This document outlines a business plan and marketing strategy proposal for Ethiopian Airlines to identify opportunities in Sri Lanka. It recommends appointing VMS Aviation Air Services as the General Sales Agent to provide ground support services, sales and marketing expertise. The marketing strategy would target various passenger segments and position Ethiopian Airlines as a modern carrier. The objectives are to stabilize short-term passenger numbers, increase medium-term revenue, and gain long-term market share through new routes and partnerships. A variety of advertising channels are identified to increase brand awareness, including television, print, online, events and seminars.

1. ETHIOPIAN AIRLINES
BUSINESS PLAN
&
MARKETING STRATEGY FOR
Identifying Business Opportunities in Sri Lanka
Developed by:
VMS AVIATION AIR SERVICES
(PVT) LTD
48 A,DR LESTER JAMES PERIES MAWATHA,
COLOMBO 05
SRI LANKA.
TEL : 0094 11 2 502209 / 0094 11 2 502198
FAX : 009411 2 580737

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TABLE OF CONTENTS
1. INTRODUCTION
 Opportunity
 About this Document
2. MISSION STATEMENT
3. ADVERTISING STATEMENT
4. BUSINESS PLAN
 Proposal
 Services
 Communication of Information
 Benefits
 Combining Skills
 Market Research
 Expertise
 Sales and Marketing
 Fares Structure
5. OBJECTIVES OF ETHIOPIAN AIRLINES
 Short Term
 Medium Term
 Long Term
6. ADVERTISING
 Television
 Print Media - Newspapers - English/Sinhalese/Tamil
 Billboards in Strategic Locations
 Online Marketing – Search Engine Optimization on Google/Social Media Integration
 Radio
 Magazines
 Joint Promotions with Tourism Promotion Bureau or Sponsor
 Prestigious Balls on a selective basis

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 Sales Flyers and News Highlights
 Outdoor and Indoor Sporting Events
 Press Briefings / Press Releases
 Presentation of Coffee Mornings
 Agents Seminars
7. ONLINE AIRLINES IN SRI LANKA
8. AIR CARGO

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1. INTRODUCTION
Opportunity
Opportunity is available for ETHIOPIAN AIRLINES to maximize its presence and to reach the
lucrative passenger/cargo market in Sri Lanka, thereby to increase revenue/yields. Key to
achieve this potential is to develop and implement the right business plan and marketing
strategy through a General Service Agreement.
About this Document
This document highlights the skills and expertise that we could give to help ETHIOPIAN
AIRLINES online operation in Sri Lanka. It also outlines in broad terms our proposed business
plan and marketing strategy. The business plan addresses a number of initiatives we have seen
as necessary to maximize the potential of the online carrier in the market.
2. MISSION STATEMENT
“To create a profitable business environment for ETHIOPIAN AIRLINES to market
its products in Sri Lanka by reinforcing its presence and brand awareness within.
3. ADVERTISING STATEMENT
To position ETHIOPIAN AIRLINES in the market as a reliable and leading international
carrier operating services to destinations in Africa, Europe, United States and
Canadian.
4. BUSINESS PLAN
Proposal
Our business plan offers ETHIOPIAN AIRLINES the opportunity to maximize its revenue
potential in the Sri Lankan market. Its key aspect is the marketing strategy. This programme is
structured to allow its implementation in a series of stages. Each stage would be initiated in
response to sales growth and availability of promotional funds. Our marketing strategy
identifies a series of niche markets, which are to be targeted in stages.

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The targeted markets are:
• Expatriate population in Sri Lanka
• Consolidators and Retail Travel Agents
• Tour Operators
• Business Travellers-Locals/Expatriates
• Holiday and General Travellers
• Employment/Student/Seaman Traffic
Our marketing strategy would position ETHIOPIAN AIRLINES as a modern International
carrier providing safe, efficient and reliable travel services between Colombo and the airlines
network of destinations, at economical prices.
Services
As ETHIOPIAN AIRLINES GSA, We would provide the following services:
• Comprehensive ground support such as ticketing, passengers and cargo
services
• Account functions – Remittances/Sales Returns, etc.
• Management and Information reports
• Provision of bank guarantees
• Provision of experienced, professionally skilled and competent staff to
handle all aspects of the airline.
• Provision for the infrastructure and comfortable office space in a city location
with ample parking facility.
Communication of Information
As the GSA, to ETHIOPIAN AIRLINES we believe that communication of information plays an
important role in the interest of both parties. This aspect extends, but not limited to the
provision of :
• detailed, accurate and up-to-date market information on a consistent basis.
• consultation and regular reports on all aspects of the GSA operations at
appropriate intervals.
• reports on the political, economic and security environment of Sri Lanka on a
periodic basis.

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Combining of Skills
VMS Aviation Air Services will in consultation with the Country Manager of ETHIOPIAN
AIRLINES, co-ordinate all aspects of the GSA operations by strictly adhering to the policy and
procedures of the principal:
• Strategic Planning
• Product and Pricing
• Marketing – including Advertising and Promotions
• Sales
• Management
• Accounting
• Airport Operations
Market Research
Market research would include an in-depth analysis of competitive fares, agent commissions,
incentives, cost structures and trends in the local market relevant to ETHIOPIAN AIRLINES
operations.
Expertise
GSA would provide ETHIOPIAN AIRLINES with extensive sales and marketing support in
consultation with its local management. Our personnel include professionals from the airline –
travel industry with decades of experience.
Sales and Marketing
VMS Aviation Air Services Pvt Ltd would provide support to the carrier to market its current
products and also promote new destinations as they are progressively introduced. Our network
of branches throughout Sri Lanka would boost sales and marketing process.
Fare Structure
Our fare structure objective would be to maximize returns to the online carrier within the
prevailing seasonal market conditions. Special attention would be focused to maximize
passenger numbers on long haul sectors to increase revenue, these includes :

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• Special Interest
• General
• Tour
• Holiday
• Corporate
While each individual campaign would be tailor made to achieve optimum impact on its target,
a combination thereof would help to enhance the public brand awareness. This would result in
the generation of additional revenue and yield.

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5. OBJECTIVES
TO EXPAND ETHIOPIAN AIRLINES OPERATIONS &
REVENUE POTENTIAL IN SRI LANKA
1) SHORT TERM OBJECTIVE
To stabilize ETHIOPIAN AIRLINES passenger numbers in economy class,
especially within its network to achieve a viable operation to maintain route
profitability.
2) MEDIUM TERM OBJECTIVE
To sustain and improve ETHIOPIAN AIRLINES passenger numbers/yield in
economy class to expand its revenue base progressively in relation to the
number of frequencies.
3) LONG TERM OBJECTIVE
To work towards increasing ETHIOPIAN AIRLINES market share in Sri
Lanka through diversification, partnerships, synergies and linkages of new
routes, markets and destinations.
6. ADVERTISING
COMMUNICATION CHANNELS
The following channels of communication are available for strategic and tactical exposure:
1) Television
2) Print Media - Newspapers - English/Sinhalese/Tamil
3) Billboards in Strategic Locations
4) Online Marketing – Search Engine Optimization on Google/Social Media Integration
5) Radio
6) Magazines
7) Joint Promotions with Tourist Promotional Bureau or Sponsor
8) Prestigious Balls on a selective basis
9) Sales Flyers and News Highlights
10) Outdoor and Indoor Sporting Events

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11) Periodical Press Briefings
12) Presentation of Coffee Mornings
13) Agents Seminars
TELEVISION
The electronic media in the country has grown in importance and by far is the most popular and
powerful source of communication to most parts in the Island. TV channels are frequently and
widely used by many companies as an effective vehicle to communicate and push products and
services targeted at different market segments. Sri Lanka’s national carrier and a few other
leading foreign airlines use this media to run their commercials.
PRINT MEDIA - NEWSPAPERS
Print is considered an effective means of communicating tactical messages which all airlines are
adapting to
BILLBOARDS/HOARDINGS
Statistics indicate there has been an upward trend in this form of advertising lately. However,
the general consensus amongst the advertising world is that it is expensive and the return for
money is relatively poor.
ONLINE MARKETING
Technology if harnessed correctly can help organizations to cut costs and run more efficiently.
The internet itself is also a powerful marketing tool. Optimizing websites could lead to very
profitable markets. They organically rank high on search engines such as google when specific
keywords such as “flights” and “Addis Ababa” etc. are entered. Paid advertising on google using
their Adwords component is also an option. Social integration with Facebook and Twitter is not
only free but extremely beneficial in terms of brand exposure.
RADIO
With a wide variety of channels and target demographics, radio has been, and continues to be a
profitable avenue for advertising in Sri Lanka.

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MAGAZINES
Lanka Monthly Digest and Business Today are the two reputable and most sought-after
monthly magazines in circulation in Sri Lanka, with a readership of approximately
10,000/12,000 respectively. Both magazines contain useful information, substance and quality -
thus, making them a useful tool for communication amongst the upper crust of society.
JOINT PROMOTIONS
This form of promotion is particularly useful to reduce costs when budgets take a beating.
However it is prudent to pick the right partner of a similar status and reputation to enhance and
complement each other’s image.
PRESTIGIOUS DINNER DANCES
This is a soft platform commonly used by many, to gain mileage by granting tickets at selective
prestigious DINNER DANCES. The objective can be either for strategic or tactical advantage.
However, the key is to ensure the value is not diluted by other sponsors so that being exclusive
would be productive.
SALES FLYERS AND NEWS HIGHLIGHTS
This is comparatively an expensive mechanism of expanding your reach to selective target
markets and these factors would be given due to consideration in this regard. These factors
would be given due consideration.
INDOOR / OUTDOOR SPORTING EVENTS
This exercise is primarily to generate goodwill amongst our key revenue contributors and a
productive platform to interact and exchange ideas. Such occasions can be used to our
advantage when promoting new destinations, new generation of aircraft, and increases in flight
frequency, new routes, etc. Due to the frequent misinterpretation of facts and substandard
reporting standards by the local press, it is recommended that at the conclusion of the meeting
to distribute handouts reflecting the news release to the representatives present to ensure
accuracy. Cordial relationships with key personnel at leading newspapers should be established
to gain maximum exposure.

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PRESS BRIEFINGS AND PRESS RELEASES
Organizing Press Briefings to ensure that the press accurately pick up and take interest in the
messages that ETHIOPIAN AIRLINES wishes to send out is a viable option. Carefully
constructed Press Releases that can be distributed at low cost can also increase brand
awareness.
COFFEE MORNINGS & SIMILAR EVENTS
These events are organized by many professional associations and organizations year-round
such as the Chartered Secretaries Associations, Foreign Embassies and leading hoteliers, etc. A
database is in place to target these events at a minimum cost.
AGENTS SEMINARS
It is an accepted norm amongst airlines that 70% - 80% of total revenue is accrued through
travel agents. Hence, a series of low cost update seminars directed at various levels of staff,
based on the agenda is imperative. This is to educate, help, sustain and reinforce loyalty and
support. A roster should be in place to activate these seminars.

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7. ONLINE AIRLINES IN SRI LANKA
Online Airlines in Sri Lanka that are currently in operation:
Airline Frequency Equipment
SQ 7 X WEEKLY TO SINGAPORE B777
BA 3 X WEEKLY TO GATWICK B777
CX 7 X WEEKLY TO HONG KONG B777
TG 4 X WEEKLY TO BANGKOK A300
EK 14 X WEEKLY TO DUBAI B773/777
QR 21 X WEEKLY TO DOHA A321
KU 05 X WEEKLY TO KUWAIT A300
KE 03 X WEEKLY TO SEOUL A330
SV 04 X WEEKLY TO SAUDI ARABIA B747
MH 05 X WEEKLY TO KUALA LUMPUR B737
IC 07 X WEEKLY TO CHENNAI A320
MU 03 X WEEKLY TO KUMMING B737
IX 07 X WEEKLY TO CHENNAI B738
G9 09 X WEEKLY TO SHARJAH A320
9W 07 X WEEKLY TO CHENNAI B73H
TK 04 X WEEKLY TO ISTANBUL A330
FZ 14 X WEEKLY TO DUBAI B737-800
SG 14 X WEEKLY TO CHENNAI / MADURAI DH8-300
RG 03 X WEEKLY TO ABU DHABI A319
8. AIR CARGO
ADDING PROFITABILITY
On some routes, where ticket sales alone do not generate sufficient revenue, adding a strong
air cargo business would enable the service to operate in profit.
EXPERTISE
VMS AVIATION AIR SERVICES could offer considerable expertise in developing an air cargo
operation for ETHIOPIAN AIRLINES
Maximizing profitability of the operation by optimizing the mix of cargo is the key. We will
provide a comprehensive report detailing the business plan and the marketing programme at
appropriate time.

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We also append below the main export commodities that are airfreight out of Colombo.
Items:
1. Garments ( Flat Pack)
2. Garments (GOH)
3. Food Stuff (Inclusive of Vegetables/Fruits)
4. Beetle Leaves
5. Live Fish
6. Live Plants
7. Cut Flowers
8. General Cargo
FACTORS TO CONSIDER FOR A VIABLE OPERATION TO COLOMBO
- Small office space at the airport for ET
- Station Manager is not required as we have the expertise to handle an online operation
- Initially the type of Aircraft to operate into Colombo 757
- Negotiate on the fuel price in Colombo
- Negotiate catering rates in Colombo with Sri Lankan Catering
- Negotiate Ground Handling rates with Sri Lankan Airlines
- Target Inbound traffic into Colombo from all ET online destinations
- Target the African Market / Europe and North America