EgyptAir - National Carrier
EgyptAir ‘Diamond’ Jubilee
EgyptAir celebrates its 75th Anniversary this year. The airline was established on the 7th May 1932 and became the 7th carrier in the world.
Currently stands at 40 aircraft:
- B737-500: 3
- B737-800: 2
- B777-200ER: 5
- A320-200: 12
- A321-100: 4
- A330-200: 7
- A340-200: 3
- A300-600F: 2
- A300B4-203F: 2
Aircraft Deliveries: 2 B738s will arrive this year, 2 in 2008 and the last 6 in 2009.
Total of 66 destinations:
- Egypt-Domestic (9): CAI, SSH, HRG, LXR, ASW, ABS, ATZ, ALY, MUH
- Europe (19): LHR, ORY, FRA, MUC, DUS, SXF, AMS, BRU, GVA, MAD, BCN, FCO, MXP, BUD, VIE, DME, ATH, IST, LCA
- Middle East (17): JED, RUH, DMM, MED, KWI, DOH, BAH, DXB, AUH, SHJ, ANN, MCT, SAH, DAM, ALP, BEY, AMM
- Africa (14): TIP, BEN, TUN, ALG, CMN, LOS, ACC, KAN, KRT, ADD, NBO, ASM, EBB, JNB
- Asia (5): NRT, KIX, PEK, BKK, BOM
- North America (2): JFK, YUL
The wholly-owned subsidiary will launch services with the arrival of the first Embraer ERJ-170 in April. The aircraft will be deployed on domestic services which in 2005 accounted for 21% of the airline’s total traffic as well as selected Mediterranean Basin routes including Lebanon, Syria, Saudi Arabia, Libya, Greece and Cyprus. EgyptAir Express Chairman, Mohamed Hassan, states domestic air fares will go down by 25% with the launch of EgyptAir Holding’s 9th sister company.
Though ERJ-170 flights have yet to be loaded into the schedules, the Operations Manager of Marsa Alam Airport (RMF) informed me that EgyptAir have expressed their intention to serve the airport with ‘regional jets’ from April 2007. In fact they’ve started preliminary preparations by introducing a line maintenance facility at the airport, and selling the service to other carriers who do not have this facility. At the moment FastLink Egypt operate a twice weekly Saab 340 CAI-RMF-CAI service.
Eng Atef stated this month ‘As for the Embraer aircraft, which will be used for the EgyptAir Express fleet, the first six aircraft are scheduled to be delivered between April and June 2007, then we will move forward with our options for six more aircraft’. However ACAS shows the following delivery schedule for the 6 firm ERJ-170s:
- April07 (1)
- August07 (1)
- January08 (1)
- May08 (1)
- October08 (1)
- November08 (1)
With a fleet of 4 A300Fs and a growing list of dedicated cargo destinations, EgyptAir Cargo, continue to expand in the market. The most recent news was a new cooperation agreement between EgyptAir Cargo and Royal Logistics Services (RLS) who are a part of the Egypt-based Amiral Group. The memorandum of understanding signed entailed RLS overseeing the management and running of a logistics centre to gather and re-distribute goods between Sokhna Port and Cairo Airport. This project is seen as the first step in building ‘Cargo City’ at CAI which is supported by both the Minister of Civil Aviation and Chairman of EgyptAir Holding Company.
Plans to part-privatise the carrier by setting up an IPO for 20% of the company in early 2007 have been put on hold and not likely to be made soon as confirmed by Minister of Civil Aviation, Ahmed Shafiq. He explained to the Shura Council's Industry and Energy Committee that despite operating profitably for 3 years, the airline was yet to achieve a growth rate strong enough to generate interest in its stock. "Just because we use the term 'national airline’ does not mean the government is against the company's privatization," Shafiq said. "I am personally convinced of the importance of offering a portion of the company for private sector partnership." He added that he would support offering ‘as much as 50%’ if such a move was studied properly.
EgyptAir Financial Results
According to EgyptAir CEO, Atef Abel Hamid, 2005/2006 results, yet to be published, will be even better with profits coming from all divisions. In 2003/2004 EgyptAir recorded £EGP303 million profit and in 2004/2005 it rose to £EGP443 million. Note: EgyptAir’s financial year runs from July 1st to June 30th.
In addition, "Indications show that Egypt Air has made s surplus in its 2006 budget," said Eng. Atef. The net surplus (profit) increased by 10 percent, said Atef, pointing out that such an increase reflected the continued progress in the company's performance year in and year out.
In addition the shareholders’ rights have increased by more than 60% since the establishment of the holding company (2004) and investments have reached £EGP8 billion.
EgyptAir Future Plans
As to the future Eng Atef states “EgyptAir will focus on the development of its network, building Cairo into a major crossroads linking Africa with Europe and the Middle and Far East, and expanding the fleet.”
Expansion of the network in Africa is still mired in the inactivity of many of the countries that signed up to the Yamoussoukro Decision. “It is a real problem, and I think that a region by region approach has more chance of succeeding, it is for this reason that we have come up with a new idea. On our initiative, the African Airlines Association is proposing to establish a Club of the Ready and Willing, interested airlines which are capable of convincing their governments and civil aviation authorities to open the sky to free movement of people and good. I believe it will motivate those lagging behind.” Currently the airline has services to 14 African destinations (excluding Egyptian domestic).
EgyptAir Hajj 06/07 Programme
To complete the programme successfully and to minimise the impact to the normal schedule the airline wet leased 2 additional aircraft:
- Monarch Airlines A300-600R G-MAJS
The aircraft operated with EgyptAir between 16/12/06 and 14/01/07. Monarch crew involved in the lease agreement included pilots and 3 senior cabin crew (EgyptAir cabin crew covered the rest). Both airlines were happy with the arrangement (2nd year in a row).
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Photo © Wim Callaert - Brussels Aviation Photography
- Bravo Airlines B767-200ER EC-JOZ
The aircraft did not actually fly Hajj services but instead operated on EgyptAir's normal scheduled services. Here is a snapshot of where EC-JOZ was operated:
- CAI-IST-CAI (MS737/738) on 02/01/07
- CAI-TIP-CAI (MS831/832) on 02/01/07
- CAI-AMM-CAI (MS719/720) on 03/01/07
- CAI-DAM-CAI (MS721/722) on 03/01/07
- CAI-IST-CAI (MS737/738) on 04/01/07
- CAI-DAM-CAI (MS721/722) on 04/01/07
- CAI-BCN-CAI (MS767/768) on 05/01/07 (see photo below)
- CAI-DMM-CAI (MS681/682) on 06/01/07
- CAI-DOH-CAI (MS8475/8476) on 06/01/07
- CAI-ATH-CAI (MS747/748) on 07/01/07
- CAI-FCO-CAI (MS791/792) on 08/01/07
- CAI-BRU-CAI (MS725/726) on 09/01/07
- CAI-FRA-CAI (MS785/786) on 10/01/07
- CAI-FRA-CAI (MS785/786) on 11/01/07
- CAI-BCN-CAI (MS767/768) on 12/01/07
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Photo © Javier Gonzalez
- CAI-IST-CAI (MS737/738) on 02/01/07
The 2006/2007 Hajj flight programme ended on 18/01/07 with the following flights (all ex-JED):
- MS664 arrived into CAI at 03:50 (B777)
- MS674 arrived into CAI at 05:50 (A342)
- MS666 arrived into CAI at 07:15 (A332)
- MS646 arrived into CAI at 09:15 (A342)
- MS662 arrived into CAI at 12:40 (A332)
- MS676 arrived into CAI at 15:25 (B777)
- MS672 arrived into CAI at 19:40 (B777)
- MS7207 arrived into LXR at 23:05 (A332)
EgyptAir and CAI
As for the development of Cairo International Airport as a regional hub, the carrier is working with the airport to activate this strategy, and Eng Atef has been appointed by the Ministry of Transport as chairman of a committee, together with the chairman of the airport holding company, to move this project forward.
In order for the airline to achieve a successful operation, the airline would have to develop their hub base and join a global alliance. The former has been addressed with the upgrade of work of Terminal 1 and 2 at CAI and the opening of brand new Terminal 3 in 2008 which will more than double the airport’s capacity.
EgyptAir and Star Alliance
On alliances Eng Atef said, “We have approached the Star Alliance and have had a positive response,” says Eng. Atef. “I believe we will succeed in this endeavour.” EgyptAir is working closely with Lufthansa to join the alliance and recently signed an agreement with Lufthansa Systems to implement the Sirax revenue accounting system at EgyptAir over the next seven months
EgyptAir and e-ticketing
EgyptAir now issue e-tickets on all domestic routes (first route was CAI-LXR-CAI and was issued on 05/12/2006) and to some international destinations as well. During its first week of operation 2,000 e-tickets were issued. Remaining international routes should be e-ticket enabled by the end of March. Interline capabilities should be in place by the end of this month.
EgyptAir officials say the new system will save $1 million annually, which was the cost of issuing ordinary tickets.
Last, but not least, the issue of upgrading the airline’s website. Here is what Eng Atef said last week; ‘The newly designed EgyptAir website will soon be launched, and will be equipped to handle online reservations for all our services and credit card payments.’
EgyptAir Preliminary Summer 2007 Changes
A comprehensive list of Summer 2007 changes is available in the next post (Reply 1).
Other Egyptian Airlines
- AMC Airlines
Fleet: 2x B738s, 1x B732, 2x MD-88
Orders: at least 2 more B738s to be leased from GECAS
- Air Cairo (60% owned by EgyptAir and the remainder held by National Bank of Egypt and Banque de Cairo)
Fleet: 3x A320s
Orders: 2x A320s (deliveries JUL07 and NOV07)
- Air Sinai (wholly owned subsidiary of EgyptAir)
Fleet: 1x B735
- Lotus Air
Fleet: 4x A320s
Fleet: 5x Dash-7s, 5x Dash-8s, large helicopter fleet
Orders: Options on 2x Dash-8s
- Luxor Air
Fleet: 1x MD-83
- Air Memphis
Fleet: 1x leased MD-83, 1x DC-9
They returned their 2 A320s (SU-PBD c/n:26 and SU-PBE c/n:24) to the lessor recently.
Fleet: 1x ATR72
- EuroMediterranean Airlines
A subsidiary of 'Air Italy'. Began operations in January07 with a B757 based in Sharm El Sheikh (SSH). Here is a photo: http://www.flugzeugbilder.de/show.php?id=576334
- Koral Blue
Planned launch in March 2007 with 2 A320s
In a move to ensure the utmost safety all carriers registered in Egypt had to incorporate the IATA Operational Safety Audit (IOSA) into their safety oversight programmes by the end of 2006. All new applicants for an Air Operating Certificate (AOC) in Egypt must successfully complete an IOSA Registration prior to commencing operation. Existing airlines on the Egyptian registry will also be required to undergo an IOSA re-audit every two years.
Cairo International Airport (CAI)
In 2006 CAI handled a record 10,778,097 passengers (up 5.5% from 2005’s 10,218,369). 8,849,027 (82.1%) were international and 1,929,070 (17.9%) were domestic passengers. In total the airport handled 106,000 civilian flights (6.9% higher than 2005’s 99,204). A very good year considering the problems in neighbouring countries.
The opening of Cairo International Airport’s new Terminal 3 has been delayed again till February 2008. Cairo Airport Company has requested TAV (the contractor) to build a new prier with the capabilities to handle 2 A380 aircraft. In addition 27 airlines are expected to share the terminal with EgyptAir.
In 2006 Malaysian Airlines (2x weekly B772) and Air Malta (2x weekly A319) terminated their CAI flights but the airport gained Aeagan Airlines (daily B733) and Afriqiyah Airways (3x weekly A320)
Changes to international airline services to CAI:
(usual summer increases not included)
- KLM-Royal Dutch Airlines:
Currently a daily AMS-CAI service (5x weekly B777 + 2x weekly MD-11), but increases to 10x weekly (7x weekly B777 + 3x weekly B744M) this summer. This has yet to be loaded into the schedules but is confirmed. I’d like to thank HB- IWC for this information.
- Air France:
S07 sees the upgrade of 4 of their 10x weekly CDG-CAI-CDG A332/A343 services to the B772ER, offering First Class in the Egyptian market again
- Malev Hungarian Airlines:
Increases BUD-CAI services from 3 to 4x weekly
ZRH-CAI is currently 5x A343 + 2x weekly A32X, but becomes daily A343 from 09JUL07
- Aerosvit Airlines:
Increases from 1x weekly KBP-CAI B735 flight to 2x weekly B734 flights
- Czech Airlines:
Upgrade of the 3x weekly PRG-CAI flights from B734 to A320
- Korean Air:
Upgrade of the 3x weekly ICN-DXB-CAI service from a 2-class to a 3-class A333 on 22FEB07. Then from 02JUL07 the A333 is replaced with a 3-class B772
- EL AL
LY's decision to suspend CAI services (as announced in Nov06) was reversed in late December and the airline continues to operate their twice weekly TLV-CAI B73G/B738 services
- Air Sinai
On 25/12/06 4D increased CAI-TLV flights from 2 to 3x weekly with a new Monday service. From 25/03/07 the service increases to 4x weekly B735 flights. In 2006 4D had an average loadfactor of 77.04% on the route. I should add that as soon as LY announced the ‘termination’ of their service 4D’s flights were made available on the Amadeus GDS (previously the flights could only booked directly with EgyptAir)
Alexandria- Borg Al Arab (HBE)
4 consortiums have been short-listed by the Egyptian Holding Company for Airports and Air Navigation for the construction of Alexandria’s Borg Al Arab Airport new terminal. The companies are:
- Local Arabco with Japan’s Kajima
- Japan’s Taisei with Turkey’s TAV
- Athens-based Consolidated Contractors Intenrational Company with the US’s Morganti Group.
- Bexis with local Orascom Construction Industries.
The project will cost $75 million and entails the construction of a new terminal with a capacity to handle 1 million passengers and 4,000 tonnes of cargo a year. The contracted should be awarded by April 2007 and work to be completed by late 2008.
Sharm El Sheikh International Airport (SSH)
Sharm El Sheikh’s new terminal opened for ‘experimental operations’ in January 2007 (nearly 7 months behind schedule-missing two agreed deadlines) however it will officially open in March.
Hurghada International Airport (HRG)
Construction on a new $75 million terminal should begin later this year to increase airport capacity from 4.5 to 8 million passengers per year.
Miscellaneous Airport News
- Minister of Civil Aviation, Ahmed Shafik, asserted that the privatisation of Egyptian airports was ‘beyond doubt’ but with the criteria and regulations that would maintain national security. However, some airports will not be subject to privatisation, primarily Cairo International Airport. Shafiq added that the state was to hold 51% of the airports to be privatised, while selling 49% to investors.
- On January 1st 2007 the authorities raised airport taxes at all Egyptian airports. Passengers on domestic flights now pay $3 in airport tax per ticket (up from $1), while passengers on international flights will pay $15 per ticket (up from $3). The increased revenues will go to improvements in airport services, Ibrahim Mannaa, Chairman of Egypt's Holding Company for Airports and Air Navigation said.
- Head of the Ministry of Civil Aviation’s planning department, Mohamed Tabal, revealed plans to allocate £EGP50 million to improve security at all Egyptian airports in line with the most advanced technologies. Another project will finish covering all of Egypt’s airspace with navigational radar; some parts of south-western Egypt currently lack coverage.