Ethiopia has ruled out plans to fully open its aviation market to foreign private airlines, emphasising building local capacity to compete effectively.
“The broader aviation ecosystem and legal and financing frameworks must be strengthened before any liberalisation is considered,” said Yohannes Abera, director general of the Authority Ethiopian Civil Aviation in a relevant meeting on Monday.
He said that the domestic sector lacks the institutional and operational capacity to compete independently.
According to the director, domestic private aviation companies continue to face structural challenges, ranging from regulatory constraints to operational bottlenecks. He said reforms are under way but require time to take full effect.
“The whole system needs adjustment, including the legal frameworks and the concerns raised by operators,” Abera said, adding that most of the problems are being addressed gradually.
He cited a recent policy change allowing aircraft to be used as collateral for bank loans, a step intended to improve access to finance for operators. Additional sector-specific issues are also being reviewed, he pointed out.
Currently, 12 licensed private airlines in Ethiopia with two more companies are in the process of entering the market.
While the director acknowledged that the sector could eventually be opened to foreign investors, he said such a move would depend on the readiness and resilience of domestic operators within a strengthened regulatory framework.
MG/as/APA