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The company was financed by the Ethiopian government but managed by TWA.

At the beginning, it relied upon American pilots, technicians, administrators and accountants; even its General Managers were from TWA., with a key point of the agenda being the deposit of E£75,000 in a bank in Cairo for the acquisition of aircraft and spare parts.

The second fatal accident took place on 5 September 1961 when another DC-3 crashed shortly after takeoff from Sendafar; a flight attendant and four passengers lost their lives in the accident.

The event urged the Civil Aviation Department to investigate the accidents.

Aden was under British rule at the time as was Sudan, and the British Empire denied EAL landing rights at Khartoum, forcing the airline to move the refueling stop on the Aden route to Port Sudan.

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Landing sites at Gore, Mizan Teferi and Tippi were included in the list of airfields that would require closure.On 1 April, the Boeing 720 replaced the DC-6B on the Addis Ababa–Athens route; during that month, the West African corridor also benefited from jet operations.The airline entered into a pool agreement with Aden Airways and Sudan Airways on the Khartoum–Asmara–Aden service.On 13 January 1962, the crew and four passengers lost their lives in another accident involving a DC-3 when one of these aircraft was deployed on the route to Nairobi.The following day, a new service to Madrid was flown using the new jet equipment, with Frankfurt joining the jet network soon afterward.

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