Ethiopia Shelves Opening Aviation Market to Foreign Private Airlines

Ethiopia has ruled out an immediate opening of its aviation market to foreign private airlines, citing the need to build a more resilient domestic aviation sector.

The Director General of the Ethiopian Civil Aviation Authority, Yohannes Abera, disclosed this on Monday, stating that the broader aviation ecosystem, as well as legal and financing frameworks, must be strengthened before any market opening is considered.

He noted that the domestic aviation sector currently lacks the institutional and operational capacity to compete independently with foreign carriers.

Abera added that private domestic aviation companies face several structural challenges, including regulatory constraints and operational bottlenecks, which require reform but will take time to produce meaningful results.

He cited a recent policy change allowing aircraft to be used as collateral for bank loans,  a measure aimed at improving operators’ access to finance. Additional sector-specific reforms are also under review, he said.

Currently, Ethiopia has 12 licensed private airlines, with two more companies in the process of entering the market.

While acknowledging that the sector could eventually be opened to foreign investors, Abera stressed that such a move would depend on the preparedness and resilience of domestic operators within a strengthened regulatory framework.