Ethiopia creating new Aviation Holding Group – ATW

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Ethiopian Airlines Bole Airport File

ATW– The Ethiopian government will establish an Aviation Holding Group to oversee the country’s aviation-related interests.

According to a government statement, the holding firm would manage Ethiopian Airlines, its cargo and MRO services, Ethiopian Aviation Academy, Ethiopian Airports Enterprises (EAE), Ethiopian Inflight Catering Services, and Ethiopian Hotel and Tourism Services.

Ethiopian Airlines Group CEO Tewolde Gebremariam said, “The Ethiopian government took an important decision in paving the way for the formation of the Ethiopian Aviation Group as a holding company in line with international best practices, which will enable the transformation of all airports in Ethiopia to upgrade their services to global standards by leveraging the synergy with the successful business model and strategy of Ethiopian Airlines.”

The carrier’s home base, Addis Ababa Bole International Airport, is expected to become the best connecting hub in Africa.

The Ethiopian carrier reported average growth of 25% in the past seven years.

“Availability of a seamless customer-focused service defines the rule of the game in today’s hyper-competitive airline industry. The new formation will create common direction and strong synergy to improve services by eliminating waste and redundant activities,” Gebremariam said.

EAE will maintain its internal autonomy, its own brand and functions that play an important role in integrating the services of all stakeholders including airlines, immigration services, customs, security services and ground handlers, to ensure that all provide global standard airport services.

EAE CEO Tewodros Dawit called the new group “a step forward to improve the competitiveness of the Ethiopian Airlines’ hub by taking advantage of the proven record of fast and sustainable growth strategy.” EAE operates 23 airports.

The new structure is expected to allow Ethiopia to continue its aviation leadership in Africa.

Ethiopian Airlines, which has implemented a 15-year Vision 2025 strategic plan, is set to become the leading aviation group in Africa with seven business centers: Ethiopian Express & Ancillary Services; Ethiopian International Services; Ethiopian Cargo Services; Ethiopian MRO Services; Ethiopian Aviation Academy; Ethiopian Inflight Catering; and Ethiopian Ground Services.

In May, ATW reported Ethiopian Airlines plans to implement a “very heavy cost-cutting program,” targeting an annual cost savings of 10%-20% the airline aims to reach as soon as possible without having to reduce jobs.

23 COMMENTS

  1. Hello, Bolé!

    Well done! Knock down bureaucratic barriers! Ethiopia’s failure is NEVER an option! Now that the praise is over, I will resort to my usual self-appointed lobbying:

    1. Domestic International Standard Airports: Upgrade all domestic airports to international standards ASAP [and build new ones to international standards too!]

    2. Domestic-Regional Fleet: Boeing 737-800 for domestic/regional ASAP [slash domestic fares to suit Ethiopians too] and switch to Boeing-737–MAX 8 later.

    3. Fleet Streamlining: Trim the entire fleet to interchangeable, cost-efficient and versatile: A350-900, B777-300-ER, B777F, B787-8, B737 MAX-8 and B737-800. [Consider Airbus A330-300 too (short/long-haul, 277 to 440 passengers)].

    4. Limit Planes per Category [see #3]: Limit the number of planes per category in such a way that interchangeable planes save the day if Boeing/Airbus/FAA/EASA issue(s): “Ground the whole fleet of aircraft X effective immediately!”

    5. Addis Ababa’s Elevation & Take-Off Weight: Simulate & see if adding ≈ 200 meters to the existing runway solves the full fuel load take-off problem.

    6. MRO’s ISO Certification: Since the MRO is already GE-Boeing accredited, opt more for GE engines & capitalize more on GE’s technology to fast-track the certification.

    Ayalew Mognu / Sew Amagnu

    • anyalew,

      i am only talking about domestic fight… i am not expert but
      u choose 737–MAX 8 for 200 passengers and 737-800 hold 215 passengers

      737-700: US$80.6 million.
      737-800: US$96.0 million.
      737-900ER: US$101.9 million.

      if u going to fly 3 time per day 5 days per week i think this plane r too big for our market because most of our destination r under one hour

      bombardier Aircraft

      January 2017 Average List Prices

      ($USD Millions)

      Q400 32.2m

      CRJ700 41.4m

      CRJ900 46.5m

      CRJ1000 49.5m

      CS100 79.5m

      CS300 89.5m

      it is not only the price but what u need is smaller plane because u only going for one hour … under one hours flight u dont need bigger plane .. i think bombard is practical choice if u ask me.. they r work horse they preform excellent in short distance if we flying over five our or 3 hours then ur choice make sense …

      in with partnership with should operate all African domestic fight using this plane

      • Snake TPLF-Tigre Ash(ebari) – Part-I:

        1. Short answer: Leave my comments to the professionals I addressed to.
        2. My earlier comments answer you best [1 link here – another follows]:

        https://www.nazret.com/2017/07/01/ethiopian-airlines-inaugurates-second-addis-ababa-cargo-terminal/ [1 comment in this link!]

        Excerpt: “ … Operating Bombardier’s 78-seater Q-400s in the 21st century Ethiopia is NOT in Ethiopia’s interest – The suggestions & reasons are:

        1. Go B737-800 for Domestic & Regional [Switch to B737-MAX-8 when price drops]:

        (i). Although the B737-800 costs ≈ 3X the Q400, it takes the B737 just 39 flights [vis-à-vis 92 flights for the Q-400] to transport the same number of passengers…

        (iii). How many Q-400s satisfy the ever growing domestic air travel demand? [Do Bombardier’s Q-400s even pay back their price tags? Why plunge Ethiopia deeper in debt just to transport the TPLF-EPLF-EPRDF, ‘NGOs’, etc.?]

        iv). Fewer, high-capacity, better planes means efficient operation & huge savings:

        a). the B737-800 can step-in as a substitute for last minute plane malfunctions.
        b). less cost: plane purchase/lease; training [pilots, technicians, etc.]; allowances; etc.
        c). less manpower & manpower hours [flight crew, technicians, ground crew, etc.]
        d). less MRO cost [on B/C/D Checks (less landing cycles, longer TBO, etc.)]
        e). less air traffic in the airspace: safer sky, safer airports, lesser air pollution, etc.

        4. … Doesn’t it only take a 2.5 km runway with navigation equipment? Doesn’t the price of a few Q-400s cover the cost? How many airports did Tigray build within a short time?

        So: (i). Build/upgrade airports, (ii). Use B737-800 for domestic/regional, (iii). Slash domestic fares [distribute loss over 5 seats], (iv). make ‘Ethiopian’ really Ethiopian!…”

        NB: Many countries use the B-737s for domestic/regional [USA, UK, Germany, etc.]. Most of these flights are usually about an hour AND for a competitive rail/bus fares.

        Mr. Snake Charmer [X-Ayalew Mognu / Sew Amagnu]

        • Snake TPLF-Tigre Ash(ebari) – Part-II – [Follow-up]:

          https://www.nazret.com/2017/06/20/ethiopian-airlines-orders-10-more-a350s-737-max-8s/ [3 comments in this link!]

          Excerpts from my comments:

          “… Why operate any Q400 let alone order more? I would use the B737-800 for domestic flights; slash domestic fares, let Ethiopians fly their flag carrier and make ‘Ethiopian’ really Ethiopian. Bombardier’s Q400s are not in Ethiopia’s interest:

          1). Upgrading Ethiopia’s domestic airports to international grade is long overdue! How many Q400s does ‘Ethiopian’ intend to buy citing ‘inferior-grade airports’ as excuse?…”

          “ … 2. Operational constraints: Sub-standard airports & High Altitude issues. ከልብ ካዘኑ – እንባ አይገድም! Where there is a will, there is a way:

          i). Doesn’t the price of a few Q400 planes upgrade each domestic airport to 2.5 km within weeks? Aren’t there contractors dying for such contracts as we speak?

          ii). Ethiopia can’t change its elevation. So, order ≥ 150-Seater twin-jets which handle those altitudes [and test the plane(s) at the highest elevation & the worst airport]!…”

          ———————— End of quotes —————————–

          I wonder why the TPLF-EPLF-EPRDF Appointees keep buying Q-400s:

          1. Why doesn’t ‘Ethiopian’ use the Engineering, Maintenance Methods and Research Department [there was (is?) one] to decide the pros/cons before ordering planes?

          2. Probable reasons the TPLF-EPLF-EPRDF-Appointees buy the Q-400s:

          (i). The two Tigres [Tigrayans or Eritreans] working for Bombardier [the one in Sales was Deputy GM (Tech. Serv.) at ‘Ethiopian’ in the Derg Era.

          (ii). Possible TPLF/EFFORT share in Bombardier’s & CAE’s stocks!

          “[PS: Why purchase the A350’s simulator ‘under-table’ from the CAE [Bombardier’s affiliate.]?”

          iii). Generous kickbacks and/or comparable gains!

          Mr. Snake Charmer [X-(Ayalew Mognu / Sew Amagnu)]

  2. This is a sign of woyanee liquidation strategy. The foreign exchange shortage plus biz unions strike will cripple Addis Ababa minority gov. in the coming year (def during Trump administration).

    The only revenue producing state asset that Woyane could use as a card will be on the table to negotiate for funding the gov.

    Chinese state is preparing to make a pitch for stake ownership once TPLF fails to maintain order and attract FDI.

    Mark my words.

  3. Wake up Ethiopia!!!

    Is EFFORT going to own the shares and have full management control of EAL? I.e., EAL is going to become almost a private property of TPLF through the holding company? If it is, all the profit goes directly to the Holding company or in the pocket of TPLF.

  4. Lasta

    It’s hypocritical of you to demand freedom of speech and respect of human right when you don’t respect the right of others. Your opinions is formed on the basis of our own reason and experience why you expect ayalew_mognu to parrot the same word like you. Is he not entitled to voice his own opinion? Whether you agree or disagree. How people are going work for the common good if they are not allowed to contribute and involve in their country future. Where are going to stop this backward character assassination and disrespect to each other

    • Ato Girmay beyene,

      I didn’t say him not to respond. He needs to get better at expressing facts not emotions. Is he the Operation Director of EAL? No, he is not. We are responding to the Holding company taking over EAL. This is a very serious matter.

  5. First of all, All Ethiopian need to investigate who is the so called “Aviation Holding Group – ATW”??? but, I have a feeling that EFFORT going to take over and later will tell Ethiopian f*u*c*k off. Oh, this group they can suggest to move the head quarter to Mekele if they want it too because they are the one who is managing. If its for good purpose I support it.

  6. Hello, Snake Ginbot-7 Lasta!

    ለመሆኑ ከጻፍኩት ዬትኛዉ ፊደል ገብቶህ(ሽ) ነዉ – የተለመደዉን የግንቦት-7 ስድብ ለመሞጫጨር የተጣደፍከ(ሽ)ዉ? ዝንጀሮ!

    Had it been for Ginbot-7 & the TPLF-EPLF-EPRDF, Ethiopian Airlines would have seized to exist long ago! If you have feedback for Ethiopian Airlines, they are all ears! Whoever I am, I give them my recommendations and leave the execution to them!

    Is it your Ginbot-7 & Co. that stopped EFFORT from taking over the Ethiopian Airlines? Didn’t the worst robbery & Human Rights Violations in Ethiopia’s History happen between 1991 & 2005 while Ginbot-7’s leaders were serving the TPLF-EPLF loyally?
    https://www.youtube.com/watch?v=BTzcv2F6l3E

    Are you green with envy each time Ethiopia smashes one hurdle-after-another for the better? Then, you are another problem – NOT any solution: The Enemy Within! As Ethiopia’s Patriots Say: “ጠላት እማ – ምን ጊዜም ጠላት ነዉ – አስቀድሞ መቅጨት – አጨብጫቢዉን ነዉ!”

    Ginbot-7’s RATS like you whine about democracy, human rights, freedom of speech, etc. – without any clue what they mean – just deafening us with empty rhetoric:

    1. How do essential development projects affect any anti-TPLF-EPLF-EPRDF struggle?

    2. Should we Freeze Ethiopia in time with over 90 million people on board just to satisfy the egos of power hungry & disgruntled former TPLF-EPLF-EPRDF servants?

    3. How does replacing the TPLF-EPLF-EPRDF with Ginbot-7 & EPLF/Eritrea help Ethiopia? What is in it for Ethiopia? How does back-to-square-one help Ethiopia?

    Mr. Snake Charmer [X-(Ayalew Mognu / Sew Amagnu)]

  7. my dearest and my beloved ayalew_mognu

    Q400 OUT shine 737-700:

    1.cost 32.2m vs US$80.6 million.
    2. seat 78 vs 118

    All Ethiopian domestic flight r short haul that means 1 hours average fight … that means Q400 is more then enough if u want to flight more people even if u buy two Q400 that would be 60 million instead of 80 million how about flying twice per day… which way u cut it Q400 out shine 737 for short haul…

    now about higher altitude even then bombard have jet aircraft

    CRJ700 41.4m

    CRJ900 46.5m

    CRJ1000 49.5m

    almost half the price of 737

    about making our airport to international standard again wrong .. smaller airport is more effective if u have the demand that is another thing but if u dont have the demand smaller airport much better it keep the cost down… small doesn’t mean not effective .. all modern technology must be implemented

    Here is one thing u make sense is making our regional airport international standard … not all of them but few of them and what is next making our regional airport international standard alone doesnt make sense we have to use if for example let take

    let as make Dire Dawa, axum and Jamma airport international airport and open it to all African Airlines to transit next to for nothing this will make our regional airport make money buy delivering other service .. like shopping and restaurant and other what the transit passengers this deal is more Attractive for Western Airlines who doesn’t want transit in Europe while carrying refugee asylum seeker from Africa they would have prefer to transit in Ethiopia then fly out to their finial destination … otherwise even this ur suggestion is also a boost if we cant make more money by landing more plane from our international airport why would we have international airport if we dont have international airlines landing

    • update

      Ethiopian Airlines have 19 Q400 … I think Ethiopian airlines partner with other African airlines and operate all over Africa for domestic fight .. in exchange of Ethiopia will give those member African country free landing in Ethiopia 3 or 4 international airport … and increased the Q400 and CRJ aircraft to 100 if not 300
      i
      this is truth pan Africanism and smart business …

  8. Snake TPLF-Tigre Ash(ebari):

    That’s what happens when Ethiopians open communication channels with Part-Time Ethiopian TPLF-Tigres who bled Ethiopia to secede & who now kill-to-loot at will.

    “If you wrestle with a pig, the pig would love it but you will get dirty,” they say! I understand where you are headed but here are the facts the audience should know:

    1. Why would you buy a 78-seater Q-400 which NEVER pays its price tag? Ethiopia will foot the bill and drown in debt. It is not your money either! Why do you care anyway?
    2. Why would I train two pilots to fly a 78-seater [Q-400] while I can train them to fly a 184-seater [B737-800]? ‘Ethiopian’ has the simulators! Ethiopia has paid for them!
    3. Why would anyone fly 92 times [Q-400] while it can be done in 39 flights with the B737-800 [to transport the same number of passengers!]?
    4. Why would I train and waste two technicians per engine [Q-400] for maintenance while I can use one per engine [B737-800]? [Training technicians is more expensive!]
    5. Why would I congest Ethiopia’s airspace with USELESS planes which will NEVER solve Ethiopia’s air travel problems? Well, you are NOT there to solve that, are you?
    6. Upgrading/Building International Standard Domestic Airports is to accommodate larger planes, transport more Ethiopians per shuttle and serve Ethiopians better.
    [I NEVER said build international standard domestic airports for international flights. Is it for international flights that Tigray built 5 international airports with Ethiopia’s money?

    Here is what you Terrorist TPLF-Tigres should know about The Ethiopian Airlines:

    1. The Ethiopian Airlines was set-up to transport Ethiopians [domestic & world-wide] just like Addis Ababa’s Anbessa City Buses! [The aim was hijacked in its infancy!]
    2. You Tigre Brothers [TPLF & EPLF] invaded-and-occupied Ethiopia to kill-to-loot. Isn’t that how you savage, bare feet, penniless ragtags became overnight millionaires?
    3. The TPLF-EPLF-EPRDF-Appointees are NOT there to serve Ethiopia. They keep buying Bombardier’s Q-400s at over inflated prices for personal & group gain:
    (i). kickbacks or the equivalent [posts like ICAO, scholarships for relatives, etc.].
    (ii). most likely Proxy TPLF/EFFORT’s share in Bombardier’s & CAE’s stocks.
    (iii). boost careers of the two Tigres at Bombardier [the Derg Era former Deputy GM at ‘Ethiopian’ was key in getting the Hadèré GM (Capt. Ahmed or Mohamed) buy the junk 16-seaters & 35-seaters from De Havilland (now taken by Bombardier)].

    Mr. Snake Charmer [X-(Ayalew Mognu / Sew Amagnu)]

    • ayalew_mognu,

      not me the math is against u… let the math speak for themsleves

      United Airlines Pay Rates – Captain

      Boeing 777 $180,961.20
      Boeing 787 $180,961.20
      Boeing 767 $149,553.60
      Airbus 320 $145,714.80
      Boeing 737 $139,582.80

      Horizon Air, is a regional airline based in SeaTac, Washington, United States

      Horizon Air Pay Rates – Captain

      Dash 8 $48,000.00

      two Dash 8 captain make $96,000 but u don’t need two captain u fly the Q400 TWICE a day u can carry the same amount of people that u could have carry with 737-800

      here is simple math

      Dash 8 carry 78 passenger if you fly it twice a day u will have the same number of passengers like bigger plane

      two Dash 8 carry 156 passengers = total cost for two Dash 64 million
      737-700 carry 154 passengers = US$80.6 million.
      737-800 carry 118 passenger = US$96.0 million

      now add the captain pay rate

      80,6 m + 139,582.80 = 80739582 or 80,7 million
      96 million + 139,582.80 = 96139582 or 96.1 million
      64 million + 96,000 = 64,096000 or 64,09 million

      dear ayalew_mognu, i enjoy playing with number and the number telling me Q400 out shine B737 any way u cut it beside u r assuming every time we will have full seat.. we r not flying in to Dc we r flying to Asela Airport,Awareh Airport,Gambela Airport,Humera Airport and Ghimbi Airport

      so the number is telling their own story ,,,, U suggestion might work after 20 years not now… when we become middle class then ur suggestion might work not now…

      have a lot suggestion under my belt… i suggested EAL to hire local language speaker for example if they fly to Arab country hire Arabic speak if u fly to Africa then hire an African who speak the local language .. EAL too my advice to heart and hire the Chinese speaker hostest…

      then i suggest EAL to buy airbus GUESS what they did it … so i am not drive by shooter that i just come and suggest idea …

  9. Snake TPLF-Tigre Ash[ebari]:

    Nazret.com chose NOT to post the 5 links I forwarded yesterday. No surprises: The age-old trash mentality from Ethiopia & Ethiopian trash politics – No level playing field.

    Well, if it were for Nazret & many others like it, we should have left the world think that Ethiopia is a trash country with trash like you [TPLF-EPLF-Tigres] & trash like your former servants [Ginbot-7 & Co.] who are here 24/7 to give Ethiopia a TRASH IMAGE!

    However hard you try, ETHIOPIA WILL NEVER FAIL – I guarantee you that! Had it been for the TPLF-EPLF-EPRDF & its former dogs [Ginbot-7 & Co., OLF-IFLO, ONLF, etc.], Ethiopia & Ethiopian Airlines would have seized to exist in 1991!

    Mr. Snake Charmer [X-(Ayalew Mognu/Sew Amagnu)]

  10. To the decision makers at The Ethiopian Airlines, EAE, CAA, etc.:

    1. Bravo for the Boeing 737-800-ready Semera Airport underway! Way to go!

    2. Operating Q-400s IS NEVER in Ethiopia’s interest! It ties up financial & manpower resources and plunges Ethiopia in deeper debt without solving any air travel problems.

    3. Although the B737-800 [184-seater] costs ≈ 3X the Q400 [78-seater], it takes the B737 39 flights [but 92 flights for the Q-400] to fly same number of passengers.

    4. Versatility & interchangeability: two-pilot, twin jet engine, ≥ 150-seaters serve Ethiopia best for domestic-regional! Go B737-800 & Switch to Boeing-737–MAX 8.

    5. Upgrading/building international standard domestic airports ARE in Ethiopia’s best interest [the sooner, the better]! The price of a few Q400 planes will upgrade ALL.

    http://www.boeing.com/commercial/737ng/#/design-highlights/characteristics/737-800/

    Ayalew Mognu / Sew Amagnu

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