LETTER: Transit route gives Ethiopian Airlines advantage
There appears to be one major error in John Fairwell’s letter on SAA (SAA plays into Ethiopian Airlines’ hands (https://www.businesslive.co.za/bd/opinion/letters/2020-09-06-letter-saa-plays-into-ethiopian-airlines-hands/), September 6). He says Ethiopian Airlines “operates in a regulated market in the absence of any competition, similar to the SA market before 1991".
In fact, Ethiopian Airlines only operates to a small extent in a regulated market, mainly within Ethiopia. Its principal business is transit passengers, similar to the likes of Emirates and Turkish Airlines, and it has built a business model similar to that of these airlines. It helps, of course, that large organisations such as the AU Commission and the UN Economic Commission for Africa are headquartered in Addis Ababa...
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