Cairo-based airline Nile Air decided to pause on its plans for the initial public offering (IPO) at the Egyptian Exchange due to the closure of Egypt’s airspace, a top official told Al Borsa News.

The source added that the current goal is to keep the business going in line with the serious crisis in the aviation sector, which is not clear when it will end.

In addition, Nile Air delayed adding a new aircraft to its fleet, which was planned to reach 8 in 2020.

The company turned to profit in 2019 as the tourism sector was recovering, with the intension to increase the fleet to 20 aircraft, the official who preferred to remain anonymous said. He noted that COVID-19 crisis has changed all of Nile Air’s plans.

Egypt decided to first shut its airspace on March 19th when the outbreak of the virus emerged in the country.

Prime Minister Moustafa Madbouly on May 19th announced that the aviation air traffic will remain suspended until further notice.

Copyright © 2020 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.