Egyptair to propose merger plan of affiliate companies next week

Zakaria added that the holding company plans to merge its nine affiliated companies into four companies

  
An EgyptAir plane arrives to a water cannon salute on the runway of the Capital International Airport, a new airport built for Egypt's new capital, known as the New Administrative Capital (NAC), east of Cairo, Egypt July 9, 2019.

An EgyptAir plane arrives to a water cannon salute on the runway of the Capital International Airport, a new airport built for Egypt's new capital, known as the New Administrative Capital (NAC), east of Cairo, Egypt July 9, 2019.

REUTERS/Hayam Adel

ArabFinance: Egyptair Holding Company, the state-owned flag carrier of Egypt, will submit a merger proposal to its board of directors next week, Al Borsa News cited CEO and Chairman of Egyptair Roshdy Zakaria.

Zakaria added that the holding company plans to merge its nine affiliated companies into four companies only in a move to maximize returns and minimize losses.

He further noted that the company has no plans to obtain new loans despite the outbreak of COVID-19 pandemic.

Egyptair suffered EGP 600 million in loss monthly in 2020, and the current operation rates range between 40% and 50%.

In 2020, the company received EGP 2 billion as a supportive loan against the repercussions of the coronavirus until the company is able to attain 80% of its 2019 operation rates.

The move followed President Abdel-Fattah El-Sisi's directives to support the civil aviation sector against the COVID-19 implications that disrupted global air traffic disruption and significantly affected EgyptAir and its affiliates.

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