Africa’s biggest airline, Ethiopian Airlines Group plans to invest in other African airlines and is considering buying a stake in struggling South African Airways.
South African Airways is often hyped as Africa’s best airline with highly publicized international awards but it has struggled with financial losses and has not made a profit since 2011.
SAA is $611 million in debt and has relied heavily on government support to keep operating.
The state-owned Ethiopian Airlines has doubled its number of passengers and increased its profit fivefold in the last six years, BusinessInsider reports.
A record 12.1 million passengers flew with Ethiopian Airlines during the first six months of 2019.
It is now looking to invest in other airlines around Africa, including new carriers planned for Ghana and Zambia. A stake in South Africa’s state-owned airline may also be on the table.
Tewolde GebreMariam, the CEO of Ethiopian Airlines, has expressed an interest in the struggling South African carrier.
“We are interested in supporting South African Airways,” GebreMariam said in an interview. “We would consider it,” he said, according to Businesstech.