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

This paper casts light on the financial aspect of managingrngrowth in Ethiopian Airlines. It addresses an importantrnissue in financial management attaining sustainablerngrowth especially in public enterprises. The study revealsrnthat the actual growth of the enterprise studied is not inrnharmony with the sustainable growth rate that should havernbeen achieved, for the period 1986-1999. However, there isrnsome improvement in the enterprise in management of growthrnafter the Public Enterprise (Reform) Proclamation No.rn25/1992.rnThe option of reducing dividend payout (i.e. increasing thernretention ratio) is beyond the firm's domain of decisionmaking,rnand the researcher recommends that this aspect bernconsidered in policy decisions by the government so as tornenable the firm to increase or decrease dividend payoutrnratio depending on its fund requirement. In addition, thernresearcher suggests that improvement in asset turnover andrnprofi tabili ty be considered to prevent problems of growthrnthat may arise. Increasing payload factor and reducingrncosts are suggested to achieve this objective.rnIV

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