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Two wrongs do not make a right
Published in Al-Ahram Weekly on 11 - 08 - 2011

Amirah Ibrahim looks into the potential of a new domestic route to survive amid an economic recession
The national carrier EgyptAir has launched a new domestic service to Port Said, located at the northern entrance of the Suez Canal. The new service is being operated twice weekly; on Sundays and Wednesdays using the Embraer jet fleet of the domestic airline EgyptAir Express. The new route is operated under an agreement between aviation ministry and the government of Port Said.
Yet, analysts predict that the new route lacks the potential to survive in a time of a political crisis that negatively affects all economical activities, air transport business included. The national carrier EgyptAir had been hit seriously by the crisis which forced it to shrink its expansion plans and negotiate a freeze on delivery of part of its new fleet.
Under the contract, the carrier operates two flights weekly with Embraer ER jets, seating 75 passengers, with the cost covered by the local governorate. The contract's duration is one year and each flight costs between $6-7,000.
Apparently the aim in operating the new route is to allow the opening of the Port Said airport which had been modernised, upgraded and expanded at a cost of LE220 millions with no strong economical opportunities to operate as a profitable facility.
With a collapsed air traffic business since last January, attracting new customers to regional airports is a very difficult matter. Dozens of European airlines suspended operation to Egypt while Arab airlines, the main customers for regional destinations, have cut their operation by more than 60 per cent. Meanwhile, Port Said airport had been scheduled to open by the end of last January, which did not happen due to the unrest.
The former aviation minister who took over only for six months and came under fire as a member of the ousted regime, decided to operate the airport though it does not receive any flights at all. This explains why the national carrier was pushed to operate a new service at a cost price, but does not justify the local governorate of Port Said paying the cost to fly empty planes.


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