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Ethiopian Airlines smiles to bank with $233m profit

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The Ethiopian Airlines is smiling to the banks after it earned a record high $233 million in net profit in the fiscal year which ended on July 8, 2018.

Last year the airlines made $229 million in profit.

The Group CEO of the Airlines, Mr. Tewolde Gebremariam, said on Friday that the national carrier managed to register success in financial, commercial, operational and customer service sectors.

The flagship carrier transported 10.6 million passengers in the period, up by 21 per cent from the total of passengers carried the previous fiscal year.

The domestic passengers, who were carried to 20 destinations, constituted 1.6 million.

“The Ethiopian Revenue Passengers Kilometres (RPK) grew by 25 per cent while Available Seat kilometres (ASK) which means airline passenger carrying capacity has hit over 18 per cent as the global average was 6.8 per cent and 6.0 per cent respectively,” Gebremariam said.

“Had it not been for high oil prices and instability in West Africa and the Middle East, the profit of the airliner would have been more” Gebremariam added.

The Ethiopian carrier has added eight new international destinations and carried 400,339 tonnes in cargo service, showing more than 18 per cent growth compared to the volume in the previous fiscal year.

According to the CEO, the operating cost of the airliner grew by more than 43 percent from the previous year to culminate at 89.1 billion Ethiopian Birr.

“The price of oil which soared to $78 billion per barrel during the reported period has contributed to boost operating cost of the airliner by 36 per cent,” he said.

As part of its effort to forge strategic partnership with African airlines, the Ethiopian Airlines has purchased 49 per cent shares in Guinea Airlines, 45 per cent in Zambian Airlines, 49 per cent in Chad airlines.

It has taken almost all management ownership of Mozambique and Equatorial Guinea airlines.

During the fiscal year, the airline was given, for the first time in history, a four-star rating by SKYTRA, putting it on a par with the other global airlines including Turkish Airline which boasts about 50 destinations in Africa.

Gebremariam noted that Emirates, Qatar Airways, Turkish and other European airlines continue to be major competitors in Africa, snatching up to 80 per cent of the continent’s air transport market.

SKYRAX also recognized Ethiopian Airlines as Africa’s best airline, clinching the Best Business Class in Africa and Best Economy Class in Africa awards.

Ethiopian Airlines reached and passed the 100th aircraft in service milestone during the year, becoming the first African airline ever to do so.

Source: APA

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Aviation

Ozow partners FlySafair to improve air travel access for millions of South Africans

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Thomas Pays, Co-Founder and CEO of Ozow

A new partnership between digital payments company Ozow and leading local airline FlySafair is making it easier than ever for South Africans to purchase flight tickets.

According to Ozow co-founder and CEO Thomas Pays, the vast majority of South Africans have no credit cards and require alternative means of purchasing goods and services online. “There are more than 49 million bank accounts but only eight million active credit cards in South Africa. This poses the threat of locking millions out of digital and financial services. As an impact-driven and market-led company, Ozow is at the forefront of developing products, services and partnerships that enable greater digital and financial inclusion for all consumers and businesses. The partnership with South Africa’s most innovative and consumer-friendly airline is one more step toward this goal.”

Kirby Gordon, Chief Marketing Officer at FlySafair, says: “We’ve always respected the need to offer customers without credit cards various options to make payments both online and offline. We’re pleased to have partnered with Ozow who offer a safe, reliable and easy-to-use option for our customers.”

Also Read Interview with Ava Airways CEO, Olivier Arrindell

While airlines have been grounded and air travel limited since lockdown was first implemented in March 2020, South Africans generally love to fly. In 2017 alone, the Airports Company of South Africa tracked more than 40 million passengers traveling through the country’s nine largest airports.

Pays adds that the two companies share a commitment to ensure their services are accessible to all South Africans. “As a business, we work to break down barriers that keep more consumers from enjoying the benefits of digital payments. Cash remains the most expensive and least secure method of payment, but most South Africans still rely on cash payments for most of their purchases. By partnering with likeminded, consumer-led businesses such as FlySafair, we can accelerate the decashing of the South African economy and bring digital and financial empowerment to all South Africans.”

Issued by Design Communications

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iFly Aviation Takes Young Aviators And STEM Program To Uganda

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Kampala, Uganda: iFly is an aviation enterprise which is dedicated to bridging the gap between industry and community through inclusive youth empowerment programs. Our core focus is social innovation in Aviation, Science, Technology, Engineering, Mathematics (STEM) and driving our initiatives alongside key stakeholders in order to facilitate and enable the next generation.  

Our purpose is to elevate learners by empowering them, motivating and giving insight into opportunities that exist within the aviation industry and educating them along the way. As part of our efforts to drive our initiatives across Africa as to create a pan African movement, we have recently launched our programs in Uganda, this being the second country after South Africa. 

We hosted our first event at Nakasero secondary school in Uganda, to the delight of over 200 students. They were exposed to motivational talks including insights into aviation and its various opportunities. We had a flight simulator session where the students got exposed to a computer based flight simulator in order to see and learn first hand what happens in the cockpit during flight. 

The event was also complimented by a first of its kind engine building project,  an initiative of the Rolls Royce STEM program. Through this workshop, students got to build a 3D model Trent engine, the likes of which powers the Boeing 787 Dreamliner and Airbus A350, 2 of the most popular wide body airliners in the world. 

Also Read: Meet The First Female Military Pilot In Botswana Advancing Girls In STEM And Entrepreneurship

Our goal a to have such programs running across the continent and we would Like to invite any like minded and passionate people across Africa to join us as ambassadors and adopt iFly STEM under our blue print in their respective countries. We sincerely appreciate our ambassadors in Uganda for pulling off a successful first event. David Ssenkungu, Derrick Talemwa, Peter Mwesigwa and Hosea Datari. 

More Event Pictures:

Email derek@ifly-global.com

Visit: iFly

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SAA to address CEO Vuyani Jarana’s resignation, outline future plans

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Picture: ANA/Ayanda Ndamane.

JOHANNESBURG – The board of South African Airways (SAA) and its executive management will on Friday take the nation into their confidence about the state-owned airline’s current and future plans in light of Vuyani Jarana’s resignation as CEO.

In a terse statement on Thursday, the leadership of the airline said it would like to put certain matters into perspective and assure its customers, the markets and stakeholders about business continuity and commitment to the implementation of the airline strategy.

Jarana tendered his resignation last week as group chief executive, citing the airline’s mounting debt due to uncertainty about funding and lack of support from government as a shareholder in implementing the airline’s long-term turnaround strategy.

In his leaked resignation letter, Jarana said that a big chunk of the R5 billion bailout SAA received from government for the 2018/19 financial year had been used to pay creditors up to the end of March 2018, to the point that the airline on three occasions was on the brink of not paying salaries.

“We have not been able to obtain any further funding commitment from government, making it difficult to focus on the execution of the strategy,” Jarana said.

Also Read From Cape To Cairo on a plane built by teens

“I spend most of my time dealing with liquidity and solvency issues. Lack of commitment to fund SAA, is systematically undermining the implementation of the strategy, making it increasingly difficult to succeed.”

The board of SAA accepted Jarana’s resignation, saying that he had spearheaded the implementation of the long-term strategy to return the airline to financial and operational sustainability and position it to deliver effectively on its mandate since he joined the airline in November 2017.

But workers under the SA Cabin Crew Association have slammed the airline for making Jarana’s life difficult, saying that  he had, through consultation and transparency, managed to get the buy in of cabin crew at SAA into the long term turnaround strategy and his clear plan to revive the carrier’s fortunes.

The workers have even threatened to go on strike to have Jarana reinstated as SAA chief executive.

African News Agency (ANA)

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