Agriculture Minister discusses boosting agricultural cooperation with Romania, Moldova    Egypt's PM orders 60,000 new homes for Alexandria's unsafe buildings    Crystal Martin to build large-scale textile, apparel factory in Egypt    Egypt urges EU support for Gaza ceasefire, reconstruction at Brussels talks    Escalation in Gaza as Israeli airstrikes intensify, ceasefire talks stagnate    Egypt to launch EGTAP.com online platform to train tourism workforce: minister    Singapore's economy grows in Q2 '25    Gold prices dip slightly on Monday trading    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    EU prepared to retaliate with €21b tariff package – Italy's FM    Health Ministry denies claims of meningitis-related deaths among siblings    Egypt's Health Min. discusses drug localisation with Sandoz    Egypt, Mexico discuss environmental cooperation, combating desertification    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Egypt's EDA, Haleon discuss local market support    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger    Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Flirting with privatised air?
Published in Al-Ahram Weekly on 09 - 09 - 2004

Now that foreign investors will have the right to buy shares in an EgyptAir affiliate, will the national carrier itself soon be privatised? Amira Ibrahim investigates
EgyptAir is in the news again. This week, Aviation Minister Ahmed Shafiq managed to obtain the cabinet's approval to sell 40 per cent of EgyptAir's in-flight services company, one of the national carrier's seven affiliates, to a foreign investor. The decree stipulated an increase in the company's capital by $6 million, or the equivalent of 40 per cent of the company's shares.
Hassan Musharafa, the chairman of EgyptAir's in-flight services company, said his firm fully controls the in-flight services of all of EgyptAir's international and domestic flights. The company also owns and runs Cairo Airport's transit hotel, as well as the coffee shops in Egypt's main airports.
Why would the national carrier sell off such a large chunk of one of its more successful business? According to Musharafa, everybody stands to gain. A partnership with a foreign investor, he said, guarantees three things -- additional funding, international marketing and improved service quality. "Partnering with a big international name would encourage the many regional and Arab airlines that are currently reluctant to buy our services," he said.
Shafiq also defended the move during a Sunday press conference. "Selling public companies is not a mistake. All governments do it. We are not ashamed of saying that, as long as it works for people's benefit."
Shafiq insisted that, "EgyptAir is as important to Egypt as the Suez Canal. Both will never be sold under any circumstances. We may study the selling of some airports," the minister said with a smile, "but not the national carrier." Many of Egypt's 20 airports are not strategically important, and can hence be offered to foreign investors, he said.
Musharafa was optimistic about the potential success of the in-flight services sell-off, since the expected improvement in marketing would enable the company "to seize a considerable share of the regional and international markets". He also said that "none of the 1,800 staff members would be affected by the change in management, [since] with 60 per cent of the shares in our possession, we would [still] have the upper hand in controlling the business."
The national carrier became a holding company two years ago, with its main sectors and activities divided between seven affiliated companies, each with separate management, but all controlled by the mother holding company.
EgyptAir Holding Company Chairman Atef Abdel-Hamid said it was "time to develop the in-flight service sector. The fact is that the company's revenues have increased. Realistically, however, that has been a result of its selling its services to its sister airline companies at higher prices."
Other outside customers, however, have been lost "due to the poor quality services it offers", Abdel-Hamid said.
The move is part of an ongoing process of overhauling the national carrier. Over the past two years, the carrier's management has changed hands three times. An American consultant company was also hired to re-organise the airline's international network. The result was the termination of some 14 international routes that were only servicing about 0.5 per cent of passenger movement.
An already existing partnership with the Lufthansa Group in the field of in-flight services, meanwhile, ended up with EgyptAir losing "20 per cent of our business", Musharafa said.
Lessons from that partnership would be carefully examined so that the new deal would work out better for EgyptAir.


Clic here to read the story from its source.