EgyptAir expects profitable year, hopes to leverage Cairo hub

Posted 16/10/2009

EgyptAir Holding Co. Chairman and CEO Hussein Massoud told ATWOnline in Cairo that the airline has not been affected by the industry downturn as deeply as others and that it expects another profit in fiscal 2009-10.

MS's net earnings in the fiscal year ended June 30 were down 8% from the prior year, but Massoud said the carrier "expects more improvement" during the first half of 2010. It expects to carry around 8 million passengers in 2009-10, up some 14%. The biggest threat is expected to come from LCCs, which he said "are targeting our 80 million people in Egypt more and more, especially in Cairo."

EgyptAir does not plan to launch its own LCC. Instead, it is sticking to its long-term strategy and even has asked aircraft manufacturers to deliver ordered aircraft earlier. It is scheduled to take delivery of its 12th 737-800 today and has arranged to take the first of its eight A330-300s in August 2010 instead of August 2011, the CEO said.

The carrier expects to add 4-5 new African destinations each year as it looks to leverage its new membership in Star Alliance. The long-haul connections offered by the group and EgyptAir's potential to be Star's preferred African carrier led it to convert two 777-300ER orders into eight 737-800s (ATWOnline, Aug. 7). It still has six -300ERs on order. Its first -300ER should arrive in March, and the aircraft eventually will replace five 777-200s.

Massoud said three new West African destinations are expected to come online in 2010. Cairo International's Terminal 3 is the planet's only dedicated Star terminal, and he said MS needs to do more to get the word out. "It is working as a hub for Africa, the Middle East and Europe very well. But we have to do more advertising for Cairo as a hub," he said.

The current fleet plan is scheduled to be complete in 2014. "In 2003 we had 32 aircraft. Today we have 62 and by 2014 we will have 72, including replacing older aircraft," he said. MS also plans to lease an additional A300-600F and phase out two A300B4 freighters in the near future. By 2019, Massoud hopes to be flying the A380. "The day we feel we can operate the A380, we will start," he said.

by Kurt Hofmann

Originally published 19 Oct 2009 at: http://feeds.atwonline.com/~r/AtwDailyNews/~3/-kv44blBUJM/story.html