Airline suffers because of war

One of Africa’s most successful carriers, Ethiopian Airlines, has suffered a serious set-back because of Ethiopia’s border war with Eritrea. Bisrat Nigatu, the airline’s chief executive, told PANA news agency that the last two years had been “very difficult and trying” for the company’s operations. It experienced a sharp rise in fuel prices and industrial unrest that resulted in a 36 percent increase in wages across the board for the airline’s employees. The chief executive said he did not expect to register profit during the 1999-2000 fiscal year, which ended in July.

Ethiopian Airlines was forced to shift its operational base from Addis Ababa to Nairobi, Kenya, for some time after the border conflict erupted in May 1998. All international flights on Ethiopian Airlines were moved to Nairobi for that period. The airline was also forced to re-route international flights to parts of Africa, Europe and the Middle East “to avoid overflying Eritrean territory during the war”, said Bisrat in the PANA interview published 5 August. As a result, the company’s fuel cost increased during that time by an average of 60 percent. But Ethiopian Airlines made “substantial gains”, said Bisrat, by streamlining operations and opening 10 new routes. It increased regional and international flights, but did not raise fares on international routes. The company intends to augment its fleet, PANA reported.