c&p Mail & African Guardian online magazine


ETHIOPIAN Airlines Enterprise, East Africa’s biggest carrier by revenue, is considering proposals to help set up national airlines in Nigeria and three other countries to expand its operations on the continent.

The state-owned company, which has stakes in Malawian Airlines and ASKY Airlines of Togo, has been approached by the Nigerian government about a new carrier for Africa’s biggest economy, Chief Executive Officer Tewolde Gebremariam said in an interview on March 20.

Ethiopian Airlines is also in discussions with the administrations of Uganda, South Sudan, and the Democratic Republic of Congo, he said, without giving further detail.

“We have been invited to participate and we’ve given a strong expression of interest,” he told Bloomberg T.V. on a private plane from Dublin to London, where he was promoting a route to Los Angeles via the Irish capital. “As soon as the process allows then we will submit a business proposal.”

Ethiopian Airlines is competing with South African Airways and Kenya Airways Ltd. as they expand routes outside their home markets to tap greater demand for travel within the continent. SAA, also state-controlled, is seeking a hub in West Africa that would also be a stop-off point on the way to the US.

@ Cde, these are figures in 2012/2013 & 2013/2014 Annual Reports.

(ii) Jet fuel price risk
The Group’s fuel risk management strategy aims to provide the airline with protection against sudden and significant increases
in oil prices. To meet this objective, the Company uses fuel hedges within approved limits and with approved counterparties
accordingly. There were derivative financial instruments held to manage fuel price risk at 31 March 2014. As at 31 March 2014
the Group had in place fuel hedging contracts for 51 percent of its anticipated fuel requirements for the period up to 31 March
2015 and 27 percent of anticipated fuel requirements for the period to 31 March 2016.
The following sensitivity analysis shows how profit and equity would change if the fuel price had been different with all other
variables held constant.
2014 2013
Kshs million Kshs million Kshs million Kshs million
Effect on profit Effect on equity Effect on profit Effect on equity


Fuel price
-1% Movement 398 398 414 414
+1% Movement (398) (398) (414) (414)

(ii) Jet fuel price risk
The Group’s fuel risk management strategy aims to
provide the airline with protection against sudden and
significant increases in oil prices. To meet this objective,
the Company uses fuel hedges within approved limits
and with approved counterparties accordingly. There
were derivative financial instruments held to manage
fuel price risk at 31 March 2013. As at 31 March 2013
the Group had in place fuel hedging contracts for 80
percent of its anticipated fuel requirements for the
period up to 31 March 2014 and 36 percent of anticipated
fuel requirements for the period to 31 March 2015.
The following sensitivity analysis shows how profit and
equity would change if the fuel price had been different
with all other variables held constant.
2013 2012
Kshs million Kshs million Kshs million Kshs million
Effect on Effect on Effect on Effect on
profit equity profit equity
Fuel price
-1% Movement 414 414 407 407
+1% Movement (414) (414) (407) (407)

You're actually supporting my position. Vimal would've beaten the crap out of that union and ensured the overpaid staff earn their keep. True Ngunze has realised that his staff is overpaid, but he has instead renamed their pay from allowances to something else, but the cash outflow is still the same. If you can't reduce their pay, then make them work for every penny.

Yes. The eyes popped too.. In a gololi like manner

Pay/compensation should be related to productivity not hunger. If I own a manufacturing firm in Kenya (or anywhere in the world), I would automate as much as possible. Why?

- Machines do not steal/pilfer
- The quality of production is more consistent. I do not need hand-crafted margarine!
- 24/7 without the need for shift changes.
- As technology improves, the machines can be programmed to produce what's needed and when.
- Cost reductions. Perhaps.

When the Japanese started using robots, the quality of the vehicles improved while costs went down. This allowed the Japanese to become much larger vs their American counterparts who relied on very expensive 'labor' that went on strike, sabotaged production and produced an inferior build.

Forget painting a car, there are firms that use robots to 'dip' an entire car into a anti-corrosion bath which evenly coats the frame allowing for a longer-lasting finish.