Business Administration, Management, and Operations Commons^™

Sustainability Of Expansion In An African Airline: A Case Study, Sisay Asefa, Allen Batteau, Lisa Whittaker, Hung-Sying Jing

International Journal of African Development

Ethiopian Air Lines (Ethiopian) has committed to the purchase of 41 new aircraft, nearly doubling their fleet and introducing three new, state-of-the-art types (the A350-900 and the 787-8, and the DA40NG) into a fleet currently consisting of seven models. In a logistically complex industry, this represents a substantial increase in resource commitments and management responsibility in many areas including maintenance, pilot training, facilities, and route planning. The purpose of this paper is to examine this growth strategy, its underlying assumptions, and its sustainability given long-range industry trends in both the developed and the developing world. Using corporate and industry data, …