By Joseph Olanyo, Monitor

In an effort to remain competitive, Ethiopian Airlines has signed code share flight agreements with Lufthansa, the German airline to further strengthen its position in the European Union (EU) markets.

The airline also signed a memorandum of understanding on strategic partnership and investment with Asky, a newly established airline based in Lome, Togo in a bid to serve the West African grid. The agreements are expected to strengthen the carriers in areas of marketing, operations and efficient services to customers.

This means that Ugandan and other passengers in the region traveling to Germany and other EU states on Ethiopian, will fly up to Addis Ababa and join Lufthansa airlines to their various final destinations. Ethiopian Airlines Country Manager Ms Regassa Ermejachew, said on August 7 that the business arrangement s will increase Ethiopian’s traffic volumes and bring business growth.

“Ethiopian can’t be an island in the aviation industry. Airlines are forming different forms of cooperation and Ethiopian airlines has been very cautious to assess its own weaknesses and strengths,” Ms Regassa said.

“We have been studying and doing consultations and we have reached a time when we want to make special arrangements for code share”. The Secretary General of African Airlines Association Mr Christian Folly-Kossi witnessed the signing of the Asky’s MoU, a detailed roadmap for Asky to start its operations by December.

While signing the code share agreement in Vancouver, Canada recently, the Ethiopian Airlines Chief Executive Officer Mr Girma Wake, and Chairman and CEO Lufthansa German Airlines, Mr Wolfgang Mayhuber, also signed various operational agreements to facilitate the implementation of the code share agreement.

“The new code share agreement will further strengthen Ethiopian’s position in Germany and other European markets by creating additional possibilities to access traffic through the extensive Lufthansa’s network,” said Mr Wake is a statement from Ethiopian headquarters in Addis Ababa.

In code share flight arrangements, airlines make their schedules compatible with one another. Code sharing and going into partnerships has been seen a viable way for airlines to continue being in the skies.

International Air Transport Association (IATA), a body that oversees, an aviation body representing some 230 airlines, in its international traffic data for June, showed a continued slowing of demand growth for air transport, said in its latest report that global passenger growth has hit a five-year low as freight volumes continue to contract amidst falling demand and rising costs, which are re-shaping the industry.

“The airline sector is in trouble. Losses this year could reach $6.1 billion, more than wiping out the $5.6 billion that airlines made in 2007. Falling demand and rising costs are re-shaping the industry,” said IATA CEO, Mr Giovanni Bisignani in a statement.

“To survive the crisis, urgent action is needed. Airports and air navigation service providers must come to the table with efficiencies that deliver cost savings. Labour must understand that efficiency is the only path to job security, ” he added.