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.
Table of Contents
CHAPTER ONE
1.1. Introduction
1.2. Background
1.3. Description of the study area
1.4. Statements of the Problem
1.5. Research Objectives
1.5.1 General objective
1.5.2 Specific objectives
1.6. Hypothesis
1.7. Significance of the Study
1.8. Scope of the Study
1.9. Limitation of the Study
1.10. Organization of the Paper
1.11. Conclusion
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2. The Empirical Framework on the Role of Airlines to the Urban Economy
2.3. The Role of Ethiopian Airlines to the Urban Economy
2.4. The Role of Floriculture Industry to the Urban Economy
2.5 The Role of Floriculture Industry to the Ethiopian Economy
2.6 The Linkage between Airlines and the Floriculture Industry
2.7 The Linkage between EAL and the Floriculture Industry
2.8. Research Gap
2.9. Conclusion
CHAPTER THREE
METHODOLOGY
3.1. Introduction
3.2 Research Approach
3.3 Research Method
3.4 Research Technique
3.5 Sample Design
3.5.1. Population
3.5.2. Sampling Frame
3.5.3 Sampling Unit
3.5.4. Sampling Technique
3.5.5 Sample Size
3.6 Sources of Data
3.6.1 Primary Data Sources
3.6.2 Secondary Data Sources
3.7. Data Analysis and Interpretation
3.8. Conclusion
CHAPTER FOUR
ANALYSIS AND INTERPRETATION
4.1 INTRODUCTION
4.2. Response Rate
4.3. Demographic Characteristics of Respondents
4.4. Findings
4.4.1. General Information about the Sectors
4.4.1.1. The Service Provided by Logistic Company in Relation to Flowers
4.4.1.2. Mode in Transporting Flowers from Farm to the Airport
4.4.1.3. Process of Transporting Flowers
4.4.1.4. Other Options in Transporting Flowers Other Than EAL
4.4.2. Contribution of EAL and the Flower Sector to the Economy of Addis Ababa and Its Hinterlands
4.4.3. Status of EAL in Transporting Flowers
4.4.3.1. Current Status of EAL
4.4.3.2. EAL's Support to the Floriculture Industry
4.4.3.3. Amount of Flower Transported/Exported
4.4.4. Income Change of Workers of EAL and the Floriculture Industry
4.4.4.1. Employment Opportunities Created by the EAL and the Flower Sector
4.4.4.2. Income Change of Workers of EAL and the Floriculture Industry
4.4.5 Trends of Growth in EAL and the Floriculture Industry
4.4.5.1. The Growth in the EAL and the Flower Industries
4.4.5.2. Indicators of Growth in EAL and the Flower Industries
4.4.5.3 Trend of Growth in the Floriculture Sector
4.4.5.4. Trends of Growth in EAL
4.4.5.5. The Trend in the Amount of Flowers Transported
4.4.5.6. The Relationship between Growths of EAL and the Flower Industry
4.4.6 Problems Affecting the EAL and the Floriculture Industries
4.5. Interpretation
4.6. Problems that Affect the EAL and the Floricultur Industry
4.7. Conclusions
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
5.2 Conclusion
5.3 Recommendations
5.4 Conclusion
Research Objectives and Themes
The primary objective of this research is to evaluate the role of Ethiopian Airlines (EAL) in the economy of Addis Ababa and its hinterlands, specifically focusing on its impact on the floriculture industry. The study examines how air transportation services stimulate urban economic development through employment generation and revenue growth, while also identifying operational challenges within the logistics chain.
- The economic linkage between Ethiopian Airlines and the floriculture sector.
- Employment creation and income dynamics for workers in the studied industries.
- Trends in export revenue growth and sector expansion over a five-year period.
- Operational logistics, including air cargo facilities, cold room management, and infrastructure constraints.
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1.2. Background
The EAL also known as “Ethiopian” is the only air transportation provider owned by Ethiopian government in Ethiopia, established in the 1940s. According to Getachew (2007) the EAL was found on December, 1945. In its early time many of the workers were foreigners, particularly Americans. The airline relied up on American pilots, technicians, administrators, and accountants. Since 1971, the number of Ethiopians in the company has been increasing. The percentage of Ethiopians and foreigners employed in EAL was changed from 35% and 65% in 1945 to 85% and 15% in 2007, respectively (Samuel, 1993 quoted in Getachew, 2007: 27).
EAL has shown incredible performance and increment in the number of destinations, airplanes, workers, amounts of money it earns and the different infrastructural developments. Currently it has created employment opportunity for more than 5000 workers; it has a fleet size of 43 passenger and six freighters a total of 49 airplanes; about 83 destinations, of which 66 international and 17 domestic; and has increased the number of passengers and amount of freight that are transported(EAL, 2011). According to Tom (2011: 66), the EAL carried 3.3 million Passengers and had net income for the period 2010 of 121.4 million US D, making it Africa's most profitable airline by far. He also mentioned that, the modern terminal at Bole International Airport was ranked the 11th busiest in African in 2010 with 3.8 million passengers and third busiest for cargo in 2011 with 2.4 million tones. Further, in 2011 the Addis Ababa Bole International Airport served 4.5 million passengers and 160,000 cargo traffic.
Summary of Chapters
CHAPTER ONE: Introduces the study, providing the background of Ethiopian Airlines, the study area context, and the research objectives regarding the floriculture industry.
CHAPTER TWO: LITERATURE REVIEW: Reviews empirical frameworks regarding the economic roles of airlines and the floriculture industry, establishing the context for their linkage.
CHAPTER THREE: METHODOLOGY: Details the research design, sampling techniques (simple random and purposive), and the data collection methods including interviews and questionnaires.
CHAPTER FOUR: ANALYSIS AND INTERPRETATION: Presents the findings from the survey data and interviews regarding income levels, employment, growth trends, and operational problems.
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS: Summarizes core findings and offers strategic recommendations to improve cargo logistics and operational efficiency.
Keywords
Ethiopian Airlines, EAL, Floriculture Industry, Urban Economy, Addis Ababa, Air Transportation, Logistics, Employment Creation, Revenue Generation, Export, Cargo Terminal, Cold Chain Management, Economic Development, Hinterlands, Infrastructure
Frequently Asked Questions
What is the core focus of this research?
The research examines the economic relationship between Ethiopian Airlines (EAL) and the floriculture industry in Addis Ababa and its surrounding hinterlands.
What are the primary thematic areas covered?
The study covers employment creation, revenue generation, operational logistics (transportation facilities), and growth trends within both the aviation and flower export sectors.
What is the central research objective?
The objective is to evaluate how EAL supports the regional economy through the floriculture industry and to identify challenges hindering that support.
Which scientific methods were employed?
The study utilizes both quantitative approaches (survey data analyzed via SPSS) and qualitative methods (interviews and field observations).
What does the main body of the paper discuss?
The main body examines demographic characteristics of workers, analyzes growth indicators, tests the hypothesis of positive correlation between sector growth, and details operational obstacles.
Which keywords characterize this work?
Key terms include Ethiopian Airlines, Floriculture, Urban Economy, Logistics, Export, Employment, and Cold Chain Management.
How does the cargo capacity of EAL affect the flower industry?
The study identifies that existing cargo terminal space and cold room facilities are insufficient for the current growth rate of flower production, creating bottlenecks in export efficiency.
What is the relationship between the growth of EAL and the floriculture industry?
Statistical analysis in the thesis demonstrates a strong positive correlation, showing that the expansion of EAL's cargo services is essential for the continued success of the Ethiopian floriculture industry.
What role does Addis Ababa play in this study?
Addis Ababa serves as the central hub for EAL and the primary logistics point, with the surrounding hinterlands heavily reliant on the accessibility provided by the airline for their agricultural exports.
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- Tewodros Tsega (Autor:in), 2012, The Role of Ethiopian Airlines in Urban Economy, München, GRIN Verlag, https://www.grin.com/document/1243369
