The national carrier is resuming operation to Japan after a suspension of flights for a year. Amirah Ibrahim looks into the carrier plans to balance despite heavy losses The national carrier EgyptAir has revealed plans to resume operation to Japan after a year of stopping flights to the land of the rising sun. According to Ayman Nasr, chairman of the international airlines, the carrier suspended its flights to Japan due to the travel ban imposed by the Japanese government to its citizens for fear of the unrest that followed the 25 January revolution. "The Japanese market is one of our vital markets in the Far East," commented Nasr. "We have been working closely with Japanese travel agents, the Tourism Ministry and Egyptian tourism companies to resume the operation as quick as we could." According to Nasr, the airline will resume the Tokyo route on 15 April, operating two flights weekly on Sundays and Tuesdays. The airline will operate its new B777-300 which seats 346 passengers on the Japanese route. "We are keen to provide our best services and ensure a luxurious trip to our clients in Japan. Operating the new B777-300 will meet high satisfaction of such a long route travelers," Nasr added. In May, the airlines along with Japanese travel agents are set to celebrate the 50th anniversary of serving the Japanese market. Governments of Japan and Egypt signed a bilateral air travel agreement on 10 May 1962. Ever since, the national carrier has been serving Japan with indirect flights later developed in direct flights to more than one point in Japan. The airlines used to operate a daily to Tokyo, and a daily flight to Osaka but a year ago it had to shrink the operation and then suspend it. Official figures by Egyptian tourism authority show that Japanese tourists exceeded the figure of ten millions in 2010. Nasr explained that the airline was highly concerned to ensure an economic visibility to operate the route. "With the help of our partners in the Japanese market, we managed to achieve high load factors that keep risks to the minimum, particularly in the light of losses we have hit over the past year." The carrier has released a financial report for the fiscal year 2010/2011 which showed the whole losses for the group exceeding LE2 billion. The airline's share of losses exceeded 70 per cent of the group. The carrier consists of ten affiliated companies serving air travel business and others. Three airlines; one for international routes, one for domestic and the third for cargo, represents the core business of the state owned carrier. Technical support and maintenance, ground services, inflight services, represent the core of investing business while the company makes profits out of selling services to non sister airlines . The airline achieved a surplus of LE82.3 million. This is less than the financial planning for fiscal year 2010/2011 by LE268.4 million. The General Assembly of EgyptAir held its annual meeting to discuss the financial report with Aviation Minister Hussein Massoud, airline chairman captain Hossam Kamal, representatives from the Central Accounting Authority and airline board members. "We are talking about 76.5 per cent decrease of our targeted record," commented Kamal. "This is also a decrease by LE259.2 million comparing to the year before which is 75.9 per cent lesser than last year's surplus," he added. Kamal indicated the tough circumstances that affected the carrier's business among all Egyptian economy components. "We suffered a drop of traffic due to a drastic deterioration of air travel through the country. In addition, oil prices kept swinging over past year adding to our losses as it represents 31 per cent of the total loss." Kamal reviewed the investment projects of the mother group, consisting of the holding company and affiliated companies. Out of accredited LE3560.1 million for the projects during 2010/2011, the group spent LE2921.7 million which is 82.1 per cent of the plan. Kamal also reviewed a report showing the development of wages and labour between 2006/2007 and 2010/2011, indicating an increase by 125 per cent. "In 2010/2011 wages exceeded LE2,028 million comparing to LE1,002 million in 2006/2007." In his turn, Massoud expressed optimism that the financial situation would improve in the near future due to a series of procedures adopted to stop the bleeding of losses.
