Ethiopian Airlines Announces Dollar-Based International Ticket Pricing
Ethiopian Airlines has announced that the ticket prices for international flights transacted in dollars will be determined by the daily foreign exchange rate of the Commercial Bank of Ethiopia.
According to the Head of Public Relations of Ethiopian Airlines, Mrs. Hana Atnafu, the ticket prices for international trips are determined by the dollar exchange rate. This is not only due to the daily currency exchange rate but also because ticket prices may change according to the daily exchange rate fluctuations from morning to night.
Ms. Hana explained that there may be price differences due to the exchange rate of the dollar and that this should be linked to the banks.
In response to the question about which bank’s exchange rate the airline uses, she stated that since the airline is government-owned, the operation is based on the dollar exchange rate provided by the Commercial Bank of Ethiopia.
She also said that since the airline makes all foreign flights and other important purchases in dollars, the ticket prices for international trips are based on foreign exchange rates.
However, the official mentioned that there is no dollar-based increase in ticket prices for domestic flights and that this situation will continue for as long as possible, but research is being done.
On Tuesday, 30 July 2016, Ethiopian Airlines announced in a public notice that it has not increased the ticket prices for domestic flights based on the foreign exchange rate of the dollar.
The notice also pointed out that domestic flight ticket prices may be slightly adjusted based on future research, considering the purchase and rental price of aircraft, as well as the purchase of aircraft maintenance and spare parts, whose payment is in foreign currency.
Ms. Hana said that there is no time limit on how long the proposed adjustment will be implemented.
“There is no set deadline for domestic ticket prices to be adjusted. The airline’s plans, general procurement, rental, spare parts, and other operations are all transacted in US dollars. Therefore, all this is taken into consideration when the price is adjusted, and the adjustment will be made as per the decision of the airline management. Their decision will be based on market research,” she said.
Mrs. Hana added that the amount of adjustment money will not be excessive, as the airline pays special attention to domestic flights, and the main work done on domestic flights is not for profit. The increase will be reasonable.
She also noted that the airline will not revise the ticket prices for domestic flights for as long as possible.
This is evident as there has been a recent devaluation of 30% Ethiopians Currency after long time. So the airline wants to take advantage of the situation.