Turmoil threatens Africa’s state-owned airline model

Ethiopia, indelibly linked with images of grinding poverty and famine, has quietly built one of Africa’s rare corporate success stories, with the continent’s only consistently profitable airline shuttling passengers from around the world through its hub in Addis Ababa.

Yet just as state-owned Ethiopian Airlines starts to vie with the likes of Dubai-based Emirates, outbreaks of violence around ethnic and human-rights protests have claimed an estimated 500 lives since June, threatening to deter travellers and undermining the political stability that helped it flourish. It is also grappling with the challenges of doing business in the region, with more than $200m in ticket payments tied up in countries including Nigeria and Angola, which the airline says is putting pressure on its liquidity. …more

Advertisements

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s