Despite recent tragedy, Ethiopian Airlines is an example of what SAA should strive for
The airline, like its SA counterpart, is a fully government-owned and operated company, but it is run by professionals with aviation experience
African aviation is expected to grow at 5.4 % a year over the next 10 years and forms a key part of the economic lifeblood of the continent. SA Airways (SAA) and Ethiopian Airlines (EA) are the two top-rated African airlines based on size and customer feedback, and should therefore benefit most from this potential growth. The diverging fortunes of these two African giants deserves a closer look. While Ethiopian Airlines has consistently projected a profit over the past five years, SAA has consistently shown negative profitability year-on-year. The SAA fleet size remained little changed over the five-year period, while EA nearly doubled its fleet size based on sustainable growth.
Like SAA, EA is a fully government-owned and operated company. The airline is the fastest-growing and most profitable in Africa to date, making a profit of R3bn a year, while SAA is losing, on average, R3bn a year. Both SAA and EA employ about 11,000 people and have adopted an “open skies” policy, whic...
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