By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    IMF reaches staff-level deal with Somalia
    IMF reaches staff-level deal with Somalia
    March 21, 2023
    HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson
    HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson
    March 21, 2023
    Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
    Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs
    March 21, 2023
    SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
    SCZONE discusses cooperation with American-Hellenic Chamber of Commerce
    March 21, 2023
    EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m
    EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m
    March 21, 2023
  • Politics
    PoliticsShow More
    Shoukry confirms Egypt's full support to COP28 in UAE
    Shoukry confirms Egypt’s full support to COP28 in UAE
    March 21, 2023
    Egypt’s GAH, WHO discuss cooperation in health sector
    Egypt’s GAH, WHO discuss cooperation in health sector
    March 21, 2023
    Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
    Egypt, Turkey are not competitors in Libya: FM Cavusoglu 
    March 21, 2023
    Chinese President Xi Jinping said on Tuesday that China is ready to expand cooperation with Russia during his meeting with Russian Prime Minister Mikhail Mishustin.
    Xi says China to expand cooperation with Russia in trade, investment, supply chain, mega projects, energy, hi-tech
    March 21, 2023
    Egypt’s Irrigation Minister heads to New York for UN water meeting 
    Egypt’s Irrigation Minister heads to New York for UN water meeting 
    March 21, 2023
  • Interviews
    InterviewsShow More
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    December 27, 2022
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Coronavirus outbreak requires TSFE intervention to rescue private airlines: ex-official
Share
Notification
Latest News
IMF reaches staff-level deal with Somalia
IMF reaches staff-level deal with Somalia
Business
HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson
HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson
Business
Shoukry confirms Egypt's full support to COP28 in UAE
Shoukry confirms Egypt’s full support to COP28 in UAE
Politics Egypt
Egypt’s GAH, WHO discuss cooperation in health sector
Egypt’s GAH, WHO discuss cooperation in health sector
Politics Egypt
American University in Cairo (AUC) launches Excellence Scholarship Program to support outstanding students
AUC launches Excellence Scholarship Program to support outstanding students
Society in depth
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Coronavirus outbreak requires TSFE intervention to rescue private airlines: ex-official
Business

Coronavirus outbreak requires TSFE intervention to rescue private airlines: ex-official

Abdel Razek Al-Shuwekhi
Last updated: 2020/04/08 at 3:11 AM
By Abdel Razek Al-Shuwekhi 4 Min Read
Share
SHARE

The Egyptian private aviation sector risks losing its companies, unless the state intervenes to support it through unconventional solutions, said pilot Hassan Aziz, former president of the Private Aviation Association (under establishment).

Aziz said that The Sovereign Fund of Egypt (TSFE) should buy stakes in private airlines or acquire them in full and merge them in order to save the industry.

In an interview with Daily News Egypt, Aziz said the total investments in private aviation ranged between $350-400m.

Aziz explained that the TSFE intervention in private aviation activity will result in separating the administration from ownership. Accordingly, management will become more efficient compared to the current situation of many existing companies.

Former Minister of Tourism Hisham Zaazou had assigned a team from the ministry to study the participation in establishing or purchasing a private airline. The move would have been conducted in partnership with the National Investment Bank, the National Bank of Egypt and Banque Misr. Studies on the project, however, stopped with the crash of the Russian Metrojet Flight 9268 in October 2015.

Aziz had taken part in studies on establishing an aviation entity to support the tourism sector.

“The history of the aviation sector around the world will be in the form of the era before and the era after the coronavirus, amid the long suspension of flights between countries,” he stressed.

He added that the coming period will witness a major change in the International Air Transport Association’s work, as new inexpensive reservation systems would replace the current one in which the association’s share is $8 per ticket.

Airlines transfer about 98% of tourist traffic coming to Egypt annually, particularly to resort areas in the Red Sea and South Sinai, as well as to southern Egypt in Luxor and Aswan.

There are currently 14 locally-owned airlines operating in Egypt, of which only about 4 own their fleet. The rest of the planes are chartered according to the operating leasing system from European, Emirati or American companies, according to Aziz.

The airlines submitted a memorandum to Minister of Aviation Mohamed Manar Ennaba, asking for his support in the face of challenges associated with the coronavirus.

Airlines demand to settle their dues with government institutions in a way that secures them some liquidity to meet their financial obligations with their employees.

The memorandum includes a request to provide tax and customs exemption for a period of two years, which are necessary to restore the activity to its normal position.

Aziz expects some companies that do not have financial solvency to absorb the market shocks to exit the market.

He explains that some companies have the ability to negotiate with the charter companies to postpone the rents, or for some companies to request the postponement on instalment payments due to the force majeure.

The average number of employees in an airline ranges between at least 350 to 400 employees, according to Aziz, adding that layoffs are the biggest danger facing companies now.

He says that some companies paid 25% of wages and others paid 50%, while others paid 100%. But the companies’ ability to bear these expenses varies from one to another.

“Labour in the sector is highly efficient and scarce, especially for pilots, where the wage of a pilot in Egypt ranges between $8,000-10,000, while the co-pilot receives $4,000. This is the highest in the Eastern and Western Europe, but lower than the wages in the Arabian Gulf,” he said

You Might Also Like

IMF reaches staff-level deal with Somalia

HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson

Cooperation between MSMEDA, JICA to boost competitiveness of MSMEs

SCZONE discusses cooperation with American-Hellenic Chamber of Commerce

EFG Hermes concludes valU’s 4th issuance in a securitized bond worth EGP 856.5m

TAGGED: airlines, coronavirus, TSFE
Share this Article
Facebook Twitter Email Print
Previous Article Agricultural sector currently safe from Covid-19 impacts: EABA
Next Article Egypt wages uphill battle against coronavirus
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

IMF reaches staff-level deal with Somalia
IMF reaches staff-level deal with Somalia
Business
HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson
HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson
Business
Shoukry confirms Egypt's full support to COP28 in UAE
Shoukry confirms Egypt’s full support to COP28 in UAE
Politics Egypt
Egypt’s GAH, WHO discuss cooperation in health sector
Egypt’s GAH, WHO discuss cooperation in health sector
Politics Egypt
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?