This research has been done to solve the relatively poor performance problem ofrndifferent public companies and enhance economic growth of Ethiopian economyrnthrough public sector capacity building. Accordingly, this study examined the successrnof Ethiopian Airlines, its determinant factors as well as lessons that can be taken byrnother public companies from its experience. In doing that, descriptive as well asrneconometric analysis based on performance indicators and endogenous growth modelrnare respectively used.rn-------'lThe-resttlts--etf--tleseripti-ve--ltfftlys-is-itlciieale Ihftl ...... Ethitlpiftft--Ait>lines-is-a-sl:leeessfu-l-------'enterprise.rnThis is mainly because the airline is a profitable, with a culture of continuousrnimprovement, paramount productivity growth, higher market share etc. In this regard,rnseveral factors have contributed for the success of thc airline: its working standard,rnoverall system, dedication of workforce, safety trend, best practice, current andrnrecurrent trainings, formation history, state art teclmology, autonomous management, itsrnmarket strategy, visionary leadership style etc. Similarly, the results of econometricrnanalysis reveal that the major determinants for the growth/success of Ethiopian Airlinesrnare physical capital accumulation and human capital creation. Therefore, it is therncombination of the earlier qualitative determinants with both physical and humanrncapital that has played a significant role for its success. Finally, based on the findings,rngovernment and different public enterprises can take the aforementioned successrnleading factors as a lesson. Provided that different public enterprises have differentrncharacter of their own that they should apply everything based on the type of theirrnbusiness.