passengers between two foreign countries.
But the agreement was barely implemented as governments moved to protect domestic carriers. To try to revive the stalled process, 23 African governments signed another deal this year to forge a single aviation market. So far, Ethiopian's plan appears to be working.
It says it has clocked average growth of 25 percent a year since and expects to carry nearly Unlike many African rivals, it is also making money. It says Western banks are helping to fund plans to boost its fleet of planes, with 66 more on order.
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Highlighting the potential riches at stake, Chinese banks are involved too, partly reflecting Beijing's drive to build a new trade corridor to the Middle East and Africa, bankers said.The deal with Crystallex International Corp suspends the Canadian mining company’s push for a court-ordered auction of control of Citgo as a way of collecting on an arbitration award against.
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