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MEA Not For Sale.  
User currently offlineAlessandro From , joined Dec 1969, posts, RR:
Posted (5 years 8 months 3 weeks 11 hours ago) and read 2016 times:

Seem like the government of Lebanon wants to keep their controll over MEA, I always consider it like Alitalia, a nonprofit airline operated on political reasons.
http://www.dailystar.com.lb/article....n_id=1&categ_id=3&article_id=98813

5 replies: All unread, jump to last
 
User currently offlineBA From United States of America, joined May 2000, 11153 posts, RR: 58
Reply 1, posted (5 years 8 months 3 weeks 9 hours ago) and read 1950 times:

Quoting Alessandro (Thread starter):
Seem like the government of Lebanon wants to keep their controll over MEA

They want to maintain ownership of the company until market conditions are ripe to issue an IPO on the Beirut Stock Exchange (BSE).

MEA is incorporated under Lebanese law as a joint stock company (Société anonyme libanaise) with 99.37% of the shares owned by Banque du Liban, Lebanon's Central Bank. In practice, the government exerts very little control over MEA because of its incorporated status.

Keep in mind that the Lebanese government bailed out MEA back in 1996. Prior to that, MEA was completely privately owned. Ever since it's been restructured, the airline has been reporting nice profits, although it is still paying back its enormous past debt to the government.

Quoting Alessandro (Thread starter):
I always consider it like Alitalia, a nonprofit airline operated on political reasons.

A nonprofit airline?!?!?!?! How does $70 million profit for 2008 translate to being nonprofit?

MEA's profit returns over the past four years is the reason why some Lebanese politicians do not want to see MEA privatized.

This is no comparison to the Italian government and Alitalia, sorry.

[Edited 2009-01-02 17:29:08]


"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
User currently offlineAlessandro From , joined Dec 1969, posts, RR:
Reply 2, posted (5 years 8 months 3 weeks 9 hours ago) and read 1940 times:

MEA has costed the government, 500 Million US$ earlier, so it´s basically a way to pay back the old costs.

User currently offlineBA From United States of America, joined May 2000, 11153 posts, RR: 58
Reply 3, posted (5 years 8 months 3 weeks 8 hours ago) and read 1921 times:



Quoting Alessandro (Reply 2):
MEA has costed the government, 500 Million US$ earlier, so it´s basically a way to pay back the old costs.

That's because in 1996, when MEA was taken over, the government absorbed all of the debt MEA had incurred since 1981. It was a decision taken to prevent the national carrier from collapsing which is viewed as an important asset for Lebanon. The difference with the Alitalia story and other government-owned airlines that are bleeding cash however is that MEA is no longer a loss making company, and hasn't been for the past six years.

MEA's current chairman, Mohamad El-Hout, was appointed in 1998 and embarked on a massive restructuring program for the airline. In 2002, MEA finally reported a profit, its first in 20 years and since then, its profits have been growing. In 2002, it was just a $3 million profit, very insignificant. For 2008, the profit is expected to be $70 million. That's a considerable increase in just 6 years, especially with all the trouble Lebanon has been going through. For comparison, in 1997, MEA reported the biggest loss in its history, a loss of $87 million. Even in 2006, when BEY was closed for 34 days because of the war with Israel, MEA managed to report a $39 million profit for that year despite the very heavy losses incurred during the war period.

Keep in mind that despite some political opposition, the decision to begin privatizing MEA was taken this summer, but then the global financial crisis hit and it was put on hold. The plan was to issue an IPO early this year.

This article just highlights what was said earlier about how market conditions are not ripe to begin privatization and Hout's predictions about how they won't be ripe for the next few years.



"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
User currently offlineMEA From Australia, joined Jan 2001, 631 posts, RR: 0
Reply 4, posted (5 years 8 months 2 weeks 3 days 21 hours ago) and read 1778 times:

It would be nice for MEA to come under the AF-KLM fold or some other major player in the industry.

They could assist with aircraft acquisitions, product and service enhancements as well as access to vast marketing networks, etc.


User currently offlineODAFZ From Afghanistan, joined Jul 2004, 357 posts, RR: 5
Reply 5, posted (5 years 8 months 2 weeks 1 day 19 hours ago) and read 1638 times:

Some thing I did not like about the original post is the comparaison about two different things AZ and ME and why you did not compare it to OA , BA, AF SK, SN, which were bailed outdirectly and undirectly by their respective government to name only a few.
Any way, I do have a (bitter) taste of bias.... Hope I am wrong


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