The Central Bank of Lebanon owns 99.37% of MEA's shares and acquired them in 1996 to save the airline from bankruptcy. However, MEA is now a profit-making company and calls for privatization were first brought up back in 2002, but due to the poor climate in the airline industry following 9/11, the government decided to postpone privatization until the climate improved.
Last December, MEA's CEO, Mohammad El Hout announced that MEA would list up to 20% of its shares in the Beirut Stock Exchange this summer as part of plans to fully privatize the airline. http://www.bse.com.lb
He also announced that MEA would be adding an aircraft in 2007 and another one in 2008. They will be Airbuses, with one expected to be an A330-200 and the other an A321-200.
He also announced that the airline is looking to acquire 50-70 seat regional jets to be used on regional routes.
Last August, MEA inaugurated its new and expanded state-of-the-art Cedar Lounge for premium passengers. It can accomodate up to 300 passengers.
Last year also, MEA launched its new website which offers online booking. http://www.mea.com.lb
MEA will be introducing self check-in kiosks at Beirut airport later this year and is working to implement e-ticketing.
Early next year, MEA will join the SkyTeam Alliance as an associate member through its partner, Air France.
Middle East Airlines (MEA), which celebrated its 60th anniversary last year, is the national carrier of Lebanon based at Beirut's Rafic Hariri International Airport and serves 1.2 million passengers annually to 26 destinations in the Middle East, Europe, and West Africa with a modern fleet of six Airbus A321-200 and three Airbus A330-200 aircraft. It's current airline partners are Air France and Qatar Airways.
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 2, posted (7 years 2 months 1 week 4 days 2 hours ago) and read 2805 times:
Quoting Moe777 (Reply 1): Does this mean will see new Lebanese airlines starting up or Menajet being granted full rights to operate scheduled sevices once MEA is privatized?
No, that's a completely separate issue.
That issue is related to a government decree signed in 1992 lasting until 2012 that grants MEA exclusivity on scheduled flights from Lebanon. It was signed at a time when MEA just came out of the war and was facing serious financial trouble.
Whether the decree will be annulled before 2012 or not is another story. Time will tell...
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
MSYYZ From Canada, joined Oct 2005, 846 posts, RR: 9 Reply 5, posted (7 years 2 months 1 week 3 days 17 hours ago) and read 2752 times:
Good news for MEA , Egypt Air had a similar move by selling 20% of its shares to the public but it didn't go that far with privatization plans .
In my opinion , state-owned Airlines ( or companies in general ) just don't work .
Rolfen From Germany, joined Jan 2006, 1764 posts, RR: 2 Reply 6, posted (7 years 2 months 1 week 3 days 15 hours ago) and read 2728 times:
How MEA makes profit, despite what I consider to be prohibitive pricing is a mystery to me. They sometimes charge double of what other international carriers charge, which is why I haven't flow with them for a long time.
Quoting MSYYZ (Reply 5): In my opinion , state-owned Airlines ( or companies in general ) just don't work .
MEA did great, considering their previous situation. Yet it is owned by the bank of lebanon, a very respectable institution in a country well known for the it's banking sector. Had it been a state institution, I dont think that it would have done anywhere that good.
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 7, posted (7 years 2 months 1 week 3 days 15 hours ago) and read 2720 times:
Quoting FlySSC (Reply 3): Any chances to see a foreign airline allowed to buy enough shares to have the majority in MEA ?
I heard some "rumors" about this few weeks ago but nothing confirmed.
Hmmm................ I wonder who it could be..................... that's a tough one.
Quoting FOMEA (Reply 4): Hmmmm, I wonder what Airline will be interested in Buying Enough shares to have the majority in MEA ??
smile
Quoting Rolfen (Reply 6): How MEA makes profit, despite what I consider to be prohibitive pricing is a mystery to me. They sometimes charge double of what other international carriers charge, which is why I haven't flow with them for a long time.
You know, this hasn't been my experience at all. I have found that MEA usually tends to match the fares of the other airlines on the same route and if not, only a little bit more expensive and in some cases the other way around.
Airlines do play around with fares a lot, however, I'll tell you that. Depending on where you buy the tickets from, there could be a huge fare gap.
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
FOMEA From Lebanon, joined Jul 2005, 847 posts, RR: 58 Reply 8, posted (7 years 2 months 1 week 2 days 13 hours ago) and read 2651 times:
Quoting BA (Reply 7): Airlines do play around with fares a lot, however, I'll tell you that. Depending on where you buy the tickets from, there could be a huge fare gap
You have a point there BA.
I was actually researching prices for my sister from BEY to ATH and back.
MEA'S site displayed way cheaper prices than OA and CY.
OA and CY prices were from Yahoo.
Lets hope they do well on the KWI Routes.
Since Jazeera announced that it has increased its Beirut flights from seven per week to 11 per week.
Regards
F-OMEA.
Don't argue with an idiot; people watching may not be able to tell the difference.
A342 From Germany, joined Jul 2005, 4655 posts, RR: 4 Reply 9, posted (7 years 2 months 1 week 2 days 10 hours ago) and read 2629 times:
Quoting Rolfen (Reply 6): Quoting MSYYZ (Reply 5):
In my opinion , state-owned Airlines ( or companies in general ) just don't work .
MEA did great, considering their previous situation. Yet it is owned by the bank of lebanon, a very respectable institution in a country well known for the it's banking sector. Had it been a state institution, I dont think that it would have done anywhere that good.
That´s fine, but now that MEA is profitable, why should the bank sell it ? Why not benefiting from the profit ? If other airlines are given the same rights as MEA I don´t see why anyone should be worried about competition issues.
Of course, if MEA is privatized, this also means lot of money, but which method is more beneficial for bank seen in the long term ?
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 10, posted (7 years 2 months 1 week 2 days 8 hours ago) and read 2608 times:
Quoting A342 (Reply 9): That´s fine, but now that MEA is profitable, why should the bank sell it ? Why not benefiting from the profit ? If other airlines are given the same rights as MEA I don´t see why anyone should be worried about competition issues.
Of course, if MEA is privatized, this also means lot of money, but which method is more beneficial for bank seen in the long term ?
It's the government bank and the government wants to privatize many institutions such as the electricity, telecommunications, etc.
MEA will be able to raise more capital when privatized, which means it could grow more than it could if it remains under the Central Bank.
It will have more freedom when it is out of government hands.
MEA was never government-owned until 1996. Prior to that, it has always been privately owned and operated.
MEA was founded in 1945 by Saeb Salam, a wealthy Lebanese who would serve as Prime Minister of Lebanon several times.
He founded MEA with other close friends and family members along with the help of BOAC.
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
As mentioned earlier, 99.37% of the shares of Middle East Airlines / Air Liban SAL are owned by the Central Bank of Lebanon.
Middle East Airlines / Air Liban SAL also owns 100% of the shares in the following three joint stock companies:
Middle East Airports Services SAL - Marketed as Middle East Airports Services (MEAS)
- Operates and maintains Beirut's Rafic Hariri International Airport from cleaning the rest rooms in the terminal to de-rubberizing the runways.
Middle East Airlines Ground Handling SAL - Marketed as Middle East Airlines Ground Handling (MEAG)
- The dominant ground handling company in Beirut's Rafic Hariri International Airport handling nearly 80% of all customers. Recently launched fixed base operator services from the new General Aviation Terminal under the name Cedar Jet Center.
Mideast Aircraft Services Company SAL - Marketed as Mideast Aircraft Services Company (MASCO)
- The only fully-fledged aircraft maintenance provider in Beirut's Rafic Hariri International Airport specialized in maintaining Airbus aircraft. The company is PART 145 certified which allows it to carry maintenance on European registered aircraft. Main clients include Cyprus Airways.
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 12, posted (7 years 2 months 1 week 2 hours ago) and read 2512 times:
Quoting FlySSC (Reply 3): Any chances to see a foreign airline allowed to buy enough shares to have the majority in MEA ?
I dunno about any airlines, but Homeric Tours is expressing interest, and I think I might plunk down cash for a few thousand shares.
Quoting BA (Reply 10): He founded MEA with other close friends and family members along with the help of BOAC.
That explains their equipment choices in the Comet and VC-10's, eh?
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 14, posted (7 years 2 months 6 days 13 hours ago) and read 2458 times:
Quoting WesternA318 (Reply 12): I dunno about any airlines, but Homeric Tours is expressing interest, and I think I might plunk down cash for a few thousand shares.
Interesting. I just googled Homeric Tours and found out they are a US vacation company offering vacation packages to Greece. Are you sure they are interested in buying shares in MEA? And for what reason?
Quoting WesternA318 (Reply 12): That explains their equipment choices in the Comet and VC-10's, eh?
MEA owned 4 Comets and leased a couple for short periods.
3 of the 4 Comets MEA owned were destroyed in a surprise Israeli commando raid in December 1968. This prompted MEA to get secondhand 707s and 720s from American Airlines to replace the ones they lost and the sole remaining one that survived.
MEA only operated 2 VC-10s throughout its history and were short-term leases from airlines.
One of them was leased from Ghana Airways and this aircraft was destroyed in that same Israeli raid (14 aircraft total were destroyed).
The 2nd one was leased for a short while from Laker Airways until more second hand 707s and 720s arrived to replace the aircraft MEA had lost (they lost 2/3s of their fleet in that attack).
Quoting MOE777 (Reply 13): Do you think Emirates would take any interest?
I don't know and I hope not...
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 15, posted (7 years 2 months 6 days 11 hours ago) and read 2444 times:
Quoting BA (Reply 14): Interesting. I just googled Homeric Tours and found out they are a US vacation company offering vacation packages to Greece. Are you sure they are interested in buying shares in MEA? And for what reason?
I was at Homeric Tours for the last two and a half years before joining Continental. The owner, Nikos Tsakanikas, has always expressed interest in getting a piece of either MEA, EgyptAir, Cyprus Airways, or Kuwait Airways to boost his share of Middle East offerings, of which his company does not have too many. We were already in the process of purchasing two A330-200's (with a further two on option) for delivery from 2008 and 2009, and after having a chat with him last weekend at his home on Long Island, he was saing about letting his offferings for Greece and Italy stay where they are (aside from the A330 deliveries), and focus more on Middle East and Northern Africa growth. He is working with several tour companies in Lebanon and Egypt, and having a good sized chunk of any airline mentioned above would be beneficial to Homeric's growth.
As for the interest in MEA, aside from what I mentioned above, the A330-200's would be compatible with Homeric's A330's, and the A321's would fit in nicely as well. Homeric's A330's will fly from JFK/EWR and BOS to ATH and CDG (if the options are taken up), which would connect to MEA's flights to Beirut.
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 16, posted (7 years 2 months 6 days 11 hours ago) and read 2435 times:
Quoting WesternA318 (Reply 15): I was at Homeric Tours for the last two and a half years before joining Continental. The owner, Nikos Tsakanikas, has always expressed interest in getting a piece of either MEA, EgyptAir, Cyprus Airways, or Kuwait Airways to boost his share of Middle East offerings, of which his company does not have too many. We were already in the process of purchasing two A330-200's (with a further two on option) for delivery from 2008 and 2009, and after having a chat with him last weekend at his home on Long Island, he was saing about letting his offferings for Greece and Italy stay where they are (aside from the A330 deliveries), and focus more on Middle East and Northern Africa growth. He is working with several tour companies in Lebanon and Egypt, and having a good sized chunk of any airline mentioned above would be beneficial to Homeric's growth.
As for the interest in MEA, aside from what I mentioned above, the A330-200's would be compatible with Homeric's A330's, and the A321's would fit in nicely as well. Homeric's A330's will fly from JFK/EWR and BOS to ATH and CDG (if the options are taken up), which would connect to MEA's flights to Beirut.
Thanks for the info.
Any idea what Homeric Tour's livery will look like? Any renderings?
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 17, posted (7 years 2 months 6 days 10 hours ago) and read 2420 times:
Quoting BA (Reply 16): Any idea what Homeric Tour's livery will look like? Any renderings?
From the original drawings I saw when we went to Toulouse, it's the company logo quartered on the tail, and a wavy blue cheatline to the nose. I'm wondering if the kids on the modified airliners website have anything yet, although I havent looked. Mr. Tsakanikas said a final decision on the livery wont come until after Homeric's charter flights (using Omni DC-10-30's) are over in early September.
Homeric still has me on the payroll as a consultant to the airline project, and what I'm trying to accomplish now is a sort of code-share agreement on CO at EWR for CO to bring domestic pax to EWR and connect onto Homeric's 332 to ATH from there. As for the JFK flight, that will be competing with OA and DL, and the Queens/Long Island/Manhattan area has enough O&D for Athens it won't harm the EWR operation at all.
The 332's will have a 3-class layout (first for the US-Athens market), First class (Homeric Wonder Class) will have 12 seats, with PTV's, lay-flat beds, and meal options that resemble American's Flagship Class meals. In Business Class (Homeric Adventure Class), 24 seats, the same seats as CO uses on it's 777's in BusinessFirst, In Economy (Homeric Explorer Class), 195 seats, all leather, at 36 inch pitch. The first plane is due to arrive in May 2008.
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 18, posted (7 years 2 months 6 days 5 hours ago) and read 2383 times:
Just an update from Homeric Tours about MEA:
Hey Y'all, I just got off the phone with Mr. Tsakanikas from Homeric Tours, and he said that he has been talking with the Central Bank to take over more than 53% of MEA. He wouldn't divulge any more info besides that.
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
MEA330 From Lebanon, joined Aug 2002, 268 posts, RR: 8 Reply 19, posted (7 years 2 months 6 days 2 hours ago) and read 2370 times:
From their website: "Since its inception 37 years ago, in 1969, Homeric Tours has grown to become one of the largest tour operators in the United States. "
I do not think that the Central Bank will sell to a foreign TOUR OPERATOR.
Most probably it will be a local institutional investor(Banks,..); strategic investor( Partner airline) or floated publicly on the Beirut Stock Exchange(BSE). A combination of the above 3 options is also possible: A majority of shares trading on the BSE, with a local institutional investor buying the rest in partnership with a foreign strategic airline.
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 20, posted (7 years 2 months 6 days 1 hour ago) and read 2365 times:
Quoting MEA330 (Reply 19): I do not think that the Central Bank will sell to a foreign TOUR OPERATOR.
Most probably it will be a local institutional investor(Banks,..); strategic investor( Partner airline) or floated publicly on the Beirut Stock Exchange(BSE). A combination of the above 3 options is also possible: A majority of shares trading on the BSE, with a local institutional investor buying the rest in partnership with a foreign strategic airline.
It's Greek owned, despite having offices in NY, and ANY bank would sell to whoever would give it the highest rate of return or profit. Personally, I'd LIKE to see it sold on the open market, I'd snap up a nice chunk of the shares if I could. As for a Foreign Strategic Airline, an operator of scheduled flight to and from the US to CDG or ATH to meet up with MEA isn't good enough?
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 21, posted (7 years 2 months 5 days 13 hours ago) and read 2319 times:
Quoting WesternA318 (Reply 18): Hey Y'all, I just got off the phone with Mr. Tsakanikas from Homeric Tours, and he said that he has been talking with the Central Bank to take over more than 53% of MEA. He wouldn't divulge any more info besides that.
Interesting. I am not entirely sure, but I don't think they want any investor to have a majority of the shares, but I'm not entirely sure. They still haven't developed the terms yet.
Quoting MEA330 (Reply 19): Most probably it will be a local institutional investor(Banks,..); strategic investor( Partner airline) or floated publicly on the Beirut Stock Exchange(BSE). A combination of the above 3 options is also possible: A majority of shares trading on the BSE, with a local institutional investor buying the rest in partnership with a foreign strategic airline.
This summer, 20% of the shares will be floated in the Beirut Stock Exchange, so I agree that it will probably be a combination.
Quoting WesternA318 (Reply 20): As for a Foreign Strategic Airline, an operator of scheduled flight to and from the US to CDG or ATH to meet up with MEA isn't good enough?
Since 1998, MEA has had a close partnership with Air France to funnel traffic via CDG to points around Europe as well as North and South America.
Together, they operate 3 daily flights between Beirut and Paris.
MEA flies a daily A321-200 and a daily A330-200, while Air France flies a daily 777-300ER.
That's 709 seats daily, which is quite a bit.
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 22, posted (7 years 2 months 5 days 12 hours ago) and read 2311 times:
Quoting BA (Reply 21): Since 1998, MEA has had a close partnership with Air France to funnel traffic via CDG to points around Europe as well as North and South America.
Together, they operate 3 daily flights between Beirut and Paris.
MEA flies a daily A321-200 and a daily A330-200, while Air France flies a daily 777-300ER.
That's 709 seats daily, which is quite a bit.
In my reply I was only stating as to Homeric's own soon to be started operations, taking into regard Air France's status and MEA to be an alliance partner in SkyTeam.
Quoting BA (Reply 21): This summer, 20% of the shares will be floated in the Beirut Stock Exchange, so I agree that it will probably be a combination.
Can American citizens purchase stock on the Beirut market? I'm interested in getting some shares myself.
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
BA From United States of America, joined May 2000, 11135 posts, RR: 61 Reply 23, posted (7 years 2 months 5 days 9 hours ago) and read 2287 times:
Quoting WesternA318 (Reply 22): Can American citizens purchase stock on the Beirut market?
Yes they can.
Here is the Beirut Stock Exchange website, although I'm not sure if you'll find any information that is helpful and I'm not sure how up to date it is. http://www.bse.com.lb
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
WesternA318 From United States of America, joined Oct 2004, 5395 posts, RR: 25 Reply 24, posted (7 years 2 months 5 days 9 hours ago) and read 2283 times:
Thanks so much for all your input BA, and welcome to my RU list!
Woohoo! Back to Beirut in Oct '13! (Along with a stop in DOH for 4 days)
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