Egypt Watch

Nile Air demands Egyptian government support it financially

Nile Air flights have invited the Egyptian banks and the sovereign fund to participate in the ownership of the company to support its financial position. Yousry Abdel Wahab, the company’s managing director, said that this would support the sector after the crisis, as well as help them avoid bankruptcy. He added that companies refuse to borrow to pay wages at an interest rate of eight per cent in light of the complete cessation of activity, and that they are seeking loans with good terms to retain workers, indicating that many companies have already begun layoffs and others have reduced wages by rates ranging between 25 and 50 per cent.

According to a memorandum sent by the Special Aviation Association to the Minister of Aviation, private airlines, which account for 30 per cent of passenger transport activity in Egypt, demanded to settle their dues with government institutions in order to secure them some financial liquidity.

The airline business was suspended and its revenues decreased due to the outbreak of coronavirus around the world and the interruption of flights between countries.