ChinAfrica:As Africaís flagship carrier, Ethiopian Airlines celebrates its 40th anniversary of flights toChinathis year. What role doesChinaplay in promoting the development of Ethiopian Airlines and Africaís air industry on the whole?

Konjit Tedla:A pioneer in African aviation, Ethiopian Airlines was the first African carrier and the fourth in the world to fly toChina. Since the first flight 40 years ago,Chinahas been a key market and continues to be one of the most important destinations for Ethiopian Airlines. The relationships betweenChinaand Africa in general andEthiopiain particular are at their highest. With Africaís economic boom and its growing trade, investment, business and tourism, overall ties betweenChinaand Africa have been growing exponentially in recent years.

Chinaís direct investment in Africa increased from $1.44 billion to $2.52 billion, with an annual growth of 20.5 percent from 2009 to 2012, according to a paper on Sino-African economic and trade cooperation published by the Information Office of the State Council of China.

Currently, over 2,000 Chinese enterprises have invested in more than 50 African countries and regions, covering industries such as traditional agriculture, mining, construction, resource product processing, industrial manufacturing, finance, commercial logistics and real estate.

By the end of 2012,Chinahad signed bilateral investment treaties with 32 African countries, and established joint economic commission mechanisms with 45 African countries.

As an indigenous and truly Pan-African Airline, it has always been our objective to connect Africa with the major financial, industrial and commercial centers of the world such as those inChina. As such Ethiopian is meeting the increased demand for air connectivity, which is a critical engine for economic development between Africa andChina, with the most modern and technologically advanced aircraft.

Currently, Ethiopian connects 46 cities in Africa toChinawith 28 weekly flights, the most Ethiopian flies to any country. Ethiopian operates B77-200LR and B787 Dreamliners toChinaand will introduce B777-300ER (Extended Range) in November on itsChinaflights.

These are all a result of increased demand for air connectivity resulting from booming trade and investment ties. As a result, Ethiopian operation toChinais facilitating trade, investment, tourism and people-to-people ties with African countries. This tie is forecast to increase in the future and will require enhanced connectivity, hence stimulating growth in Africaís air industry.

This will further enhance the contribution of the aviation industry in Africa to economic development. Currently, the aviation industry contributes to the economic development of Africa in various ways. There are more than 50 million tourist arrivals per annum in Africa, almost all of whom travel by air. The aviation industry in Africa has created 7 million jobs, contributing $68 billion to the continentís GDP.

What are some of the achievements that allowed Ethiopian Airlines to win the 2013 Airline Strategy Awards?

Despite the challenges faced by the global aviation industry, Ethiopian Airlines just finished the  third year of its 15-year strategy dubbed Vision 2025 with what can be considered as the highest performance in the industry.

Through Vision 2025, Ethiopian is transforming into an aviation group comprised of seven profit centers: Ethiopian Regional Service, Ethiopian International Service, Ethiopian Cargo, Ethiopian MRO, Ethiopian Aviation Academy, Ethiopian In-flight Catering Services and Ethiopian Ground Services.

This will see Ethiopian become a world class African airline with fleet size of more than 112, flying 18 million passengers, uplifting 820,000 tons of cargo to 121 destinations and generating $10 billion in revenue and $1 billion in profit. The seven profit centers are being developed into independent business units which will generate 50 percent of their profit from services rendered to third party clients (mostly African and Middle Eastern airlines) on top of their service to the aviation group.

The fast, profitable and sustainable growth set in Vision 2025 is being achieved through four pillars which encompass cost leadership, operational excellence and efficiency, investment in the latest IT, employing best practice business processes as well as fleet modernization.

As part of this strategy, Ethiopian has been introducing, for the first time in Africa, ultra-modern aircraft such as B787 Dreamliner and B7777-200LR. Ethiopian has also been expanding its network both in Africa and the rest of the world. Ethiopian currently flies to 76 destinations across five continents (46 in Africa), still maintaining robust all around growth.

Ethiopian has the largest cargo and passenger network in Africa. However, as part of our Vision 2025, we also have a specific strategy for Africa. As Africa is a vast continent, a different approach is needed to provide hassle-free, smooth and convenient connections. A key feature or overarching strategic objective of the airline is creating multiple hubs in Africa.

Ethiopian has already, in partnership with private interests in West Africa, established a community airline based in LomÈ called ASKY serving 22 destinations in West and Central Africa. Ethiopian has equity participation and provides technical, management and commercial support to ASKY, which has been in existence for three years and is doing very well in capturing the niche regional market in West and Central Africa.

The objective with ASKY is to tap into the regional market and create hub-to-hub connection that enables ASKY to feed ET for the long haul intercontinental travel. With a similar approach, Ethiopian has finalized a strategic equity partnership with 49-percent stake to establish a new airline called Malawi Airline to serve destinations in the Southern African region similar to what ASKY does for West Africa.

Ethiopian and its CEO, Mr. Tewolde Gebremariam, won the Regional Leadership award, becoming the first African CEO to win the award for the first time in the awardís 12-year history which is annually given out byAirline Business Magazine, a publication of Flight Global, the worldís leading aviation media brand.

The Airline Strategy Awards for Regional Leadership is given to Ethiopian and its CEO for demonstrating excellence in leading a carrier, which provides strong transport links in Africa. Ethiopianís successful utilization of regional markets with high operational integrity as well as the ability to produce good growth rates while keeping a tight grip on costs [allowed] Ethiopian to continue to be successful in one of the most difficult regional markets for aviation.

 How has Ethiopian Airlines been able to maintain steady growth over more than 70 years?

Ethiopian has been able to perform and achieve profitable and sustainable growth through a combination of:

ª Our unique and strategically located hub

ª Efficient network of connectivity

ª Utilization of the latest aviation technology

ª Highly skilled and dedicated employees

ª Self-sufficiency in training of aviation personnel, who embody the values  and spirit of Ethiopian Airlines, through our aviation academy

ª Professional, highly skilled and prudent management

To offer our customers services that have unbeatable value for money.

 What changes can passengers expect from Ethiopian Airlines in the near future?

In the coming months our passengers will enjoy the comfort and unparalleled travel experience on board our latest aircraft. We will continue to add more B787 Dreamlinersand B777-300ER, the largest aircraft to date in our fleet with a capacity to transport 400 passengers. In the short term, we are also planning to add more destinations inChina. 

Passengers will also enjoy our revamped selection and quality of our inflight entertainment choices. We are also recruiting Chinese speaking cabin crew so as to enhance the travel experience of our Chinese passengers. 

How can Ethiopian Airlines benefit the regional development of African countries?

Africaand Pan-Africanism is part and parcel of our corporate DNA. Ethiopian has the largest passenger and cargo network in Africa benefiting the regional development of African countries by bringing Africa together and closer to the world.

On top of transporting passengers and goods smoothly and free of hassle, through its various publications and promotions, Ethiopian continues to promote Africa throughout the world, bringing the potentials of African countries to the limelight.

Ethiopian is also contributing to the development of African countries and Africans through its leadership in aviation technology in the continent.   Ethiopian continues to provide, as it has always done, the highly technological and dynamic aviation training to Africans and aviation services to sisterly African airlines.