Using The Sustainable Growth Model For Decision Making: The Case Of Ethiopian Airlines .. Pre And Post Public Enterprise Reform

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This paper casts light on the financial aspect of managing growth in Ethiopian Airlines. It addresses an important issue in financial management attaining sustainable growth especially in public enterprises. The study reveals that the actual growth of the enterprise studied is not in harmony with the sustainable growth rate that should have been achieved, for the period 1986-1999. However, there is some improvement in the enterprise in management of growth after the Public Enterprise (Reform) Proclamation No. 25/1992. The option of reducing dividend payout (i.e. increasing the retention ratio) is beyond the firm's domain of decisionmaking, and the researcher recommends that this aspect be considered in policy decisions by the government so as to enable the firm to increase or decrease dividend payout ratio depending on its fund requirement. In addition, the researcher suggests that improvement in asset turnover and profi tabili ty be considered to prevent problems of growth that may arise. Increasing payload factor and reducing costs are suggested to achieve this objective. IV


In Partial Fulfilment Of The Requirements For The Master Of Business Administration


The Sustainable Growth Model For Decision