Ethiopian Airlines’ strategy gives it a shot at survival

If any African airline is having a reasonable pandemic, it is Ethiopian Airlines. Contrary to many of its regional and global counterparts, Ethiopian Airlines claims it has dealt with the crisis without reducing salaries or asking the government for a bailout. At a time when predicted global annual losses of $84.3bn have pushed industry giants such as American Airlines and Emirates to seek government support, this seems like nothing short of a miracle. In fact, it has more to do with leadership. An employee of the airline for more than 35 years, CEO Tewolde Gebremariam says that Ethiopian Airlines’ earlier decision to switch to transporting cargo helped it avert financial ruin by allowing the airline to maintain half of its income while 90% of its passenger fleet is grounded. “The decision to diversify as much as possible was the right decision because in times of crisis such as we are experiencing today, it has become a life-saving decision,” Tewolde told African Business. The ability to pivot into the cargo business is possible thanks to the airline’s prolonged investment in the sector, which led to the creation of Africa’s largest and most advanced cargo hub in Addis Ababa.<br/>