Ready for take-off
EgyptAir's management is embarking on a massive programme of overhaul and renovation. The airline's chairman, Ahmed El-Nadi spoke with Amira Ibrahim
In an interview with Al-Ahram Weekly, EgyptAir Chairman Ahmed El-Nadi has revealed a comprehensive plan intended to develop the airline and increase its profitability. In a related move, EgyptAir began negotiations with Brazilian and Canadian aircraft manufacturers last week in order to modernise its fleet.
Traditionally, EgyptAir has relied on only two manufacturers: Airbus Industrie, a European consortium, and Boeing Corporation of the United States. It seems that this will no longer be the case. Last week, EgyptAir began negotiations with two new manufacturers to provide its fleet with short-range aircraft for domestic routes.
The move has been encouraged by Aviation Minister Ahmed Shafiq who, since taking office last year, has conducted extensive reform of the aviation sector.
El-Nadi said that EgyptAir is studying two new offers by Bombardier Aerospace of Canada, and Embraer of Brazil.
"We are interested in 50-seat airliners, which we believe are more convenient for the changes we envisage for the fleet," said El-Nadi. "EgyptAir's fleet has always consisted of long and medium-range planes, which are ill-suited to the current nature of the local market. Meanwhile, feasibility studies have shown that the operating costs of long and medium-range aircraft have not helped to expand the Egyptian market as intended," he added.
EgyptAir's fleet consists of two cargo aircraft, 12 Boeing's (777s, 747s and 737s) and 22 Airbus aircraft (A300- 600Rs, A320s and A340s).
According to El-Nadi, the operation of 50-seat aircraft will boost flight frequency, which in turn will attract more passengers.
Two weeks ago, Minister Shafiq flew on board an Embraer ERJ 145 turbofan jetliner from Cairo to Luxor to examine its performance. Another demonstration flight, this time by a Bombardier CRJ 200, is slated for next month.
"We are also thinking about leasing a number of planes for a few months, during which we will make a final decision on what to purchase," El-Nadi said. The list price for an Embraer ERJ 145 is $19 million, although prices are still under negotiation, El-Nadi added.
Short-range 50-seaters are already in operation in Egypt with private companies like Petroleum Air Services (PAS).
EgyptAir has leased six turboprop planes from France and two from a private Egyptian company to test in the domestic market. "The experiment proved to be a success during the Fitr feast vacations last November, with the operation of flights every two hours, between Luxor, Sharm El-Sheikh, Hurgada and Aswan," El-Nadi said.
He also stated that the domestic network is subject to modification.
Three years ago, EgyptAir ordered two new Boeing 777-200s, two Airbus A340- 600s and five Airbus A318-100s, worth $691.3 million. However, after the reorganisation of the company last May, policies and plans changed and a re- evaluation process of international and domestic routes led to a change in fleet selection.
"Due to delivery delays by Airbus, the A318 deal has been replaced by A320s, which are expected to be delivered by the end of this year. A340s will be replaced by A330s, which are better suited to targeted changes in the international network," said El-Nadi.
International routes are being re- evaluated. Five months ago, EgyptAir's Sydney route was cancelled owing to losses that exceeded LE64 million a year. The airline has also added a non- stop Tokyo flight.
"At the same time, we are working closely with some European airlines to increase the efficiency of our international network. Two months ago, we signed a limited alliance agreement with an [Austrian] airline, which will allow EgyptAir to transport passengers from African cities to Vienna via Cairo," he said.
EgyptAir is also studying the possibility of modifying its Montreal route, which stops in New York, to avoid tough security procedures which disturb passengers. "We are thinking of flying directly to Montreal and then on to New York," El-Nadi explained.
In order to respond to developments in the international aviation industry, EgyptAir has also contacted a number of international consultants to evaluate its activities and plans, El-Nadi said. "Using the adjustment techniques suggested, we have a good opportunity to increase the amount of available seats, without necessarily buying new planes," he said.
"This will not be achieved in one shot. In some cases this will mean building the administrative structure from the ground up," he added.
