Egyptair mulls additional state aid | News | Airfinance Journal

Egyptair mulls additional state aid

Egyptair might request another EGP5 billion ($318 million) to EGP7 billion in government support in 2021, the carrier’s chairman, Roshdy Zakaria, has told local media.

The aid would be used to pay employee salaries and aircraft leasing fees and pay off existing debt, Zakaria said.

Egyptair received roughly EGP5 billion in state support throughout last year in response to the Covid-19 pandemic.

As reported, Egyptair received an EGP2 billion loan in early 2021 to be financed by the Egyptian government until the airline can return to 80% of its pre-Covid-19 capacity levels.

The government funds will also be used to finance the Cairo-based airline’s expansion plans.

Zakaria added that Egyptair had signed agreements with Ghana to form a new Accra-based airline in the coming months, as part of the company’s expansion in Africa.

He said Egyptair will hold a 75% stake in the start-up, which will initially operate four Boeing 737-800s.

Egyptair operates a total of 85 aircraft, including 29 737-800s, three Airbus A220s, nine Embraer 170s and 18 A320-family units in its narrowbody segment, Airfinance Journal’s Fleet Tracker shows.

Transaction SnapshotEgypt Air | Government guaranteed loan | 05-20 | EGP2bn

Financial Close:
17/05/2020
Value:
$123.20m USD
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