Government scraps EgyptAir privatisation

   London
04:00 4 Dec 2007 
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Plans to privatise a minority shareholding in EgyptAir have been scrapped following the airline’s formal decision to join Star Alliance.

The Egyptian Government had been considering selling a 20% shareholding in the carrier and this was expected to take place next year.

But a spokeswoman for the airline says: “It’s not been postponed. It’s been cancelled. This is because EgyptAir will join Star Alliance – it’s a different situation now.”

Accession to Star is expected to generate greater income for the carrier and these financial forecasts have prompted the Government to reassess the need to privatise the airline.

EgyptAir was accepted as a future Star partner in October and is hoping to join the alliance in a few months’ time. The Government could not immediately be reached for comment.

 

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