BillionxxZ4

A world-class global CEO talent factory: Ethiopian Airlines (ET). Too often it’s assumed that transformational world-class corporate leaders that can run multinational companies (MNCs) are developed and deployed in other parts of the world but not in Africa. Ethiopian Airlines has proven this assumption to be wrong. Below is my brief view based on twenty years of providing strategic advise to ET and managing M&A transactions for the airline during the leadership of all three CEOs since 2004–Ato Girma Wake, Ato Tewolde G/Mariam and Ato Mesfin Tasew (current CEO). The ~$10 billion revenue airline with annual profits of $1.0+ billion, is by far Africa’s largest and is amongst the world’s five biggest by number of international destinations. The airline operates 160+ very modern aircrafts—majority Boeings, but a significant number from Airbus. It has on order 100+ new aircrafts worth billions of dollars and is currently building what will be one of the ten largest airports in the world at a cost of $12.5 billion with a capacity of 110 million passengers. Over the past 80 years the airline has been a global pioneer—for instance it was the launch customer for Boeing’s 787 Dreamliner and was the first to introduce jet service in Africa in 1968 with the Boeing 707. It’s also one of Boeing’s oldest and largest customers in the world. Furthermore, ET has demonstrated its remarkable ability to adapt to changes especially during very challenging times such as COVID-19 when it was the only major global carrier that didn’t seek nor receive government bailout even when other much bigger rivals in the U.S., Europe and Middle East received tens of billions of dollars from their governments to survive the pandemic. In fact, ET was the most profitable large carrier in the world during the pandemic’s first year. It retrofitted its passenger aircrafts to cargo and became the world’s go-to Pharma and PPE (personal protection equipment) cargo carrier worldwide. So, where did all this confidence and measurable success come from? It’s due primarily to the airlines’ ability to recruit, develop and retain and promote (on merit) some of the world’s most talented and visionary people—CEOs, CCOs, VPs, country managers around the world, etc. I also believe the Ethiopian people’s deep pride and “can do spirit” and the very smart approach by successive governments over decades made a big postive difference for the airline’s success. Here’s an inspiring fact: ET is the only 100% African owned (it’s state owned) and 100% African managed multinational company operating in over 100+ countries that’s competing and winning around the world. It shows Africa has got top talent and can achieve big. I compare Ethiopian Airlines’s talent factory to other global companies admired for producing top CEOs such as JPMorgan, Goldman Sachs and leading consulting firms such as McKinsey and the “Big Four” including PwC and EY. Here’s a brief list of top ET talent that’s currently deployed globally: CEO ASKY (Togo) CEO Uganda Airlines CEO Air Congo (DRC) CEO Malawi Airlines CEO Pakistan International Airlines (PIA) VP Boeing Africa (sales & marketing) MD Boeing Africa VP Kenya Airways (cargo) …….many others ET has also produced some of the world’s best pilots many of whom fly for global carriers such as Emirates, Qatar, Etihad, Singapore, United. ET’s highly qualified aircraft technicians and engineers are sought-after around the world and can be currently found at airlines and MROs in Europe, Middle East, Asia and the U.S. In fact several hundred are currently working in the U.S., many servicing major carriers including American Airlines. ET is also the only one on the continent to have its own aviation university. ET was established in partnership with TWA which was then one of two de-facto U.S. national flag carriers. The last of the TWA CEOs that run ET left in 1971. TWA went bankrupt in 2001. Nigeria Kenya South Africa Ghana Rwanda Tanzania