A Look at Ethiopian Airlines, the Fastest Growing Airline in Africa
An Ethiopian Airlines jet crashed shortly after takeoff Sunday, killing all 157 people onboard and bringing tragedy to an airline that was a rising star in Africa’s long-troubled aviation industry.
The crash marks the second fatal accident for Boeing’s popular new 737 MAX in less than five months, and is a sharp blow to an airline that was riding the waves of rapid growth. Ethiopian Airlines has become a dominant force in African aviation and a role model for neighboring countries looking to grow their own national airlines.
Ethiopian Airlines was founded in 1945 by royal decree from emperor Haile Selassie. With financing from TWA, the airline was able to acquire five Douglas C-47s from the US government and commence regional flights from its hub in Addis Ababa. The US continued to finance Ethiopian's growth throughout the 1950s and 60s via the Export-Import bank, allowing the airline to commence long-haul flights to Europe.
Ethiopian has always been a leader in modern jet technology, becoming the first African carrier to order the Boeing 767 and the first airline overall to order both the 767-200ER and the 757 freighter. In the late 1990s, Ethiopian commenced flights to New York (JFK) and Washington DC (IAD) while continuing to expand its international route network. This growth, combined with a major fleet renewal program launched in the early 2000s, earned Ethiopian an invite to join the Star Alliance network.
Fast forward and Ethiopian currently has 110 aircraft in its fleet with four more on order. Nearly half of these planes are next generation aircraft, including 787s, A350s, 777s and 737 MAXs like the one involved in Sunday's crash. Ethiopian Airlines was originally scheduled to be the launch customer for the 787, though that honor ultimately went to ANA. Still, Ethiopian was the third airline in the world to take delivery of the highly anticipated Dreamliners, a testament to how much Boeing values its relationship with the airline. Ethiopian currently has an average fleet age of just six years, compared to 11 for American Airlines, 15 for United and 16 for Delta.
In addition to Addis Ababa, Ethiopian has two other hubs: one in Lome, Togo (LFW) and one in Lumbadzi, Malawi (LLW). It's the largest airline in Africa in terms of fleet size, destinations served, revenue and passengers carried. For fiscal year 2017/18, Ethiopian reported a $223 million profit on operating revenue of $3.7 billion. During that year, Ethiopian carried 10.6 million passengers — the first time it had ever crossed the 10 million mark. This rapid growth and success in a market where other airlines have struggled to stay viable is a result of "Vision 2025," a 15-year development plan laid out in 2010 that called for the airline to increase its fleet size, route network and cargo offerings.
Outside of its own operations, Ethiopian Airlines has become a force in African aviation. The carrier bought a 49% stake in Air Malawi, and has entered into strategic partnerships to help Togo, Zambia and Guinea develop their civil aviation networks.
The crash of a brand new 737 MAX 8 aircraft was a shock and tragedy, and it may be weeks or even months before we understand what caused this horrible accident. Ethiopian has a long history of investing in modern aircraft and fleet improvements, and even after today, the Vision 2025 plan is likely to keep fueling Ethiopian's rapid growth. The management at Ethiopian clearly understands how much know-how they have to offer to the region, which is why they've partnered up to help neighboring countries and would-be competitors build stable airlines for themselves.
For more information, read TPG's full coverage of the Ethiopian Airlines 737 MAX crash and aftermath:
- How to Tell If You’re Flying on a Boeing 737 MAX in North America
- Safety Experts Weigh in on the Boeing 737 MAX
- Boeing Cancels 777X Event Following Second 737 MAX Crash
- China Grounds 737 MAX Aircraft
- The Striking Similarities Between Lion Air and Ethiopian 737 MAX Crashes
- Ethiopian Airlines Boeing 737 MAX Crashes After Takeoff from Addis Ababa (Update)
Feature photo by Yu Chun Christopher Wong/S3studio/Getty Images.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
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- Annual Fee is $325.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.