ET May Set Up Hub in Lome
National carrier sets big plans By Groum Abate Ethiopian Airlines is considering setting up a hub in Togo 's capital Lome , after talks with Ghana failed. The airline is still interested in Libreville Gabon for its West Africa hub but does not seem completely satisfied as it is seeking at Lome as well specially for its Europe and North America flights. Girma Wake, CEO of Ethiopian Airlines told C apital that the plan for opening a West Africa hub in Ghana is delayed by difficulties that arose in Accra, and added that officials had requested Ethiopian Airlines to wait until September, 2006, but again failed to resume discussions with the carrier. Tewolde G. Mariam, Executive Officer of Marketing and Sales told Capital that the partnership was to be finalized in April, 2006 but has been delayed due to reshuffling of management at Ghana International Airways, GIA. The CEO said that the airline is not obliged to select Accra as its West Africa hub and would look to other strategic locations. Ethiopian Airlines and GIA had agreed in 2005 for the former to set up its West Africa hub in Accra , in a partnership that would see the two carriers working together in terms of management and technical support. Ethiopian Airlines was planning to use the Kotoko International Airport built in 1943 as its hub in Ghana . In a press briefing held Saturday October 28, in regard to the performance and future plans of the airline, Girma said that profits declined by 57% over the previous year. According to the CEO, the airline's profits declined from 309.9 million birr in 2004/05 to 133.6 million birr in the 2005/06 fiscal year, a drop which has not been registered for the last few years. However, the number of passengers the airline carried has increased from 1.55 million in 2004/05 to 1.76 million in 2005/06 showing a 13.7% rise. According to Girma, the airline spent an additional 284 million birr for fuel expenses over 2004/05 fiscal year as oil prices rose as high as 72 dollars per barrel. Girma has also revealed plan for fiscal year 2006/07. He said that the airline planned to ferry 2.09 million passengers and garner a net profit of 307 million birr, which is 129% higher than 2005/06 fiscal year. At the press briefing held at the Sheraton Addis he also said that the airline expects 6.4 billion birr in operating expenses in this fiscal year with operating revenue of 6.8 billion birr. Last fiscal year the airline had operating expenses of 5.2 billion birr and revenues of 5.4 billion birr. Ethiopian has also plans to increase its destinations from 46 to 50 this fiscal year introducing flights to Monrovia , Zanzibar , Juba and Bahrain . In its plan to become more international in scope, it has also implemented a world class brand that reflects Africanness. Tewolde G. Mariam told Capital that the new look would include the offices, interior design of the planes, employee uniforms and the in-flight films. The airline is also studying replacements for its domestic fleet and considers the use of large jets for domestic flights. According to Tewolde G. Mariam, the airline is considering Dire Dawa, Bahirdar, Mekelle, Aksum and Arba Minch airports for jet traffic. The CEO on his part explained that the issue of landing rights at Jomo Kenyatta International Airport in Nairobi is under negotiation with Kenyan Civil Aviation Authority (KCAA). Ethiopian had scheduled the Nairobi-Entebbe-Bujumbura route flights to resume on June 4, but owing to undiscl osed reasons, KCAA has postponed this indefinitely. Girma also said that the airline has secured a 300,000 sq. m. plot from the Addis Ababa City Caretaker Administration, for building houses for its almost 2,000 employees. Amo ng its future plans, Ethiopian Airlines is going to upgrade its pilot training center to an Aviation Training Academy . It further intends to install a B737 simulator for the flight school. Ethiopian Airlines' 737 trainees used to train on simulators in Dubai or Amsterdam . A new catering building that is worth 12 million dollars and a four star hotel near the premises of the airport valued at 30 million dollars are also among the targets of the airline. The hotel would be for passengers in transit. Girma said that the airline rents over 200 rooms daily in various hotels around the city for transit passengers. On April 28, 2005 Ethiopian completed an agreement for the purchase of five Boeing 787 Dreamliner jets and purchase rights for another five, which later was converted to a firm order. With this purchase order Ethiopian became part of the launch team of the revolutionary aircraft. The article outlines grand plans for ET. Hope they come to fruition. Cheers, W