Page 74 - World Airnews Magazine July Edition 2020

NEWS DIGITAL

we generate from MRO is not more than ly. It would take a long time to recover.
one percent. Cargo operation is profitable We are struggling to pass this trying under business protection as part of the
so the income is minimal compared to time by reducing our costs and focus on bankruptcy administration procedure have
the revenue generated from passenger other means of income like Cargo, MRO returned their aircraft. Since we have not
transport. and hotel business to survive. We believe declared bankruptcy we could not do that.
that we will pass through the storms.
There will be many casualties in the airline
The Reporter: Is the revenue you industry. Many airlines will die in the The Reporter: Have you requested for
generate from cargo and maintenance process. Especially in Africa, there will be loan repayment reschedule?
covering your fixed costs? many casualties. And we will pass through Tewolde Gebremariam: We have tried
this challenging time and get prepared
Tewolde Gebremariam: Yes, it is covering to exploit the market gaps that would be to secure loans from the World Bank,
our expenses. created due to the causalities. IFC, AfDB and the Asian Infrastructure
Development Bank but we have not been
successful so far. Because the process is too
The Reporter: You have told us that The Reporter: Have you returned your long and the interest rates are higher.
Ethiopian Airlines did not lay off its leased aircraft?
employees and did not deduct staff
salary. On the other hand, it did not Tewolde Gebremariam: No, we did The Reporter: What about the loans
seek state funding. How long can it not return our leased aircraft. But we that you took for aircraft purchase
sustain the business? postponed new deliveries schedule. from commercial banks?
Tewolde Gebremariam: We are in a very If the passenger aircraft are parked at the Tewolde Gebremariam : We are servicing
difficult situation. KLM secured EUR 4.6 Addis Ababa Bole International Airport why those loans.
don’t you return them to the lessors?
billion from the Dutch government. Air
France has secured EUR 7.6 billion from the We have a long-term lease contract. If
French government. US airlines combined we decide to return the aircraft the lessors The Reporter: Have you asked the
received USD 27 billion. No one can tell the would fine us for breach of contract. They commercial banks to reschedule the
right time when the pandemic ends and air would charge us the whole lease period so repayment period?
travel would resume. it is better to keep the aircraft. Tewolde Gebremariam: We have not
Human beings are born to work, travel done that. We do not want to defer on
and trade. They are not born to be locked loans. You see Ethiopian Airlines has a
down at home. So somehow this problem The Reporter: Didn’t you negotiate to commendable credit history. Throughout
would be resolved and travel would lower the lease rate? its 74 year history Ethiopian Airlines pays its
continue. With the necessary precaution it Tewolde Gebremariam: That also didn’t loans according to schedule. So now asking
will restart gradually. work. Because many airlines have filed for loan repayment reschedule will affect
We hope that the air space would be similar requests. Many airlines that went our credit history and we do not want that
open in July and air travel would resume. bust have returned their leased aircraft. to happen. Q
But air traffic would not pick up immediate- Those who went bankrupt and who are

World Airnews | July Extra 2020
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