EGYPT. The head of Egypt’s national carrier, EgyptAir, was replaced on Sunday, just a year after being given the task of overhauling the loss-making national airline.
Last year, the Egyptian government approved plans to transform the airline into a holding company comprising six subsidiaries, each charged with handling a different aspect of the carrier’s operations, including air and ground services, maintenance, air cargo and tourism and duty free shops.
The announcement was made on the first anniversary of the formerly state-owned EgyptAir’s transformation into a holding company. Ahmed al-Nadi was replaced by a former pilot Sherif Galal, according to Atef Abdel-Hamid, the head of the holding company that runs EgyptAir.
Local report said it was unclear why al-Nadi was replaced. The airline’s restructure has been seen as a way to improve its profitability and efficiency, as well as creating a platform for its possible long-term privatization.
Abdel-Hamid said EgyptAir lost more than US$300 million in 2001-2002. The loss was compounded recently by the war in Iraq and SARS, with some routes having zero bookings.
A cost-cutting programme has been devised, which includes restructuring the company’s fleet. A deal to buy Airbus A318s and A340-600s has been cancelled. EgyptAir will also take a controlling 40% share in a new private airline, AirCairo, that will replace the bankrupt Shorouk airline. The airline is expected to concentrate on charter flights and start operations in September.
