Ethiopian Airlines, Ethiopia’s flag carrier, has delayed its plans to offer cargo forwarding services to the horticulture sector.

The delay, expected to last at least up to April followed complaints by exporters at the higher rates being proposed by the airline taking over from the current operators.

The Airline proposed to charge growers 1.82 US dollars for every kilo which was higher then the 1.72 US dollars previously being charged by the Ethio-Horticultre Cooperative offering forwarding services in the past according to sources.

Managers at Ethiopian however claim that the price reflect the current fuel prices.

The transport of cargo can be handled by any airline that has an air service agreement with the Ethiopian government and hence the forwarders could look to other airlines charging less money to salvage their business according to a senior manager with the EHC.

It is to be remembered that the Cargo Division of Ethiopian Airlines announced plans to forward horticultural products from farms to the international market two weeks ago at a briefing session held at the Radisson Blu Hotel.  

The meeting was chaired by Tewolde Woldemariam, Chief Executive Officer and Haileselassie Tekie, Director General of the Ethiopia Horticultural Development.

The airline can offer access to the international markets on a daily basis note depending on the volumes being exported as well as being ready to absorb all risks in spite of the challenges associated with high fuel costs with the long term benefits had promised Tewolde at that meeting.

The supervisory board was formed at the same meeting in spite of significant debate on whether more time should be given. The members of the board were selected from growers, the growers association and the Ethiopian Horticultural Development Agency as well as the airline.

Source: Addis Fortune