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- Administerial Complex, South Building 2nd Floor
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- Cairo International Airport
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South African Airways
The national carrier of the Arab Republic of Egypt, EgyptAir is based at Cairo International Airport. The airline's network includes extensive domestic and regional scheduled passenger and freight services within Egypt and Africa as well as international services to Europe, Asia, the Middle East and North America. EgyptAir is among the largest carriers on the African continent and became a member of the Star Alliance in Jul-2008. EgyptAir Cargo is the airlines dedicated cargo division serving Europe, Africa and the Middle East.
Location of EgyptAir main hub (Cairo International Airport)
412 total articles
40 total articles
The current political turmoil in Egypt has led to a number of European nations advising their citizens not to travel to the North African country. The response by airlines has varied, but a number have announced the suspension of flights. Whether flights are suspended or not, demand for travel to Egypt will be hit by the ongoing news coverage of events there and the advice of many European governments.
In this report, we examine the importance of European airlines to the air travel market in Egypt and the importance of Egypt to European airlines. Egypt may need European airlines more than they need it, but Egypt represents a noticeable (and in some cases growing) proportion of the total network for a number of them. The year-round attraction of Egypt as a leisure destination, contrasting with the summer-only appeal of other destinations, means that this proportion is greater in the winter than in the summer for many European carriers.
Arik Air, Western Africa’s largest carrier, looks set to start delivering on some of its often repeated long-haul growth plans with the arrival the first of four A330-200s, with the second due by the end of Jul-2013.
The new aircraft are aimed at increasing frequencies on some existing services, including Lagos to New York, while also opening new routes with Sao Paulo high on the list. Arik states that other opportunities include China, United Arab Emirates and more points in Europe and the United States.
In addition Arik has placed firm orders for Bombardier CRJ1000 NextGen regional jets and Q400 NextGen turboprops as the carrier looks to expand its regional network beyond Western Africa.
But the carrier, which is heavily indebted to the government, also faces the prospect of another new national carrier being launched by the end of 2014 to provide domestic, regional and intercontinental competition.
EgyptAir is pursuing rapid expansion in Africa as it looks to drive further increases in transit traffic, which has helped the carrier recover from the crisis of early 2011. The Star Alliance carrier expects to post a break-even result for the fiscal year ending 30-Jun-2013 (FY2013) and be back in the black in FY2014, featuring a vastly different and more balanced network than it had prior to the Jan-2011 revolution.
Over the last two years EgyptAir has more than doubled its international capacity within Africa, albeit from a modest base. The increased focus on Africa will continue in 2H2013 as four more destinations are added.
Africa and a bigger operation in the nearby Middle East has helped EgyptAir reduce its reliance on Europe in the aftermath of the crisis, which led to a significant drop in inbound tourist traffic. The larger regional network also has supported a significant increase in transit traffic, from only 3% prior to the crisis to about 17% currently. The increase in transit traffic along with more local traffic within the Middle East/Africa region, where demand has been rising rapidly, significantly improves EgyptAir’s outlook.
EgyptAir continues to make massive losses as the carrier and Egypt struggle to recover from the Jan-2011 revolution which resulted in the airline moving into crisis mode for two months when it was forced to temporarily ground up to 40% of its fleet and as 80% of revenue evaporated.
Egypt’s Minister of Civil Aviation Wael al-Maddawy reportedly told the Shura Council Transportation Committee in Mar-2013 that losses at the national carrier had reached more than EGP6 billion (USD885 million) since the revolution. EgyptAir is yet to publicly release its annual report for FY2012 which ended 30-Jun-2012, but Mr Maddawy said EGP650 million (USD95.7 million) of the losses were due to the weakening of the EGP to the USD.
“EgyptAir’s losses are huge, but not catastrophic, [as they won’t] lead to the closure or selling of the company,” Mr Maddawy said. The carrier is burdened with 32,000 employees, when it needs just 12,000 to operate the carrier. Some 20,000 more employees than it needs. However, the carrier is prevented from reducing its headcount due to the prevailing social circumstances, according to Mr Maddawy.
Libya has mounted a strong economic recovery, enticing international carriers to rapidly rebuild their capacity, withdrawn after a bloody revolution engulfed the northern African state in Feb-2011.
The country’s two state-owned airlines, Libyan Air and Afriqiyah Airlines, which both suffered extensive damage to aircraft, resumed operations late 2011 and are gradually reestablishing their pre-war networks as aircraft return to service.
Their initial focus has been on linking key economic and political partners around the Mediterranean, including Turkey, and to the Middle East as well as Britain.
A merger of the two carriers is also progressing slowly though earlier expectations of a union in the first half of 2013 appear to have been put back to at least early 2014.
Meanwhile Turkish Airlines, Tunisair and EgyptAir lead the foreign airline capacity levels reintroduced.
The once-sleepy market in west Africa continues to prove dynamic, even if occurrences are two steps forward and one step backwards. In the category of the latter, once promising Air Nigeria has suspended operations after a high profile few months that included staff strikes, rumours and two groundings by the regulator. Political interference was thrown into the mix, with a police raid over taxes unpaid from a previous owner. The airline leaves a gap in the high demand Lagos-London market as well as domestic and regional routes.
The situation is more stable in Ghana, whose smaller market but stronger regulations have attracted new carriers. And more may be on their way: South African Airways wants to establish a regional hub in Accra as well as export its lower-cost units in a bid to have a pan-African network. EgyptAir has proposed investing in a small Ghanian carrier to further its reach, a growing sign that Africa will see robust competition rather than the obscure and surprise announcement in 2010 from EgyptAir, Ethiopian Airlines and SAA to seek broad cooperation with each other.
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