Getachew Tadesse, a management board member of the Ethiopian Airlines, remembers his first impression when he entered the premises of this, Africa's oldest carrier. He was one of the 60 people recruited for a temporary job, helping the company change its stock cards to a mechanized system.

He has had a brief stay with another state owned company whose name he does not wish to reveal. Unlike his previous experience, he was captivated how clean the restrooms were, with all the amenities available, and the floors of the store as reflective as mirror.

"I felt I was in one of those places I saw in a movie," recalled Getachew. That was 1968. "The strength of Ethiopian lies on its foundation."

Established five years after the country regained its independence from the Italian occupation forces, with the support of TWA, an American carrier, and in order to fulfil the personal dreams of Emperor Haile Sellasie, the Ethiopian Airlines today has been showered with praises while celebrating its 60th birthday. For many, it is a symbol of institutional success, a quality in short supply in Africa.

Abdul Mohammed, executive director of InterAfrica Group, called it "an icon of defining success." For Ishac Diwan, country director of the World Bank for Ethiopia and Sudan, it denotes how an African company can surf in a highly competitive global environment, while not protected as companies such as its counterpart in the telecom sector.

Dr. Arega Yirdaw, CEO of MIDROC Ethiopia, who once served the airline as an engineer, feels it is a disservice to compare the national carrier with other state owned companies.

"Ethiopian was an island of its own in Addis Abeba," said Arega. "The way it was operated was very different."

It is known for its well-structured organization and the efficient manner business has always been processed. Its over 5,000 staff are credited for being cultured, focused and devoted to the success of their company.

"It is an example to other Ethiopian companies on what they could do in the international market," he said.

The Ethiopian Airlines brings to the country over half a billion dollars, representing 20pc-25pc of the annual foreign exchange generation capacity of the country.

"It is a lesson that should not be lost by others."

It has managed to weather through several storms, surviving three governments and managed by 14 chief executive officers. It has now found a new chief, of barely two years, who seems to understand that Ethiopian's fate lies in its future and not in its past glory.

"The future is known," said Girma Wake, delivering an inspirational speech in a style a leader of a country could have made. "It is what we make it."

What the airlines wants in the future is to expand its revenue to become a one billion dollars a year company. It is confronted with a web of challenges, though: stiff competition is around the corner, due to liberalization of the aviation industry; while its pilots and most trained technicians are leaving it for better opportunities. Within the last year alone, the airline has lost 14 of its highly trained pilots to the competition.

"The pace of those migrating is faster than the changes taking place," admits Getachew Tadesse.

With the help of a private consulting firm, Ernst & Young, the Ethiopian Airlines is trying to chart a new course at the age of 60, which Junadin Sado, minister of Transport and Communications, said could not be considered old for an industry.

"Never be satisfied from pursuing new frontiers," advised Minister Junadin.

In fact, the management is departing from the traditional business processing method but caught up in choosing one of the two models major airlines are employing these days.

The first model, known within the aviation industry as virtual airline, is one used by airlines such as British Airways that out sources all the services - from cargo to passengers, and from catering to maintenance - with the exception of the core airline. Looking at the chart, it is very difficult see what could remain as a core airline business.

The second alternative is the aviation business model followed by the German Lufthansa. It is where companies in the aviation business keep the core airline business and integrate all the other services. The subsidiaries created to provide the various services are, however, recognized businesses by their own rights, providing their services not only to their respective parent companies, but also to the whole industry.

Although this model seems to suit the interests and aspirations of the managers of Ethiopian Airlines, the company, understandably, has limitations in terms of resources and market size.

The greatest challenge for an airline such as Ethiopian is its size. Being a mid-size airline, it is too fragile to assume its position competing against major global players in the aviation industry, but too big to keep itself satisfied with a regional niche market.     

In order to meet its ambition of reaching the one billion dollars annual revenue in four years, the airline targets to grow by 20pc a year. Sceptics wonder how a company, oversize itself, plans to grow more than the forecasted growth of the industry itself, five to six per cent in this case.

Mr. Diwan described the "low cost and high quality" approach Ethiopian wants to employ to achieve its target of growth as rather "a magic formula". But he believes creating an integrated business model will likely service the Ethiopian better, with emphasis on both training and aircraft maintenance.

Nevertheless, he sees soliciting funds to finance its growth is a matter of concern. Whatever amount it is to borrow, he described it as "contingent debt" to the country.

He was well received by the audience met at the UNECA on Wednesday, May 3, when he suggested the government to seriously consider divesting 20pc of the airline to the public, in order to expand its equity base.

"It will be too risky for Ethiopian to continue solely owned by the government," said a senior management member of Ethiopian. "Sooner or later, the government has to think of privatisation."

Arega could not agree more. He advised the sooner this happens, the better is for the company.