The Egyptian cabinet has authorized plans to transform state-owned EgyptAir into a six-subsidiary holding company. The proposal will be presented to Egyptian President Hosni Mubarak for approval, confirmed the Ministry of Civil Aviation.
The transformation is expected to take place gradually. The six new entities will cover airlines, air services, ground services, maintenance, air cargo and tourism and duty free shops.
EgyptAir, reported a 7.3 percent profit decrease from 119.8 million Egyptian pounds ($31.5 million) in fiscal year 2000 to EP 111 million ($24 million) in the fiscal year of 2001. The airline cut its operations by 15 percent following the airborne suicide attacks in the United States.
The airline also announced it would not go ahead with the purchase of two Boeing 777s, which were to have been delivered in September. The company had taken out a loan of $160 million to buy the two aircraft — (menareport.com)
© 2002 Mena Report (www.menareport.com)
