The Role of Ethiopian Airlines in Urban Economy

Abstract or Introduction

This study is about the role of EAL in urban economy, the case of floriculture industry in Addis Ababa and its hinterlands.

The main objective of the research is to evaluate the role of EAL in the economy of Addis Ababa and its hinterlands in the case of floriculture industry. It tries to see the role of EAL in employment creation, revenue generation, and in supporting the flower industry.

In the study, descriptive and experimental types of research method were employed. Then, both probabilities (simple random sampling) and the non probability (purposive) sampling were used. Therefore, a total of 174 respondents were selected from employees of EAL, flower farms, logistic companies, and EHPEA to respond through a questionnaire and an interview. The collected data were analyzed using SPSS and the interpreted data were presented in tables, charts, graphs, and pictures.

In this study, the researcher confirmed that “there is strong positive relationship between growths of the EAL and the growths of the Floriculture industries”. Furthermore, the different problems that affect the EAL from playing its role in the economy of Addis Ababa and its hinterlands through the floriculture industries were identified.

The problems in the EAL side include: the space constraint in the cargo terminal of the EAL, for loading and unloading, for cold room, shortage of warehouse and aircraft, poor handling of flowers, and delay in departure.

In order to solve the identified problems the following recommendations are forwarded: EAL is advised to widen the cargo terminal, prepare enough aircraft by buying or by renting from other airlines; the EAL is advised to allow other airlines to serve by their charter airplanes, encourage privatization in some activities like handling of perishables.