Ethiopian Airlines Maps Out Privatization Plan – Bloomberg

The CEO of Ethiopian Airlines said that privatization plans, sanctioned by Ethiopia’s ruling party last month, are more likely to see foreign involvement in various operating units than an outright stake sale, given that airliner already makes a significant economic contribution to the nation while being efficient, competitive internationally and able to raise capital for growth.

Of the group’s seven or eight business units, some will be “very attractive” to investors and could also benefit from outside involvement, he said. He cited the airline’s hotel business, airports and aerospace manufacturing division where negotiations are underway with companies including Boeing, Airbus and Bombardier. The carrier’s logistics arm, which has a venture with Deutsche Post AG’s DHL brand, could be transformed into a joint holding giving the German company a 49 percent stake “within weeks.” […] CONTINUE READING