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Ministry of Aviation studies restructuring Egypt Air to minimise its losses

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Egypt Air studies the possibility of a merger to compensate losses of past years

Egypt Air suffered losses of almost seven billion Egyptian pounds (AFP Photo)

Egypt Air suffered losses of almost seven billion Egyptian pounds
(AFP Photo)

Following EgyptAir’s losses of almost EGP 7bn after the 25 January Revolution, Minister of Aviation Abdul Aziz Fadel said that there is currently a study to restructure the airline company and merge with its sister companies to overcome its current financial troubles.

The study will be carried out by highly-qualified experts in economics and aviation, according to Fadel. He indicated that the company is still facing losses and that, along with the ministry’s lead officials, they have been looking for solutions to end the continuing crisis. One such option was including the government as partner in the company’s capital.

Fadel explained that work will begin in a short period of time; however, EgyptAir has not agreed on the final frame for the restructuring or merger.

EgyptAir has suffered great losses since the 25 January Revolution due to the decrease in tourism to Egypt and the enforcement of travel bans by many countries around the world. In 2013 alone, air traffic decreased by 4.8% year-on-year.

Translated from Al-Borsa Newspaper.

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