The Ministry of Civil Aviation is studying whether to issue EgyptAir Holding on the Egyptian Stock Exchange (EGX) as a solution to overcome funding obstacles.
Minister of Civil Aviation Hossam Kamal said the issuance will be a solution to overcome the company’s losses and prepare structural and economic reforms at EgyptAir. Kamal said the airline’s workers cannot be laid off.
The airline’s losses reached EGP 2.3bn during the last fiscal year (FY) 2013-2014, according to Kamal.
The ministry is targeting zero losses during FY 2014-2015 with a transition to profit in the next fiscal year.
EgyptAir currently has 81 planes, with the ministry aiming to increase this number to 127 by 2025. Kamal declined to disclose the cost of buying 23 planes, saying only that “purchases will be financed from the company’s revenue after the transition to profit”.
The new Airport City project is due to be located close to Cairo International Airport and will be presented by the ministry on the third and final day of the Economic Summit on Sunday.
“The first phase of the project will be built on an area of 3m sqm, to attract investments worth EGP 20bn, and the total area of the project is 10m sqm,” the minister said.
Kamal added that the ministry received offers from Emirati, Chinese and Indian companies regarding the Airport City development, but that the ministry is studying these offers.
The Ministry of Civil Aviation aims to develop Egyptian airports by the end of this year at a cost of EGP 1.4bn, according to the minister.