COVID-19: Nile Air halts IPO plans amid air traffic suspension
Nile Air delayed adding a new aircraft to its fleet, which was planned to reach 8 in 2020.
By Staff Writer, Arab Finance
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.
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