Ethiopian Airlines coping with surging fuel price

Addis Ababa, Ethiopia – The Ethiopian Airlines said that it was forced to design and implement a new cost saving strategy as the price of fuel is drastically increasing at the global level affecting the aviation industry.

Public Relations and Publications Manager Wegayehu Terefe told The Ethiopian Herald that as the continuous and uncontrolled increase in the price of oil has posed a big challenge for the global aviation industry, including the Ethiopian Airlines, it was forced to design and implement a new strategy to minimize its running costs.

Wegayehu said that the skyrocketing price of fuel has led a lot of big airlines to bankruptcy. She also indicated that the Ethiopian Airline’s fuel expense has increased by 99 per cent compared to last year showing 4.1 billion birr increment.
Employees of the airlines have rallied behind the cost saving initiatives including offering of extra time working beyond the usual hours, she added.

According to her, the Ethiopian Airlines has been registering impressive growth despite the huge challenge posed by the fuel price hike due to its effective management and commitment of its employees. “After successfully completing its Vision-2010, Ethiopian once again designed a 15-year strategic road map “Vision 2025” to strengthen its position as the leading African airline, Wegayehu said.

Accordingly, the airlines has successfully completed the first year of its “Vision 2025” pursuing its fast growth strategy. In 2010/11, Ethiopian Airlines registered 30 per cent increase in revenue. The growth has continued in 2011/12 achieving 50 per cent revenue growth in its six- month performance (July-Dec 2011), she added.

Wegayehu also pointed out that this exceptional achievement makes the Airlines the fastest growing airlines in Africa and applauded by many of its supporters and continued to get coverage by major media outlets.

The strong work culture of its employees had enabled Ethiopian to overcome challenges previously. “The current challenge is no different. Employees of the airline and its management are determined to overcome the challenges with full commitment and dedication to increase productivity in order to maintain its leadership in Africa,” she underlined.

“Contrary to this fact, some local print media are disseminating unfounded information in relation to the measures that Ethiopian Airlines has been taking during this critical period. The information is baseless and is aimed at defaming the airlines. It would like to reaffirm to the general public that it is successfully managing its operations and registering fast growth as projected in its ”Vision 2025” strategy,” she said.

Ethiopian Airlines, one of the largest and fastest growing airlines in Africa, made its maiden international flight to Cairo in 1946 and now provides dependable services to 65 international destinations spanning four continents.

Ethiopian has become a member of the Star Alliance which is a leading global airline network offering customers with convenient worldwide reach and a smoother travel experience. The Star Alliance network offers more than 21,000 daily flights to 1,290 airports in 189 countries.

Ethiopian is a multi- award winner for its commitment and contributions towards the development and growth of the African aviation industry and in recognition of its distinguished long-haul operations enhanced by the introduction of new routes and products.

According to EH, in the recent past, Ethiopian received the 2011 AFRAA award for being consistently profitable over the years and has won the “African Cargo Airline of the Year 2011 Award” for its excellence in air cargo. It has also won the NEPD Transport Infrastructure Excellence Awards 2009 and the “Airline of the Year 2009 Award” from the African Airlines Association (AFRAA).