Despite the challenges brought about by the coronavirus crisis, Ethiopian Airlines has not reached out for state aid. It has not laid off any workers and has not canceled any of its outstanding aircraft orders. Clearly, the African giant is doing something right. CEO Tewolde GebreMariam has provided some insight into how his airline is succeeding where so many others have failed. Pin Ethiopian has so far survived the crisis very well. Photo: Getty Images No state aid for Ethiopian, no plans to ask for it
With the bulk of the world’s legacy airlines reaching out for state support and laying off staff, Ethiopian Airlines has not done either of those things. In fact, it has no plans to downsize its workforce or to ask its country for assistance. CEO Tewolde GebreMariam told The Africa Report that, “I never said I would appeal to the state. To date, we don’t need them. We are working hard to manage the crisis with our own resources.” So far, Ethiopian has managed to pay all staff salaries, to avoid layoffs and to keep flying, while so many other similarly networked carriers have not. Even through the worst of the crisis, it kept its links with China , something that was criticized at the time.
While it hasn’t had aid from Ethiopia, GebreMariam did say that China had provided some assistance. According to the CEO, Beijing had provided support to all airlines that continued to fly into the country, although he told The Africa Report,
“This is a very limited support from the Chinese government, of a relatively modest amount, which depends on the number of flights, the seat capacities deployed.”
So how is Ethiopian surviving the crisis in such a healthy state? What’s Ethiopian doing right?
In the interview, GebreMariam outlined his airline’s roadmap to survival, and why it is doing so well when others are not. Alongside a strict cost-cutting program, Ethiopian was quick to look outside the box to maintain its liquidity. The CEO said,
“The strategy of diversifying our activities into cargo, maintenance and hotels is proving to be the right one, as it is helping us to get through this period. We are taking full advantage of it.” Pin Ethiopian has converted 20 passenger planes for cargo. Photo: Getty Images He went on to explain how the airline had kept revenues flowing, even as passenger demand ground to a […]
