EgyptAir faces new challenges in Cairo, Alexandria

Monday February 1, 2010

EgyptAir is considering the reorganization of its Cairo International flight schedule into multiple banks from the present two starting with the 2010-11 winter schedule, EgyptAir Airlines Chairman and CEO Alaa Ashour told ATWOnline in Cairo, as it attempts to increase transfer traffic.

The move would be an important part of its strategy to leverage its Star Alliance membership and build Cairo as an international hub (ATWOnline, Oct. 16, 2009). It hopes to increase transfer traffic to 30%-40% of its CAI throughput from the current 15%-20%.

"We'll start assessing the final and third phase of our network optimization in March," Ashour said. "Two banks are just not enough to develop a real hub network." The second phase of MS's restructuring was finalized last summer when it transferred all domestic and international flights to CAI's new Terminal 3. "This allowed us to reduce connecting times from 90 minutes to 60 minutes," he said.

Ashour also revealed that MS is considering changes to its operation at Alexandria, from which it operates to CAI and six Middle East destinations with a pair of A320s. EgyptAir Express operates to an additional seven domestic destinations. "We'll strengthen the base in a 'smart' way," he said, conceding that "maybe" a switch to a low-cost model is on the agenda. "We'll decide upon routes, aircraft, configuration and approach for our Alexandria-based operations," he said, noting that all Middle East LCCs fly into Egypt's second most populous city through either ALY or Borg El Arab, which is undergoing a major expansion and is scheduled to replace outdated ALY as the city's principal airport in the coming months.

Sama and Nas Air serve HBE from Jeddah and Riyadh, Flydubai from Dubai, Jazeera Airways from Kuwait City and Air Arabia from Sharjah. The latter poses an additional threat as it intends to establish Air Arabia Egypt this year through a joint venture with Egyptian travel and hospitality conglomerate Travco Group (ATWOnline, Sept. 10, 2009). Although the new carrier's base is unconfirmed, EgyptAir anticipates it will be at Alexandria, as the law makes CAI somewhat inaccessible to LCCs. Air Arabia Egypt also is expected to serve Luxor, Hurghada and Sharm El Sheikh.