Ethiopian Airlines CEO Commits To One More Year At The Helm

Group announces 50pct salary bump for all employees

MesfinTasew has confirmed to The Reporter that he will continue serving as CEO of the Ethiopian Airlines Group through the 2025/26 fiscal year, following a request from the federal government to postpone his retirement for the second time.

Mesfin took the top job in March 2022 following the abrupt exit of his predecessor Tewolde Gebremariam, who ended a career spanning nearly four decades at the state-owned giant on account of his health.

Mesfin, who had been serving as the Group’s Chief Operating Officer (COO), was set to retire in 2023 after a one-year term at the helm. However, at the behest of the federal government, he opted to stay at Ethiopian for two additional years and retire in 2025 instead.

Mesfin disclosed this week he is again postponing his retirement plans to stay on as CEO for an additional year.

“I will remain as CEO of ET for one more year. My retirement was supposed to be two years ago. I am serving because my term has been extended. I will continue serving through the 2025/26 fiscal year,” said Mesfin.

He confirmed his plans following a press briefing at the Skylight Hotel earlier this week, where the CEO spearheaded a presentation of the Group’s 2024/25 performance report.

Although Ethiopian Airlines has continued its steady and impressive growth by recording USD 7.57 billion in revenue from its operations last year—an eight percent jump—the Group continues to struggle with difficulties in accessing spare parts, according to its executives.

Issues with suppliers in Canada and the United Kingdom have disrupted its domestic operations, which last year served 3.9 million passengers. Several of the Group’s Canadian-made Bombardier Q400 aircraft are grounded due to delays in the supply of spare parts from Pratt & Whitney—a subsidiary of US-based aerospace and defense conglomerate RTX Corporation (formerly known as Raytheon).

Ethiopian Airlines has been forced to divert two Boeing 737 aircraft from their usual international routes in order to fill the gaps left behind by the grounded Q400s, according to the CEO.

The spare parts issues, which began during the COVID-19 pandemic, have also affected international operations as UK-based Rolls Royce struggles to supply parts for the 787 Dreamliner engines it manufactures, according to Group executives.

Operational hiccups aside, Mesfin disclosed that Ethiopian Airlines is enacting a 50 percent salary bump for all its employees beginning this month.

The Group has also embarked on the construction of a mega-airport near the town of Bishoftu, 45 kilometers south of Addis Ababa, slated to replace Bole International Airport as ET’s main operational hub upon its completion, scheduled for 2029.

The Group and officials at the Ministry of Finance estimate the megaproject will cost at least USD 7.8 billion, with the African Development Bank (AfDB) expected to act as the primary financier.

Mesfin’s tenure as CEO has largely been positive and there is no official word yet on who is set to succeed him at the helm.

However, sources familiar with the Group’s day-to-day operations told The Reporter that Chief Commercial Officer Lemma Yadecha is the current favorite for the top job. Lemma has a background in engineering and holds a graduate degree in integrated marketing communication from the University of Mississippi. He has been at Ethiopian Airlines since 1999.