Ethiopia has ruled out an immediate full liberalisation of its aviation market, opting instead to strengthen domestic carriers before opening the sector to foreign private airlines.
Speaking at a sector meeting on February 23, 2026, the Director General of the Ethiopian Civil Aviation Authority, Yohannes Abera, said the country must first reinforce its aviation ecosystem, legal structures, and financing frameworks.
“The broader aviation ecosystem and legal and financing frameworks must be strengthened before any liberalisation is considered,” Abera said, noting that domestic operators still lack the institutional depth to compete independently on the global stage.
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The policy stance reflects a cautious balancing act for Ethiopia, home to Africa’s largest aviation market, anchored by Ethiopian Airlines.
Officials say while the country recognises the long-term benefits of foreign participation, private domestic carriers continue to face structural hurdles, including regulatory constraints and operational bottlenecks.
Abera stressed that reforms are underway but will take time to yield results.
“The whole system needs adjustment,” he said, adding that concerns raised by operators are being addressed gradually.
One of the notable changes introduced allows aircraft to be used as collateral for bank loans — a move designed to improve access to financing for local airlines.
Authorities are also reviewing additional sector-specific challenges affecting operators.
Ethiopia currently has 12 licensed private airlines, with two more companies in the process of entering the market.
While officials acknowledge that foreign participation could eventually be introduced, any liberalisation will depend on the readiness and resilience of domestic carriers within a stronger regulatory framework.
The measured approach underscores Ethiopia’s ambition to develop globally competitive aviation champions before fully opening its skies to international rivals.
By prioritising institutional strength and financial resilience, the government appears focused on ensuring that when liberalisation eventually comes, local airlines will be better positioned to compete on equal footing in the global aviation market.
