EgyptAir (MS, Cairo International) has enlisted US-based global technology company Sabre to help develop and implement a transformation program aimed at returning both the carrier and its EgyptAir Cargo (MSX, Cairo International) and EgyptAir Express (Cairo International) subsidiaries to profitability by June 2016.
The transformation strategy will address a wide range of EgyptAir’s operations including reviewing and developing a plan to improve the company’s financial performance; revenue management; network, fleet and crew planning; alliance partnerships, and fuel and maintenance strategies.
“Our goal is to increase revenues and return the airline to profitability by the end of the fiscal year 2015 / 2016, putting us in line with our global counterparts,” Captain Sameh El-Hefny, the Chairman and CEO of EgyptAir Holding Co., said.
“This is a comprehensive project to review the company’s current situation and recommend changes and solutions across almost every part of our business. Sabre is recognized as the best in the airline technology industry.”
Since the Arab Spring uprisings of 2011 and the overthrow of strongman Hosni Mubarak, Egyptair has struggled to return to profitability posting nearly USD880million in cumulative losses, mostly due to a downturn in tourism and a bloated workforce of 32'000.
Previous turnaround initiatives have considered the possibility of merging all three carriers operating under the EgyptAir Holding Company (EHC) - Egyptair, Egyptair Express, and EgyptAir Cargo - into one. Though all three operate using the same Air Operators Certificate (AOC), they are managed separately and have their own profit and loss accounts.
