Ethiopian Airlines, Ethiopia’s flag carrier, is taking steps to economize to save up to one billion birr to ward of operational difficulties due to a significant increase in expenditure following a sudden increase in international fuel prices according to sources.

The measures to be adopted by the airline include seeking employees to relinquish a percentage of their salaries, soliciting free over time service, increasing customers, reducing waste, offering maintenance service for other airlines, and negotiating a reduction on the lease paid on rented aircraft.

Senior management of the airline have been carrying out meetings with employees of the airline to propose the economizing measures suggested and to encourage efficiency.

Pilots were asked to relinquish 10% of their salary to offset costs while technicians were cautioned to avoid accidental damages which amounted to an estimated 1.5 million dollars in repairs over the past few months alone said anonymous sources.

The airline declined to officially comment on the content of its meetings with its employees.

It is to be remembered that two weeks ago Ethiopian Airlines announced record operating revenues registering a growth of 50.4% in the first two quarters of the financial year according to Tewolde Gebremariam, Chief Executive Officer of the Airline.

The higher earning of the airline enabled it to absorb the 55% in increase and remain profitable in spite of a declining profit margin said Tewolde.

The growth registered by Ethiopia from July 8-Janury 9, the first six months of the Ethiopian financial year, is remarkable he said.

Source: Addis Fortune