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'Ethiopian Airlines is Africa's First Carrier'

This Day (Lagos)
INTERVIEW
July 15, 2005
Posted to the web July 15, 2005
Lagos

Country Manager of Ethiopian Airlines, Mr. Esayas Woldermariam Hailu, tells Nnamdi Duru how the government-owned airline pioneered aviation business on the continent and presently operates the largest network.

How long has Ethiopian Airlines been in business in the country?

Ethiopian Airlines started flying in Africa and the rest of the world since 1946. This makes it 60 years of sustainable, non-interrupted, continuous operation. This means we can fairly say that the Ethiopian Airlines is 60 years young.

As far as the Nigerian operation is concerned, we came in 1961 after the British left in 1960. So we are 44 years old in Nigeria.

How has it been all these years?

All those years have been a challenge which has been met by our company. When we started flying in Nigeria from East Africa to West Africa, there was no airline taking passengers across the continent except passengers have to go to Paris or Rome on the European carriers and come back to East Africa on another European airline.

To have it on record, Ethiopian Airlines is the very first African airline to start flying in the air. We are pioneers of African aviation and we had a mission of bringing Africa together at that time. We are proud to say that we have bridged the gap between the different African cultures, civilisations, economies, people and nationalities.

We have about 27 destinations in our continent, Africa which network is the vastest in the aviation history in the whole of the planet. No other airline has such an extensive network and destinations in Africa, be it American, European, African or from anywhere.

So, having discharged our civic obligation to our home continent by bringing Africa together, we are accomplishing our task of linking Africa to the rest of the world and bringing the world closer to our home, Africa. Our destinations extend from Washington DC to Beijing, North America, Europe, Gulf, Middle East, Asia and Africa. Except Latin America and Australia, we cover all the continents in the world.

From Europe, we fly to Stockholm, London, Amsterdam, Paris, Rome, Frankfurt. From the Gulf and Middle East, we fly to Jeddah, Dubai, Tel-Aviv, Beirut and so many other destinations. From Far East, we go to Hong Kong, Beijing, Gwanju, Bombay, New Delhi, Bangkok, etc.

How would you convince an intending passenger to fly Ethiopian Airlines?
So far, we have a daily flight. Everyday, we are in Nigeria and we bring in and take away passengers from Nigeria to the rest of Africa and the world. Our operation in Nigeria is in tune with the Bilateral Air Services Agreement (BASA) between the two sister countries, the Federal Republic of Nigeria and the Democratic Republic of Ethiopia which relationship has been so cordial. The daily flight is in the liberalised spirit of the Yamassoukro Decision which African nations convened to liberalise African skies for African airlines.

We have a healthy competition by our side, we have other carriers operating along with us and we see it as a good challenge. The more we are, the merrier because when you have a healthy competition by your side, you will keep on improving on your fares, services and ultimately, consumers of the transport services are the ones to benefit and there will be no monopoly. Now, the pleasant surprise is that Virgin Nigeria has also come up which is going to be accorded the same kind of privileges by the Ethiopian government.

What is the ownership structure of the Ethiopian Airlines?
Ethiopian Airline is wholly owned by the Ethiopian government and operated and managed all by Ethiopians, from the Managing Director to pilots to instructors, flight engineers, cabin executives, finance and marketing executives to the person sweeping the floor. Everybody is an Ethiopian

Is everybody working here an Ethiopian?

Of course, in each country that we operate, we take the country's labour. What I talked about earlier is the headquarters.

What are the other areas of operation of the airline?

Ethiopian Airline is not engaged in transporting passengers and cargo from point A to point B, it is a full aviator. We are into maintenance, training, catering, airport handling and airport management. We have all the variety of services and we don't consume them ourselves alone, we also sell them to others. We maintain aircraft for our own services and to many African airlines and those of other countries. They bring their aircraft to Ethiopia for over-hauling of engines, maintenance and checks. To give you instances, from Nigeria, ADC and Chanchangi are coming, Kabo and the former Nigeria Airways are our clients in the area of maintenance.

What can you say is your niche or advantage over other airlines?

Our advantage over others is our experience, flying for sixty years is an experience. Flying comes naturally to us and we know our customers by heart. The services that we render to other airlines and for ourselves for example, our pilots are professionals and we train pilots for other airlines in Africa.

These things are advantages for us because our maintenance is of the highest level of the Federal Aviation Administration standards from America. They come every year to inspect our facilities and renew our licenses. Our safety record is good and the best and our training is very good and our flying experience as well. The way we manage our customers and we micro-manage relationship between us and our customers. These I suppose are our strongest points.

How lucrative would you say your Nigerian route has been?

Regarding profit and loss issue, because we operate a global accounts at the headquarters, I may not be having the figures handy but I can tell you that the traffic from last year to this year has reduced a little bit and it has its own explanation. This year, we have more airlines operating by our side, new entrants are in the market and until the market stabilises and everybody gets used to it, it should be taking sometime.

What is the Nigerian route's contribution to the total profit of the airline?

I wish I could have it. The Nigerian branch of Ethiopian Airlines has got also a higher cost component, like the over flying and navigational route charges for Nigeria is one of the highest that I have observed; higher than some other places. The rent for airport facilities, parking, landing and aero bridge uses have increased, they are a little bit on the high side.

So, the traffic is good, Nigeria is one of the good routes for Ethiopian Airlines. Dubai, New York, India, China and Nigeria, these constitute the first five.

Would you make a comparison between Ethiopian Airlines and other airlines in Africa?

Sometimes, comparison might not be fair because we can be comparing oranges with apple. Each and every airline has got its own unique product differentiation and placement that it can be identified with. It should be the customers that would judge those operating in the industry. We wish each other success, so it is best for the customers to comment and compliment us rather than we having to compliment ourselves.

Recently some American and some European countries closed their embassies in the country. How did this affect your business?

Not really. This thing is a matter of two to three days. Usually passengers procure their visas weeks in advance before they travel. The ones that we were lifting were those that procured their visas, may be, three to four weeks back. So, embassies' closure might not have any effect on our business.

What were your customers reactions to the closure of embassies?

First of all, the news stated that the embassies that were not available for customers for a few days were those of the Western countries. Usually, much of our traffic is within Africa and Asia, that is our natural geographical location. It is only in the peak seasons that the European carriers are filled up that the spill over comes to usss. So, the closure of these embassies might not have anything to do with us.

Two aircraft owned by Chanchangi and EAS were involved in minor incidents in the country, what is your reaction to this?

Well, it is not easy to comment on these because I have not read the analytical report of the regulatory body, the Nigeria Civil Aviation Authority (NCAA). When I read it, I will be in a better position to comment on it whether it is a human factor or facility factor. I don't know anything about it for now.

The pilots involved were unilaterally suspended by the Aviation Minister. What is the implication of this?

Again, it is not something easy to comment on because if that particular airline which had its pilot suspended has recruited more pilots, when one is suspended, they will use the others before the replacement of the license of the suspended pilots. So it depends on how many pilots an airline has. Of course, if you have only one pilot and he is suspended, it will affect your business.

Virgin Nigeria has commenced operations, what is the implication of this development on your business?

As I said earlier, it has both plus and minus for any airline when a new entrant joins the market. Plus because the more airlines that are there, the more they will serve as checks and balances on each other and the more they will refine their products and services. They will also offer competitive fares and services to consumers. The minus could be the more they are and if the resources and traffic are limited, they will be sharing it among themselves but from what I see, the plus is more than the minus.

What about your insurance, where and how is it handled?

Our insurance is a global account, it is International Civil Aviation Organisation (ICAO and Federal Aviation Administration Standard compliant and it includes all other coverage especially now that terrorism is a new phenomenon in the world. The premiums are getting higher and higher because of all these kinds of new things occurring and affecting the industry.

So insurance is the biggest cost component that we have, second to fuel. That we have to contend with because as a matter of fact, it is something regulatory or mandatory, we have to fulfill that obligation at whatever cost.

Insurance coverage passengers' losses, how is Ethiopian Airline handling this?

Well, missing flight, International Air Transport Association (IATA) and different recognised economic unions like the European Union (EU) and others have their own policies and procedures on how to handle delayed flight compensation, denied boarding compensation, missing flight, cancellations and all these things. Ethiopian Airlines abides by all these rules. We are going to comply with whatever rules of the land say and whatever is binding within the regulatory environment that are there from IATA or ICAO. It is already in place and we are already fulfilling them.

How would you rate the Nigerian aviation industry?

Well, it is very vibrant and active, the Nigerian aviation industry is forward looking, fast growing and bold. It might have its own explanation. First of all, Nigeria is a home to the largest black community on this planet, so the more people, the more for the need for movement. And Nigerians by their nature are very active and mobile and the country has resources. It means the country has money and businesses are vibrant, so many people from different parts of the region, continent and the world have one thing or the other to do with Nigeria, either they buy or sell. Because of that, we have observed that Nigeria has the biggest aviation sector in Africa.

From what I see, about 26 international airlines and close to 4 domestic and regional airlines are operating here. This is the highest number in Africa, to the best of my knowledge.

How would you rate the facilities here?

Whatever is required to fly aircraft, to land and depart safely are in place and the regulatory authorities are very much conservative, strict and stringent on safety, from what I see. These are to the advantage of both operators and the traveling public because whatever rules are there by ICAO standards, Nigeria being a signatory and member has to fulfill them. The rules are meant for a purpose and safety and in every body's interest. So, it is better for all involved to observe these things.

What are some of the observations you would make on the way forward for the industry?

As far as facilities are concerned, I have just one remark, it is about flight marshaling. When flights come, people who marshal and park these flights need to be in place. That one, in other places that I have worked, the airport authorities provide that facility, it is usually done by a civil aviation licensed Flight Marshal. Here in Lagos, flight marshaling is not provided by the aviation authorities, rather each and every airline has got its own Flight Marshals and whether these people have taken training and were licensed or not, I don't know. So if that one is put in place, it will be a good thing.

Source:
All Africa