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Air attack
Published in Al-Ahram Weekly on 17 - 03 - 2011

Civil aviation is being shaken by growing protests, complaints of corruption and a drop in revenues, reports Amirah Ibrahim
Egypt's aviation industry, for over a decade one of the more advanced sectors of the economy, has come under friendly fire as hundreds of employees in affiliated companies continue demonstrating against their management. The protests come with the release of a long list of accusations levelled against ex-aviation minister Ahmed Shafik who left the post shortly after the 25 January uprising to form a new cabinet as prime minister. Shafik resigned two weeks ago, but his top aide, Ibrahim Manaa, who became aviation minister, is now under attack himself.
"Manaa is one of the old guards of the regime. He will be working against the newborn revolution," commented an air controller who protested in front of the ministry headquarters, a few kilometres from Cairo International Airport.
The air controllers threatened to block air traffic to all flights on Sunday onwards if Manaa does not resign. Early this week, protesters said they had lodged a complaint with the attorney-general against Shafik alleging wasting public money.
The accusations include ordering that the contract to construct Cairo Airport's new terminal building TB3 be given to companies belonging to businessmen Magdi Rasekh and Mahmoud El-Gammal, Hosni Mubarak's in-laws, at inflated prices, reaching LE3.3 billion with loans from the World Bank.
"The establishment of terminal building 3 was first decided in 1995 and all designs were made before the Aviation Ministry was created in 2002. However, the aviation administration decided to manage the project through one of the world's most valued institutions with concern to transparency -- the World Bank which controlled all the process through different phases as one of the conditions to provide the finances," Manaa told a press conference on Tuesday. Manaa was involved in all processes related to airport constructions, being the chairman of airports and the Air Navigation Holding Company since 2002.
The complaint included more than 24 accusations against Shafik and his team, including Manaa and the chairmen of all affiliated companies.
"The annual loses of the new TB3 has hit LE500 million. A new apron tower and a fourth runway have been constructed for LE1,250 billion while the airport has three runways and a control tower, which means a waste of public money," the complaint stated. "A people auto mover is under construction, costing some LE250 million, whereas transit traffic among Cairo International's three terminal buildings does not show necessity to waste the money."
Over two hours, Manaa addressed the media with dozens of facts and figures. "TB3 was opened in mid-2009. The airport in the fiscal year 2008/2009 achieved profits estimated at LE171 million, which was increased in 2009/2010 to LE199 million, an average increase of 15.8 per cent. These figures are documented in the final budgets."
Manaa cited specialised research and studies by air navigation technical expertise which highly recommended constructing a new apron tower 110 metres high while the old tower is 67 metres in height. "This tower allows central control of all runways and taxiways through the extended facilities of the airport." An Egyptian contractor won the LE220 million contract to construct the apron tower which joined the service last year.
"I would appreciate it if those are circulating rumours, and damaging a major industry of the Egyptian economy, to act in a positive way as honest citizens who go after the interests of their beloved country, not to take revenge and settle old scores at any price.
"Honest citizens would take all the proof and documented accusations to legal authorities, not to the media," Manaa shouted as he reviewed the damage to the aviation industry due to the unrest.
"The industry is bleeding. The national carrier's revenues have dropped by LE1.7 billion, taking the net lose of profits to LE650 million. The national carrier is suffering almost 60 per cent in loses while airports have the remaining 40 per cent of loses," Manaa added.
More than 150,000 foreign tourists fled the country during the 18-day uprising that began on 25 January.
According to Hussein Massoud, chairman of EgyptAir Holding Company, the carrier had to cut its operations by 65 per cent, grounding two-thirds of the fleet and even studying the possibility of leasing some of its newest planes, along with crews, to offset projected losses.
"Our income has been reduced by as much as 75 per cent," Massoud told Al-Ahram Weekly. He indicated that his airline was the only Egyptian airline pressed into service, evacuating 80,000 Egyptians from Libya in two weeks onboard 239 flights, and using airports in Tunisia and Libya.
EgyptAir has a 55 per cent market share in Egypt, carrying nine million passengers in 2010. It is working on an ambitious plan to act as Africa's main gate to the world through a strong membership in the world's number one airline cartel, Star Alliance.
Massoud said the carrier would delay the launch of new routes to Toronto Pearson and Washington Dulles that had been planned for this summer. "I don't think we can do it during this summer. I hope they can be added in May 2012."
The unrest also affected aircraft delivery in the short term. "During the crisis we took delivery of a new Boeing 777-300ER," Massoud said. "We are negotiating with Airbus to delay the delivery of A330- 300s -- of which the carrier is supposed to receive four starting this year -- by three or four months."
"The worst for us was day one, when there was a curfew and we had to stop all flights. In general, we believe we will overcome the crisis. Maybe we will recover by the end of the year," Massoud said.
As protesters threatened to close the country's air space, the army intervened on Sunday deploying troops at Cairo International facilities and air navigation centre.
On Tuesday, a clear message to all protesters warned the Armed Forces would strictly apply a new anti-violence law against all attempts to stop work. It appeared to be working as protests surrounding the airport and the ministry were suspended, then eventually stopped.


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