EgyptAir Chairman Mohammad Rayan announced at a recent press conference that the airline intended to purchase 16 new aircrafts, valued at $800 million, in the near future. Funds for the 14 Airbuses and two Boeing 777 jets would be paid off by the company within a decade, Rayan stated.
Earlier this year, Minister of Transportation Ibrahim Al-Damairy maintained that 1.3 billion Egyptian pounds ($304.9 million) would be invested in EgyptAir over the year to renew its fleet by acquiring new aircrafts. This amount represents the largest portion of funds allotted within the transport sector.
EgytAir is currently awaiting word of a pending $180 million loan from several national and international financial institutions to help fund the upgrade. The Arab Banking Corporation of Egypt, in association with the Off America Bank and the French Societe Generale Bank, are reportedly considering awarding a $150 million loan to airline, according to KsaToday daily.
The company’s fleet includes a Boeing 707, acquired in 1961, a Boeing 767-300, plus 13 other Boeing jets in the 737, 747 and 777 classes, as well as 25 Airbus jets. The airline operates more than 400 flights weekly to various national and international destinations. The company lost one Boeing jet last year when it crashed off the eastern coast of the United States en route to Egypt.
EgyptAir expects revenues to reach EP five billion in 2002, compared to EP 4.7 billion in this year’s budget. Rayan noted that EgyptAir played a crucial role in Egypt’s economy, contributing around $190 million to the national economy on a yearly basis, as well as providing employment. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
