EgyptAir’s flight to Morocco halted, losses amount to LE500 million per month

EgyptAir’s daily flight to Casablanca, Morocco, has stopped operating after Moroccan authorities extended the state of emergency in the country until April 10 to limit the spread of COVID-19 and in light of precautionary measures applied by the country.

The Chairman and CEO of EgyptAir Holding Company Roshdy Zakaria said that the company obtained several loans worth five billion LE to face the repercussions of coronavirus crisis.

Roshdy added that the current operation of the company’s fleet does not exceed 50 percent compared to the rates achieved in 2019 due to the coronavirus, and so the company has incurred about LE 500 million per month in losses since the resumption of flights in July.

He explained that the first loan was worth LE two billion from the Ministry of Finance directed to the salaries of workers, and the second loan was worth three billion LE from several banks directed to pay aircraft installments and to manage aircraft for foreign agencies.

The company is moving ahead with the restructuring of EgyptAir Holding Company to merge its nine subsidiaries, he added: These are the Ground Services Company, the Air Services Company, Shipping, Tourism, Duty Free, Medical Services, Airlines, Hospitality, Maintenance, and Express, merging them all into four companies total in order to reduce losses and the costs of managing them.

And he added that the company has also stopped the usage of four Boeing B777-200 aircraft until the necessary examination from the global company Boeing, after some technical flaws were discovered.

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