Ethiopian Airlines, the government-run state airline of my adopted country has a good record of providing safe, on-time international service, where they have lots of competition (Emirates, Kenya Airways, Turkish Air, etc). Now, about the domestic flights:
They pretty much go wherever they like, whenever they like, and published schedules be damned. In one record-setting run, L and I spent nine late-flight waiting hours over the course of three domestic flights. This is time beyond the scheduled departure. In another instance, the flight from Addis to Bahir Dar first went to Gondor because... well, just because. On my first flight from Axum to Addis, we started back down after only about 25 minutes in the air (Axum-Addis takes more than an hour.) We landed it Lalibela because once he was in the air the pilot figured out he didn't have enough gas to get to Addis. In Lalibela, the guy who had the keys to the gas truck was somewhere in town eating lunch, so we waited 2-1/2 hours for someone to find him so we could gas up the plane and return to Addis. Once a flight left Bahir Dar one full hour early, because the plane was there and ready to go.
The Airline's standard response to complaints about their indifference and buffoonery is that they don't make any money on domestic flights. They say they can't raise rates to cover their costs and make a profit because nobody on domestic flights would be able to afford it. But the flights are always fully booked a week or two in advance. Does this make sense from a business standpoint?
Or could it be that, as with the telecommunications industry, a lack of competition lets them do whatever they please with no risk of loss of business?