Africa’s Largest Airline Fighting for ‘Survival’ Amid Pandemic – CEO of Ethiopian Airlines



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Addis Ababa – In early March, Ethiopian Airlines
CEO Tewolde Gebremariam said at an aviation conference in Addis Ababa that
the coronavirus pandemic was “a temporary problem” – comparable to a
natural disaster or a spike in oil prices.

Several weeks later, the largest operator in Africa is
locked in what Tewolde describes as “a struggle that we are carrying out to
survival “, increasing cargo operations while seeking to defer the lease
payments on planes.

“To be honest with you, I had never thought
that would reach this stage, “Tewolde told AFP in an interview.
week. “I never thought it would spread like this at this speed,
and also in this magnitude. It’s too fast and too expansive and it’s
beyond imagination. “

Across Africa, airlines can lose $ 6 billion in
passenger revenue in 2020 compared to last year due to the coronavirus, the
The International Air Transport Association has predicted.

Ethiopian Airlines, the state-owned jewel of the
national economy and a vital source of foreign currency, he says he faces a
loss of income of $ 550 million only from January to April.

“If you put yourself in my place, the only way
for Ethiopian Airlines is to expand or refocus its resources, energy and time
in businesses that are not affected by the coronavirus, “Tewolde said.

However, even when the airline moves to assume a central position
Role in Africa’s Pandemic Response: Transporting Much-Needed Medical Equipment
across the continent: can last no more than three months before searching
outside of financial aid, Tewolde said.

“Can we sustain with only 15% of
Our income? “he said, referring to the amount they typically contribute
load. “For a short period of time, yes. But for how long? Very difficult
to predict “.

Loading boom

In the early days of the pandemic, Ethiopian
Airlines were criticized nationally for refusing to follow competitors like
Kenya Airways suspended flights to China, where the coronavirus originated
at the end of last year.

But Tewolde said he would make the same call today,
noting that the first Ethiopian case of Covid-19 – the disease caused by the
coronavirus: it turned out to be a Japanese man who came to the country from Burkina
Faso

The airline’s China routes now form the backbone of
their cargo operations as countries rush to get their hands on
Personal protective equipment and other goods produced in China.

This task is made more challenging by the fact that
passenger flights, which can carry cargo in their womb, have dropped
abruptly.

“Right now, there is a severe short-term
cargo shortage outside of China, “said Craig Jenks, head of the New
Consulting of Airline / Aircraft Projects Inc. based in York.

Long distance freight rates are “at least double
normal, “added Jenks.

At the beginning of the crisis, Ethiopian Airlines had
12 cargo carriers, and has since recruited “10 to 15” passengers
planes to build their fleet, in some cases ripping seats, Tewolde said.

That capacity does not reach competitors like
Emirates and Qatar Airways, but Jenks said the cargo could still yield
Ethiopian up to 40% of his normal income.

Crisis response

Ethiopian has simultaneously adopted a unique job
to the coronavirus era.

Senior officials from Washington to Tokyo have praised
the airline to repatriate its citizens, including the US Peace Corps. USA
Volunteers in 12 countries across the continent.

As the severity of the crisis became apparent,
Ethiopian executives “reached out to the diplomatic community to offer
more freight services and highlight your ability to offer special / chartered services
flights, “said a State Department official in a statement to AFP.

In total, the airline has “supported the
transportation of more than 2,100 US citizens and lawful permanent residents “to the
about $ 4.7 million, the official said.

Ethiopian has also worked with Carnival Cruise
Line, who earlier this month hired four charters to repatriate the crew members
docked in the American state of Louisiana.

The airline hopes to become deeply involved in
Africa’s pandemic response.

On Monday he finished distributing the second batch
of donated masks, test kits, fans and other supplies to Africans
countries by Chinese billionaire Jack Ma.

And last week the United Nations opened an aid
transportation hub in Addis Ababa that will depend on Ethiopian cargo planes to move
supplies and aid workers across the continent.

Tewolde said this represented “a continuation
of our leadership in Africa “even during periods of conflict or outbreaks
from other diseases like Ebola.

“All kinds of problems that Africa has
suffered, we have always been with Africa, “he said.

‘Whatever is needed’

With the financial cost of the crisis on the rise,
Ethiopian is in talks to defer aircraft lease payments and can search
deferrals on some payments of $ 2 billion in debt, Tewolde said.

The company is determined not to fire members of
your regular workforce, although you could resort to pay cuts depending on how long
The crisis lasts, he said.

The current cargo boom could start to fade in June,
and passenger traffic could remain suppressed long after countries lift travel
restrictions, he said.

However, Tewolde said Ethiopia remained committed to
long-term growth plans, including the construction of a new $ 5 billion airport outside
Addis Ababa.

“We will do whatever it takes to make sure
that we survive, “he said.

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