EgyptAir Cargo invests EGP 1.98bn to develop fleet through 2021

10 Feb 2018

EgyptAir Cargo intends to invest EGP 1.98bn to replace and renew its cargo until the end of the fiscal year 2020/2021.

Chief Executive Officer Bassem Gohar said that the company supports exports through a tripartite agreement with the Agriculture Export Council (AEC) and the Export Development Fund (EDF) of the Ministry of Trade.

He noted that, according to the protocol, the company is committed to facilitating seven weekly trips to Europe, including four to Germany and three to Belgium at predetermined prices ranging from $800-850 per tonne, next to the spaces on commercial flights to England and France.

He explained that the prices are subsidised by the Trade and Industry Ministry in support of exporters, explaining that the price of shipping did not change following the floatation of the pound in November 2016, while the prices of ground services increased by 10-15%, which does not match the cost hikes.

Gohar said that the company has three planes, two Airbus A300-600 and another A300B4 with a capacity of 40-42 tonnes.

He explained that the company has formulated a development plan on two divisions: fleet and infrastructure, where the company intends to replace and renew the existing aircraft with three new Airbus 330, that will turn from commercial to cargo airliners. The first will be received in June and the other in October this year.

He added that the third plane is scheduled to arrive in May 2019 with a capacity of 58 tonnes. The company also plans to add two smaller B737-800 planes each with a capacity of 20-22 tonnes to serve the African market.

Moreover, he said that the new planes will add 30% more cargo capacity, as the average loads now range between 40 and 42 tonnes, against 58 tonnes in the new planes.

He pointed out that the company plans to invest EGP 1.98bn through the end of fiscal year 2020/2021, including EGP 1.19bn in the coming fiscal year, EGP 393m in FY 2019/2020, then EGP 398m in the last fiscal year.

On the investment plan at the level of infrastructure, Gohar said that the company plans to invest EGP 275m in the coming fiscal year to add 15,000 sqm of storage.

He explained that the new space contributes to increasing the storage capacity of refrigerated products by 415%, 100% for live animals, and 34% for precious goods.

He explained that the total weekly exports transported by the company to the European market via cargo planes reach about 280 tonnes, next to 240 tonnes on commercial flights to Paris, Frankfurt, and Amsterdam.

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