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Finance Ministry grants EgyptAir Holding Company EGP 2bn loan - Daily News Egypt

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Finance Ministry grants EgyptAir Holding Company EGP 2bn loan

EgyptAir and subsidiaries greatly impacted by halt in global air traffic, with revenues grinding to complete halt

EgyptAir Holding Company will receive an EGP 2bn state treasury support loan until it achieves 80% of its 2019 operating volume, according to Minister of Finance Mohamed Maait.

This comes as presidential directives to support the civil aviation sector are implemented, due to the negative effects of the coronavirus (COVID-19) crisis. Much of the world’s air traffic has been grounded in recent months, as part of efforts to curb the spread of the virus.

Maait added that the interruption of global air traffic has greatly impacted EgyptAir and its subsidiaries, with revenues grinding to a complete halt. In addition, there remain the fixed expenses of workers’ wages and other costs of running an airline.

Maait said two meetings were held between Minister of Civil Aviation Mohamed Manar and EgyptAir representatives to discuss the basic needs for which funding is required under the current exceptional circumstances.

He added that several stimulation packages have been issued to support the sectors affected by the ongoing coronavirus outbreak. On the back of this, Law No. 24 of 2020 was issued at the end of March that outlined the financial rules required to deal with the repercussions of the coronavirus pandemic.

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