Egypt Air to be restructured after almost $1bn loss
State-owned aviation company, Egypt Air Holding, will be undergoing a radical restructuring after it lost almost one billion dollar within 4 years. Sabre Airline Solutions, an airline advisory firm in Texas, has been contracted to help the company get back to its heydays. The plan is expected to last for five and half years.
Egypt Air started registering losses in 2010 ahead of the political crises and social unrest in the country. Potential investors and tourists stayed away from the country but the country has started to notice a steady increase of their return in 2014. The company has cumulated within, the past three Egyptian fiscal years which ends in June, $966.99 million is losses. 2014 is not expected to be a profitable year.
President Sameh Hafni of the company has stressed that there will be a radical change in business, financial, administrative and operational structures before pointing out that much more attention will be given to two of the company’s subsidiaries; Egypt Air Airlines and Egypt Air Express.
Alessandro Ciancimino, vice president consulting at Sabre, said the company would implement its restructuring plan over the next five and a half years. However, the company is expected to begin making profits by mid-2016. Sabre has had an experience with Egypt Air when it consulted it in 1997.
Competition in the Middle East and North Africa’s aviation sector has been tense with several companies increasing the number of their fleets, destinations and providing lucrative offers. Egypt has been trailing behind due to the country’s unrest.
Egypt Air was established 82years ago and has been active in providing ground services and in-flight services through its subsidiaries. It has a fleet of 81 aircraft and carries nearly 8 million passengers annually.