Browsing by Author "Woubneh, Ashenafi"
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Item Cost Reduction Potential of Ethiopian Airlines(A.A.U, 2008-06) Woubneh, Ashenafi; Shibrie, Zewdie(Dr.)Ethiopian Airlines, just like many other Airlines around the world, is suffering from the black footprints of the skyrocketing fuel price. The existing fierce competition among rival airlines makes the situation aggravated. Hence, unless otherwise it tries to keep costs as low as possible, the situation can result in significant financial losses and going into bankruptcy. In this study, ' it is tried to assess whether Ethiopian Airlines has the potential to reduce its costs. Questionnaires had been distributed to selected employees and interviews had been conducted with selected department managers to collect the relevant data. Observations have also been ma de. Flight delays & cancellations, denied boardings, poor baggage handling system, operating dissimilar aircraft family, unconsolidated and uncoordinated purchases, personal consumption of excess meal, beverages & hygienic items, expiration of purchased chemicals, and increase in the number of Aircraft components sent for foreign repair are found to be the major findings of the study that take part in the increased costs of the Airline. The study shows that there is a potential for reduction in costs. The study also forwards some recommendations that can be used to mitigate the problem and prevent any negative con sequences on the present and future performance of the company.