2007 is certainly shaping to be the one of the most successful years for the carrier as the airline continues to enhance and expand operations. A fitting commemoration for the airline's Silver Anniversary...
- The annual report for 2005-2006 was published internally this month indicating that all 8 holding companies have registered strong profit growth. Though state owned, the airline receives no government financing. Following 9/11 the carrier posted losses of LE260million in 2001/2002 and LE247million in 2002/2003, however restructuring led to a return to profitability and a profit of LE302million was registered in 2003/2004, then LE429million in 2004/2005 and LE485million in 2005/2006. This is expected to increase to LE700million for the current 2006/2007 year. Furthermore the airline's revenue has trebled from LE3billion in 2002 to LE9billion in 2006. Due to the encouraging results the airline has awarded all long term employees a bonus this week for all their hard work and dedication. Note EgyptAir's financial year runs from July to June.
- This summer sees a 21% increase in flights compared to the same period last year, as aircraft utilisation is improved and new aircraft arrive.
- New flights will be launched to Guangzhou, Kuala Lumpur and Lisbon in June.
- The airline will focus on expanding to new markets in the Middle East, Africa and Asia with key destinations in the US and Canada. The following 10 routes have been earmarked for expansion before 2010:
- Warsaw (Poland)
- Prague (Czech Republic)
- Belgrade (Serbia)
- Dar Al Salam (Tanzania)
- Dakar (Senegal)
- Lusaka (Zambia)
- Washington (USA)
- Chicago (USA)
- Toronto (Canada)
- Shanghai (China)
Expansion in the tightly regulated African market will be a key issue for EgyptAir to address at Regional Africa which takes place in Cairo between 27th-29th May.
- Warsaw (Poland)
- The carrier will receive 2 more B737-800s in 2007 which are to be deployed on short and medium haul routes.
- Plans to join Star Alliance are in full swing with the intention of gaining full membership. This week EgyptAir Chairman, Abdel-Hamid, stated that the airline "has achieved considerable progress negotiating with the German carrier (Lufthansa) to become a member of Star Alliance." The carrier already has agreements with several alliance airlines including LH, OS, SQ, LX, TK, TG, SA and TP. Alliance membership will certainly bring significant benefits to both the carrier and the organisation. It should also resolve current issues with AC with regards to MS serving YYZ and give BD access to CAI.
- As a first step towards privatisation, the airline signed an agreement with Goldman Sachs in March for consultation on an IPO for 20% of the EgyptAir Holding Company. The IPO is expected to raise between $US900-1000million.
- Proceeds of the IPO will be used to finance a 12 aircraft order for delivery before 2010. This will include an order for at least 7 A330s or B777s. The 3 A340-200s are expected to leave the fleet with the arrival of new widebodies.
- A new subsidiary specialising in the use of small VIP passenger jets for corporate and personal air travel launches this year. The new 'Smart Aviation Company' will use 3 Cessna Citation jets with a capacity for 10 passengers.
- Plans are in place to upgrade the interiors of the airline's fleet of B777s, including the introduction of lie-flat beds in the premium cabins.
- In February the airline launched a new, albeit basic, website which for the first time allowed for online bookings and coincided with end of the 2 tier fare system the airline had been using.
- Last Monday, on the airline's anniversary, the carrier signed a Memorandum of Understanding (MOU) with the Egyptian National Postal Authority allowing passengers to book their flight tickets at post offices around the country. The deal is the first of its kind in the Arab region and Africa.
- The launch of EgyptAir Express to operate domestic and selected regional services from 01 June 2007. The new subsidiary will receive the first 2 brand new 76-seater Embraer 170s this week, followed by 2 more in July and 2 more in August. The subsidiary has a further 6 Embraers on option that are expected to be converted to firm orders by year end. The initial batch of pilots have already returned from their training in Switzerland.
"There has always been a need for a subsidiary within EgyptAir that focuses its operations on domestic flights more than any other routes," Mohammed Hassan (Chairman of EgyptAir Express) pointed out. He added, it would better serve passengers flying on domestic routes as it would offer them more convenient flying schedules. "The fleet will also absorb high demand on domestic routes that occurs during high seasons such as Christmas and New Year flights to the Red Sea as well as Umrah flights to Saudi Arabia during Ramadan." Launching EgyptAir Express is also essential for the national carrier to partner with the worldwide Star Alliance group, an objective of EgyptAir. "In order to join Star Alliance, carriers have to be predominant in their domestic markets. In EgyptAir's case, that stipulation cannot be met without having a fleet fully dedicated to serving domestic routes," Hassan stated. The initial schedule of the subsidiary is found here. The airline plans to launch flights to Taba (Sinai) and Marsa Alam (Red Sea) in October.
- Charter subsidiary, Air Cairo, who currently operate 3 A320s will receive 2 more A320s this year (June and November). This summer will see the highest number of flights being operated since its launch.
- The new Terminal 3 at Cairo Airport (the carrier's hub) will open and become fully operational in the first quarter of 2008, and the carrier will move all its operations to the brand new and advanced terminal as it initiates its strategy to transform operations to hub and spoke. EgyptAir Chairman, Abdel-Hamid, stated this week, "EgyptAir, as a potential Star Alliance member, will move with alliance members to operate from the new terminal. This will provide passengers and airlines with state-of- the art services and facilities,". Two of the gates at the new terminal will be equipped to handle the A380.
Fleet (as of May 2007):
EgyptAir and Subsidiaries
- 4x B737-500 (including B735 used to operate 'Air Sinai' flights)
- 2x B737-800 ( further 10 on order)
- 5x B777-200ER
- 12x A320-200
- 4x A321-100
- 7x A330-200
- 3x A340-200
- 2x A300-600F
- 2x A300B4-203F
Air Cairo:(60% owned by EgyptAir)
- 3x A320-200 ( further 2 on order)
EgyptAir Express: (100% owned by EgyptAir)
- Embraer 170: 6 on order and 6 on option
Smart Aviation Company: (partial subsidiary of EgyptAir)
- Cessna Citation: 3 on order
Total of 70 destinations
- Egypt-Domestic (10): CAI (hub airport), SSH, HRG, LXR, ASW, ABS, ATZ, ALY, HBE, MUH
- Europe (20): LHR, ORY, FRA, MUC, DUS, SXF, AMS, BRU, GVA, MAD, BCN, LIS (from 02JUN), 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 (7): NRT, KIX, PEK, BKK, BOM, CAN (from 02JUN), KUL (from 02JUN)
- North America (2): JFK, YUL
For the up and coming W07/08 schedule, the airline plans (i.e. yet to be confirmed) to increase flights to the following destinations:
- Tripoli: increases from 9 to 13x weekly services
- Khartoum: increases from 9 to 14x weekly (2x daily) services
- Algiers: increases from 3 to 4x weekly services
- Johannesburg: increases from 5 to 7x weekly (daily) services
- Lagos: increases from 4 to 5x weekly services
- Kano: increases from 2 to 4x weekly services
- Dubai: flights from Cairo increase from 13 to 14x weekly (2x daily) services (other flights from ALY and SSH)
- Damascus: increases from 7 to 10x weekly services
- Brussels: flights from Cairo increase from 2 to 3x weekly services (plus usual LXR service)
- Dusseldorf: increases from 2 to 3x weekly services
- London/Heathrow, Frankfurt and New York will also receive extra flights however this is subject to getting slots at LHR and FRA.
Photo © Spencer Wilmot
Photo © JetPix
KUL SANA WINTEE TAYIBA EGYPTAIR!