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Colombia's Avianca, pilots seek salary deal to normalize service

Pilots flying for Colombian airline Avianca are seeking a negotiated pay increase that would allow the airline to return to normal operations after many pilots last week stopped working overtime hours, officials said Tuesday. The Organization of Avianca Aviators (ODEAA), the union representing nearly half of Avianca's pilots, has ruled out a full strike for now and agreed with the airline to extend negotiations for 20 days. "If there's no agreement, the zero overtime will continue," ODEAA President Jose Maria Jaimes said. Jaimes said that 750 pilots grouped in the ODEAA demand that their salaries be equivalent to those paid to pilots at other Latin American airlines - or as much as $11,500 a month, up from $6,000 with Avianca. The ODEAA-represented pilots argue that a new government tax reform, which began in January, has also cut into their salaries. Avianca, which said it will extend its dialogue with the union, has offered a 7.25% pay increase - above the country's 2016 inflation rate of 5.75% - but ruled out leveling of salaries against other regional airlines. "Our salary structure is not determined by the best-paid country in the region, but rather it must take into account the purchasing power of each country where we operate, as is done in any global company," Avianca said. <br/>

Ethiopian Airlines CEO: Knowing our African customers has been key

Ethiopian Airlines has come a long way since April 1946, when its first scheduled services flew second-hand Douglas C-47 Skytrains to the likes of Aden, Djibouti and Jimma. Fast-forward 70 years and the carrier has grown into the leading airline in Africa, its fleet of 85 aircraft – average age: five years – serving 90 destinations on five continents from its hub in Addis Abba. “Although 2016 has been [a] very challenging year for the industry, all in all it was a very good year for Ethiopian Airlines,” says Tewolde GebreMariam, group CEO and a 30-year veteran of the company. And GebreMariam is being modest. In the most recent 2015-16 financial year Ethiopian reported a 10.3% rise in revenue to $2.43b, an 18% hike in passenger numbers (now 7.6-m) and a 70% spike in net profit to $265m. By comparison, the IATA expects African carriers to lose some $800m this year. On a continent littered with balance sheets deep in the red, what is Ethiopian doing right? “Above all, we superbly understand the African aviation market,” adds GebreMariam. “We know our African customers [better] than any airline.” While Lagos and Nairobi are key routes, South Africa is its dominant long-haul destination in Africa, with 25 flights per week serving Cape Town, Johannesburg and Durban. “South Africa is a mature market, and a diversified one,” explains Abel Alemu, regional manager, Southern Africa. “We see both business and leisure travel to America, Europe and Asia and there is also growing pan-African traffic.” Story has further background.<br/>