Ethiopian
Africa’s largest carrier, Ethiopian Airlines, on November 5, 2024, took delivery of its first A350-1000 jetliner in Toulouse, France. The first to be operated by an African-based operator, the A350-1000 landed at the Addis Ababa Bole International Airport, basking in a warm welcome marked by a water cannon salute.
With a 395-seat capacity, the new bird is powered by twin Rolls-Royce Trent XWB engines, which feature a 50% noise footprint reduction compared to previous generation aircraft. As with all Airbus aircraft, the A350 can operate with up to 50% Sustainable Aviation Fuel. Airbus is targeting to have its aircraft 100 percent SAF capable by 2030. To date, Ethiopian Airlines operates a fleet of 21 A350 Family aircraft. In the coming years, 14 additional A350 aircraft, including 11 A350-900 and three additional A350-1000, are set to join the airline’s fleet.
Africa’s leading carrier, Ethiopian Airlines, established in 1945 with a TWA management contract, had an all-Boeing mid- and long-haul fleet until 2016. Its aircraft maintenance technicians and flight crew are well-versed in Boeing aircraft. The MRO center has components that can repair most Boeing commercial airplanes and even undertake cargo conversion work.
Until 2005, Ethiopian was a small carrier with a fleet of 30 aircraft—the mid- and long-haul fleet comprising Boeing aircraft. Ethiopian’s cost-prudent management believed in fleet commonality. When an airline has a small fleet operating a single type of aircraft, operating a single type of aircraft is paramount in optimizing operational costs. An airline with a small but diversified fleet will have higher operational costs.
There are few successful African carriers. Most African airlines have been wiped out due to mismanagement. Even those countries that re-established their national carriers are struggling to keep their start-up airlines afloat. The carriers are under-financed and poorly managed. Some of them have a handful of different types of aircraft. For instance, an airline has a small fleet of seven aircraft: two A330s, one A320, and 4 CRJ-900s. Surprisingly, the state-owned airline recently agreed to purchase Boeing 737, 787, and 777.
Introducing new aircraft types will undoubtedly be daunting for the fledgling airline. Staff training and building all the required infrastructure will require massive investment.
Ethiopian Airlines, a member of the Star Alliance, maintained a single type for decades. It only decided to have a mixed fleet in 2009 and placed orders for the A350XWB. It began taking delivery of the first A350-900 in 2016. Currently, the 78-year-old airline operates 155 aircraft, including Q400, 737MAX, 787, 777, A350-900, and A350-1000. It has 72 aircraft on order, including 787-9 and 777X and additional A350XWBs.
The carrier’s fast growth justifies its decision to have a mixed fleet of Boeing and Airbus, the duopoly in the global widebody aircraft market.
On the flip side, having a mixed fleet has a comparative advantage. Relying on a sole aircraft OEM and engine manufacturer is not a sound business strategy for a legacy carrier. First, an airline secures better financial deals when dealing with different manufacturers. Second, as the saying goes, don’t put all your eggs in one basket! In the advent of technical glitches with one airframe or engine manufacturer, the airline can utilize its other aircraft types. It is worth mentioning that the grounding of the 787 was due to a lithium battery issue in 2013, and the grounding of the 737MAX fleet in 2019 was due to the fatal crashes of Lion Air and Ethiopian Airlines MAX airplanes.
In early 2016, Rolls-Royce discovered corrosion-related fatigue cracking in the intermediate pressure turbine blades of the Trent 1000, which grounded up to 44 aircraft worldwide. Ethiopian Airlines was forced to ground four of its 787-8s, powered by the Rolls-Royce Trent 1000 engines, for five months until the manufacturer undertook the required modification work. During that time, Ethiopian was heavily reliant on its A350-900 fleet.
The lesson for other African airlines from Ethiopian Airlines’ success is that fleet commonality is an important factor they should consider when crafting business strategies. But as they grow, it is equally vital to have a mixed fleet. Having a reliable, cost-efficient, and fit-for-purpose aircraft is crucial for the success of any carrier. The latest Airbus Global Market Forecast projects that African airlines need 1,180 aircraft with over 100 seats over the next twenty years.
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