The new Addis Ababa–Lome–Rio de Janeiro–Sao Paulo service is marketed as a seamless gateway to Asia.
Ethiopian hopes to use Addis Ababa to its advantage but joins a long list of airlines competing on the Latin American-Asia route.

Crucially, it will be the sole operator between Addis Ababa and Brazil. However, its conservative approach means a non-direct flight will operate to build demand. Time will tell if the market takes off.

Ethiopian is one the better airlines on the African continent with ambition and vision, but the reality is they are up against bigger, legacy carriers such as Air China and Singapore Airlines.

Guangzhou’s thriving African expat community creates a demand for service between the city and Africa, which Ethiopian is looking to exploit. Conservative estimates put the number of Africans in Guangzhou at 20,000, but it could be as high as 150,000, according to the Globe and Mail:

There are at least 20,000 Africans, mostly from West African nations such as Nigeria, Ghana and Mali, living legally in Guangzhou, a city of about 12 million. The number could be as high as 150,000 if you include the many illegals and those temporarily in the city chasing business opportunities.

The demand is there but the big question is whether it will all work.

Generally, non-SkyTeam alliance carriers have a tougher job of competing with the dominant China Southern.

However, Emirates competes with the Guangzhou-based carrier on the Dubai route. And it has no problem filling planes with feeder traffic transiting at its Dubai hub coming from all over the world. It’s a big airline with a well-established frequent-flyer program – and officially claims the shortest LatAm-Asia service.

That being said, from Guangzhou, Ethiopian has no other feeder traffic or much help from fellow Star Alliance members, but as CAPA reports, it doesn’t have a problem filling planes, which is why it switched to a daily service late last year.

Since Ethiopian has been clipped by the grounding of Boeing’s 787 Dreamliners worldwide, the plan may not even leave the gate if it’s new planes are not back in service by June.

Without these aircraft, Ethiopian’s five 777-200LR would not have sufficient capacity to cover its existing long-haul network to Beijing, Guangzhou, Toronto and Washington Dulles, as well as a direct Hong Kong service.

We say watch this space.

Images: BriYYZ/Flickr and CAPA

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Stars align for Shenzhen Airlines
Shenzhen Airlines, China’s fourth largest carrier, has been handed a “win-win” boost after being accepted into one of global aviation ‘big three’ alliances.

The move opens up more of the Pearl River Delta as passengers fly to and from China and beyond.

Following parent company Air China, the southern China-based carrier joins Star Alliance, bringing more than 400 flights and 70 destinations to the network.

As reported by WCARN.com, Star CEO Mark Schwab said:

Shenzhen Airlines is China’s fifth largest carrier and strengthens the Star Alliance presence in China and across Asia. Our customers now benefit from improved access throughout the economically important Pearl River Delta and across southern China. At the same time, Shenzhen Airlines gains access to a global network with enhanced benefits for its passengers; truly a win-win situation.

This is good news for the legions of international travelers based in Shenzhen, as the can earn frequent flier miles more easily and reach more destinations with less hassle.

The move also brings Shenzhen in line with the rest of the PRD airports. China Southern and SkyTeam have an iron grip on Guangzhou Baiyun while Cathay Pacific and the Oneworld alliance dominate Hong Kong.

Beijing to seize control of Cathay?
CAPA has a must-read piece on the future ownership of Cathay Pacific. Could Swire, its largest shareholder, be prepared to sell its holding – at the right price – to Air China, which already owns 29.9% of Hong Kong’s flagship carrier?

Here’s what CAPA has to say:

An Air China takeover would be deeply political, and is seemingly not a question of if but when, how and what the competitive response is. Cathay expects Air China’s stake to increase, but Cathay’s board 
must first approve a takeover, which is not expected in the short term. The mood from Swire, Cathay’s largest shareholder (42%) and source 
of senior management – and almost its entire culture – is a firm commitment to Cathay and aviation in greater China but also seems to be that it will sell, but for a premium. As for accepting a takeover, the time may come when Cathay and Swire know that not cooperating with Beijing will yield unfavourable outcomes, as Hong Kong edges closer to becoming more fully a part of China.

It has to be said any takeover bid would be deeply controversial and stoke growing anti-mainland sentiment in the SAR.

Nevertheless, within the ‘big three’ alliances shaking-up their offerings at the moment, a takeover could lead to wider changes in the Delta.

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