A number of international airlines, including British Airways, Air France-KLM and Brazil’s TAM Airlines, have threatened to suspend ticket sales to Egypt due to issues with repatriating their revenues. Air France-KLM told Reuters last week that its earnings have been trapped in Egypt since October and that the airline is owed more than EGP 100 million (USD 12.77 million). “It is a very, very serious problem because all our revenues are blocked at the bank, but at the same time we do have all the same costs ongoing like leasing the aircraft, the fuel, the staff, overflying rights, ground handling etc, which have to be paid in dollars, so how do you suppose that we can sustain these operations?” Cees Ursem, Egypt’s country manager for the airline, said. Emirates Airline also reportedly has between USD 80 and 90 million in profits trapped in the country, while Lufthansa has struggled to repatriate USD 15-17 million and Air France-KLM about USD 12 million. According to financial news website Al-Borsa, head of the Egyptian Travel Agents Association Elhamy El Zayat said the total amount of foreign airline revenues currently trapped in Egypt is USD…
International Airlines Threaten to Suspend Egypt Ticket Sales Over Revenue Repatriation Issues
March 3, 2016
