Ethiopian Airlines

Emerging Africa-Asia market continues to grow with Korean Air service to Nairobi from Seoul

Connections between Africa and Asia will grow from 21-Jun-2012 with Korean Air's seasonal three-times weekly service between Seoul and Nairobi, Kenya. The hub-to-hub flight will link Korean Air's Asian-focused hub to the extensive and growing African hub of fellow SkyTeam carrier Kenya Airways, which plans to serve every African capital city within five years.

The Africa-Asia market will boom this decade, according to Airbus projections that see Africa having the highest percentage growth of traffic to or from Asia. Korean Air's route follows charter services to Nairobi as well as the signing in Dec-2011 of a trade agreement between South Korea and Kenya.

Korean Air will be the only Asian airline to serve East Africa, which geographically and combined with a partner's hub allows for greater traffic feed across Africa. Asian airlines have predominantly focused on serving South Africa while African carriers serve multiple Asian points.

United Airlines eager to tap expected growth in US-Africa market

United Airlines aims to further expand its network in Africa, the fast-growing market it only began serving last year and last month tripled its capacity in with the launch of Houston-Lagos service. But the rate of expansion will likely be relatively slow, reflecting some of the growing pains in Africa experienced by rival Delta Air Lines.

The opportunities in Africa for US carriers are huge given the current small number of flights in the market and the increasing economic ties between the US and several African countries. US-Africa has always been a modestly sized market that has traditionally been served primarily with connections via Europe. Slowly more direct services are opening up and over the next several years new flights are expected to be launched by US and African carriers.

Africa finally became the sixth and final continent to be added to United’s network in Jun-2010, when the carrier launched daily Boeing 767 service on the Washington Dulles-Accra route.

Star reaffirms position as strongest alliance in Africa with Ethiopian and potentially ASKY

Star Alliance has further cemented its position as the leading alliance in Africa after Ethiopian Airlines officially became a member on 13-Dec-2011. Ethiopian, which has been working on joining Star since being accepted as a new member in Sep-2010, becomes the third African carrier in Star following South African Airways (SAA) and EgyptAir. Ethiopian’s membership significantly boosts Star’s presence on the continent, adding 23 African destinations to the Star Alliance network. Four of the top five African carriers are now aligned, and three of these four are in Star.

Overall the African continent remains largely unaligned. But Star is currently not looking to recruit another African carrier. Instead Star is looking forward to Ethiopian subsidiary ASKY later joining the alliance. Togo-based ASKY would improve Star’s connections in West Africa, the alliance’s weakest region within Africa. Ethiopian gives Star a stronghold in East Africa and Africa overall as Ethiopian has the largest African network among any African carrier, with 40 destinations. Star is already strong in southern Africa, where SAA is based, while EgyptAir is based in North Africa.

Ethiopian eyes 787 service to Hong Kong and new Asian services as Africa-Asia market booms

Ethiopian Airlines will further strengthen itself in the nascent but rapidly growing Africa-Asia market by using its new Boeing 787 Dreamliners to open new routes – potentially in China, Malaysia and Singapore – reduce costs and align its overall fleet strategy to better serve existing Asian destinations. The geography of Ethiopian's hub in Addis Ababa allows the carrier to offer as efficient or more efficient connections than those through Middle East hubs. Ethiopian's African network is also unrivaled in the number of destinations served, and the booming times are seeing Ethiopian consider exercising 787 options and accelerating deliveries, slots permitting. Elsewhere in its route network, whose capacity is growing at 30% a year, Ethiopian next year will commence services to Toronto and in 2013 will increase capacity to Washington Dulles by deploying 777-300ERs.

Ethiopian will become the first carrier in Africa and Europe to operate 787s when it takes the delivery of its first 787-8 in 2Q2012.

Ethiopian Airlines aims to become the largest carrier in Africa by 2025

Ethiopian Airlines is one of the largest and most profitable carriers in Africa. It has 34 aircraft on order, including 10 B787-8s with a network of 56 international destinations and 17 codeshare partners.

It plans to join Star Alliance and in 2010 had an operating profit of ETB1.6 billion (USD92 million). Ethiopian has forged a successful path for its expansion plans and has come a long way since its beginnings as a joint venture between the Ethiopian Government and Trans World Airlines.

The carrier has set an ambitious, but realistic, 15-year strategic plan that includes becoming the single largest airline in Africa. It intends to generate revenues of ETB171 billion (USD10 billion) per year, acquire a fleet of 70 aircraft and improve its Skytrax customer service ranking from three to four stars.

If successful, the plan would make Ethiopian Airlines the largest and most profitable carrier in Africa.

Europe-Africa routes heavily concentrated across a few points

Africa, once carved up by European powers, retains air links reminiscent of those historic ties. Even so, in too much of the continent, service remains spotty. The CAPA routes tool breaks African searches into four categories: North, South, East and West/Central. But in terms of seat offers available, the real division is between North Africa, those countries bordering the Mediterranean – and everything else. This examination will utilise this format, beginning with everything else.