Egypt’s flag carrier, EgyptAir, is set to receive $127 million (KSh13.6 Bn) from the government to enable it to remain afloat during the COVID-19 pandemic that has seen airline revenues dip due to suspension of international passenger flights.
Despite the suspension of international passenger flights, the carrier has been operating repatriation flights for citizens stranded abroad, as well as flying some domestic routes.
According to the country’s finance ministry, the government will support the carrier until it returns to 80% of its 2019 operations.
International Air Transport Association (IATA) projects that the global air industry will make revenue losses of between $63 billion and $113 billion in 2020 in the passenger sector. Additionally, the association reported that airlines worldwide might need up to $200 billion in state aid to remain afloat.
The Defence Web notes that since the COVID-19 outbreak, international bookings in Africa dropped roughly 20% in March and April, with domestic bookings declining by about 15% in March and 25% in April. By 11th March 2020, airlines had lost as much as $4.4 billion in revenue.
Read Also: COVID-19 Continues to Take a Toll on African Airlines
Other airlines, worldwide, which have received state bailouts include Air France KLM ($10.9), Germany’s Lufthansa ($10.8), and Dubai’s state-owned airline, Emirates.
EgyptAir is the state-owned flag carrier of Egypt, with its headquarters at the Cairo International Airport, which also doubles as its main hub. It operates scheduled passenger and freight services to more than 75 destinations in the Middle East, Europe, Africa, Asia, and the Americas.
The airline is also a member of Star Alliance and the Arab Air Carriers Organization.
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