Smart Partnerships Smart Investments

1. Ethiopian Airlines Smart Partnerships Smart Investments

2. Intra-Africa Trade • Very low compared to other regions Intra-Regional Trade Africa: 10% Europe: 60% North America: 40% ASEAN: 30% • Majority of trade done with countries outside of Africa

3. Consequence for African Countries • Unable to fully harness the synergies and complementarities of their economies • Unable to take advantage of economics of scale • Loss of greater income and employment generation • Unable to competitively source goods and services • Become vulnerable to external macroeconomic shocks and protectionist trade policies

4. Challenges for Intra-Africa Trade “If you don’t get there, you don’t trade there” Generally Lack of Trade Infrastructure • Inadequate network of Road, Rail, Air and Waterway • Lack of Soft Infrastructure such as ICT • Transport cost in Africa one of the highest in the world • Especially for landlocked countries, costs as much as 70% of value of exports

5. Ethiopian Airlines Connectivity – Passengers and Goods • 67 years of connecting Africa • 43 Destinations in Africa • Biggest Cargo Service • The only daily and double daily east – west passenger connection • More connection options through Star Alliance Membership and Code Share • Continually analyses new market opportunities and enters them alone or with partners

6. Ethiopian Airlines Fleet • Pioneer in African Aviation • Introduced the first Jet Aircraft in Africa • Continually invests on acquisition of modern and economical aircraft • 53 Aircraft including the most modern and youngest airplanes • 787, 777-200LR, 777F,737-800,Q-400

7. Ethiopian Airlines Training • Oldest and only aviation academy in Africa • Invests in technology (simulators, ICT, machinery, tools) • Trains personnel for other African Airlines • Adequate Knowledge and Skill Transfer

8. Ethiopian Airlines Maintenance, Repair and Overhaul • One of the oldest in Africa • Provides maintenance for other African Airlines • Continually invests in acquiring latest skill and technology • Certified by FAA and EASA • Boeing MD11, B777, 767, 757, 737, Bombardier DHC-8, Fokker 50

9. Ethiopian Airlines Multi-Hubbing • Establish multiple hubs in Africa • Hubs collect regional passengers and goods and feed to main hub • Hub to hub connection • Already established a hub in Lome tapping the vast potential in West Africa through strong partnership stake in ASKY, a Community Airline • In negotiations to establish additional hubs in central and Southern Africa

10. Challenges/Opportunities for Airlines in Africa South African Airways (14%) Comair 13% Ethiopian Airlines (8%) Kenya Airways (8%) Egypt Air Royal Air Maroc (8%)

11. Poor Infrastructure • Airport Expansion –improve infrastructure at airports to cope with growing traffic • Analysis indicates that in African Airlines with an average increase in capacity of 5%, yet facilities remained the same • Lack of reliable Information Technology platforms to process all passengers and baggage

12. SAFETY • Safety oversight • Adherence to regulatory requirements and industry best practices. • IOSA • FAA • Transport Canada • EASA • US Transport Safety • Agency • ICAO Security • Star Safety Audit Africa Share of Total Accidents Source : Flight Safety Foundation

13. Excessive Costs High operating costs • Landing & Overflying • Airport taxes • Fuel • Communications

14. Way Forward • Liberalization & deregulation of markets in general • Enhance aviation safety and security • Investment on Air Transport Infrastructure that facilitate growth and improve safety • Reduce fuel, landing, handling, navigation costs

15. Way Forward • Advancement of information technology empowering customers (e.g. online booking) • Full implementation of YD • Facilitate partnership and alliances among African Airlines • Government to create the enabling environment for airlines

16. TOGETHER WE CAN OVERCOME CHALLENGES